Danaher Corp. (DHR) Downgraded by Zacks Investment Research
Danaher Corp. (NYSE:DHR) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Thursday.
According to Zacks, “Danaher has a decent earnings surprise history, beating estimates thrice, over the trailing four quarters. Of late, the company has been witnessing core revenue growth, margin expansion and earnings improvement, backed by its operating culture – Danaher Business System. Going forward, its diligent acquisition strategies look promising. After the Fortive spin-off on Jul 2, Danaher recently declared the buyout of California-based Cepheid to fortify its presence in the molecular diagnostics market. However, Danaher has been witnessing persistent weakness in key industrial markets, including Latin America and a few European regions, which has put sales under pressure. Also, currency headwinds continue to dent sales and are most likely to mar Danaher’s financials in the near term. Going forward, continual weakness in industrial markets, stiff competition and a stringent regulatory environment may hurt the company's financials.”
Several other research firms have also recently commented on DHR. JPMorgan Chase & Co. reaffirmed a “buy” rating and issued a $105.00 price target on shares of Danaher Corp. in a report on Thursday, June 30th. Citigroup Inc. upped their price target on Danaher Corp. from $102.00 to $104.00 and gave the company a “neutral” rating in a report on Monday, June 13th. Morgan Stanley reaffirmed a “buy” rating and issued a $86.00 price target on shares of Danaher Corp. in a report on Wednesday, August 31st. Barclays PLC reaffirmed an “overweight” rating and issued a $90.00 price target on shares of Danaher Corp. in a report on Wednesday, July 27th. Finally, Jefferies Group upped their price target on Danaher Corp. from $92.00 to $93.00 and gave the company a “buy” rating in a report on Tuesday, July 26th. Nine investment analysts have rated the stock with a hold rating and ten have issued a buy rating to the company. The company currently has an average rating of “Buy” and an average target price of $93.98.
Shares of Danaher Corp. (NYSE:DHR) opened at 77.33 on Thursday. The stock has a market cap of $53.40 billion, a PE ratio of 15.38 and a beta of 1.13. Danaher Corp. has a 52-week low of $61.60 and a 52-week high of $82.64. The company’s 50-day moving average price is $79.36 and its 200-day moving average price is $76.33.
Danaher Corp. (NYSE:DHR) last announced its earnings results on Monday, July 25th. The company reported $1.25 earnings per share for the quarter, beating the consensus estimate of $1.22 by $0.03. Danaher Corp. had a return on equity of 13.40% and a net margin of 15.88%. The firm earned $5.80 billion during the quarter, compared to the consensus estimate of $5.76 billion. During the same quarter in the prior year, the company earned $1.08 EPS. The firm’s revenue for the quarter was up 16.6% compared to the same quarter last year. Analysts expect that Danaher Corp. will post $3.56 earnings per share for the current year.
The business also recently declared a quarterly dividend, which will be paid on Friday, October 28th. Stockholders of record on Friday, September 30th will be given a $0.125 dividend. The ex-dividend date is Wednesday, September 28th. This represents a $0.50 annualized dividend and a dividend yield of 0.64%. Danaher Corp.’s dividend payout ratio is currently 12.72%.
In related news, insider Thomas Patrick Joyce, Jr. sold 45,897 shares of the firm’s stock in a transaction on Monday, August 1st. The stock was sold at an average price of $81.44, for a total transaction of $3,737,851.68. Following the sale, the insider now owns 179,054 shares of the company’s stock, valued at approximately $14,582,157.76. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Daniel L. Comas sold 96,446 shares of the firm’s stock in a transaction on Wednesday, July 27th. The stock was sold at an average price of $80.88, for a total value of $7,800,552.48. Following the sale, the chief financial officer now directly owns 215,716 shares in the company, valued at approximately $17,447,110.08. The disclosure for this sale can be found here. 12.60% of the stock is owned by insiders.
A number of hedge funds have recently modified their holdings of DHR. Green Valley Investors LLC acquired a new stake in shares of Danaher Corp. during the second quarter valued at approximately $219,027,000. Vanguard Group Inc. increased its stake in shares of Danaher Corp. by 4.5% in the second quarter. Vanguard Group Inc. now owns 36,674,510 shares of the company’s stock valued at $3,704,126,000 after buying an additional 1,586,751 shares during the last quarter. FMR LLC increased its stake in shares of Danaher Corp. by 3.3% in the second quarter. FMR LLC now owns 35,987,650 shares of the company’s stock valued at $3,634,752,000 after buying an additional 1,165,271 shares during the last quarter. Aristotle Capital Management LLC increased its stake in shares of Danaher Corp. by 219.9% in the second quarter. Aristotle Capital Management LLC now owns 1,598,913 shares of the company’s stock valued at $161,490,000 after buying an additional 1,099,123 shares during the last quarter. Finally, American Century Companies Inc. acquired a new stake in shares of Danaher Corp. during the second quarter valued at approximately $88,276,000. 75.74% of the stock is currently owned by institutional investors and hedge funds.
About Danaher Corp.
Danaher Corporation designs, manufactures and markets professional, medical, industrial and commercial products and services. The Company operates in five segments: Test & Measurement; Environmental; Life Sciences & Diagnostics; Dental, and Industrial Technologies. Its Test & Measurement segment offers products, software and services.
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