Danaher Corp. (DHR) Upgraded to Buy at Zacks Investment Research
Danaher Corp. (NYSE:DHR) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Wednesday. The brokerage presently has a $86.00 target price on the stock. Zacks Investment Research’s price target would indicate a potential upside of 12.52% from the company’s current price.
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. On Jul 2, the company completed the Fortive spin-off which will help it channelize resources to core business areas and improve growth, margins and cash flow over the long haul. Also, the company recently declared the buyout of California-based Cepheid to fortify its presence in the molecular diagnostics market. Moreover, Danaher's successful product launches coupled with thriving dental and healthcare businesses signal at bright prospects ahead. However, sluggish economic conditions across some key operating regions and unfavorable currency translations pose as significant headwinds.”
A number of other equities research analysts have also recently issued reports on the stock. Goldman Sachs Group Inc. started coverage on shares of Danaher Corp. in a research report on Tuesday, July 5th. They issued a “neutral” rating and a $74.00 target price for the company. Morgan Stanley reaffirmed a “buy” rating and set a $86.00 price objective on shares of Danaher Corp. in a research report on Wednesday, August 31st. JPMorgan Chase & Co. reaffirmed a “buy” rating and set a $90.00 price objective on shares of Danaher Corp. in a research report on Thursday, October 6th. Barclays PLC reaffirmed an “overweight” rating and set a $86.00 price objective (down previously from $105.00) on shares of Danaher Corp. in a research report on Monday, July 11th. Finally, Vetr raised shares of Danaher Corp. from a “hold” rating to a “buy” rating and set a $81.69 price objective for the company in a research report on Monday, September 12th. Seven analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company’s stock. Danaher Corp. currently has an average rating of “Buy” and a consensus target price of $92.87.
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Shares of Danaher Corp. (NYSE:DHR) traded up 0.79% during midday trading on Wednesday, hitting $77.03. 920,406 shares of the stock traded hands. Danaher Corp. has a 52 week low of $61.60 and a 52 week high of $82.64. The firm’s 50-day moving average is $77.85 and its 200 day moving average is $76.92. The company has a market capitalization of $53.19 billion, a price-to-earnings ratio of 15.32 and a beta of 1.13.
Danaher Corp. (NYSE:DHR) last announced its earnings results on Monday, July 25th. The company reported $1.25 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.22 by $0.03. The company earned $5.80 billion during the quarter, compared to analysts’ expectations of $5.76 billion. Danaher Corp. had a net margin of 15.88% and a return on equity of 13.40%. Danaher Corp.’s quarterly revenue was up 16.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.08 earnings per share. Equities analysts forecast that Danaher Corp. will post $3.56 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Friday, October 28th. Shareholders of record on Friday, September 30th will be issued a dividend of $0.125 per share. This represents a $0.50 dividend on an annualized basis and a dividend yield of 0.65%. The ex-dividend date is Wednesday, September 28th. Danaher Corp.’s payout ratio is 9.94%.
In related news, CFO Daniel L. Comas sold 96,446 shares of the 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 transaction, the chief financial officer now directly owns 215,716 shares in the company, valued at approximately $17,447,110.08. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Thomas Patrick Joyce, Jr. sold 45,897 shares of the stock in a transaction on Monday, August 1st. The stock was sold at an average price of $81.44, for a total value of $3,737,851.68. Following the completion of the transaction, the insider now owns 179,054 shares in the company, valued at $14,582,157.76. The disclosure for this sale can be found here. Company insiders own 12.60% of the company’s stock.
Several institutional investors have recently modified their holdings of DHR. Global X Management Co. LLC boosted its position in shares of Danaher Corp. by 83.4% in the second quarter. Global X Management Co. LLC now owns 1,080 shares of the company’s stock worth $109,000 after buying an additional 491 shares in the last quarter. Thompson Davis & CO. Inc. boosted its position in shares of Danaher Corp. by 15.3% in the second quarter. Thompson Davis & CO. Inc. now owns 1,284 shares of the company’s stock valued at $130,000 after buying an additional 170 shares during the period. Cribstone Capital Management LLC bought a new position in shares of Danaher Corp. during the second quarter valued at $132,000. Wealthcare Capital Management LLC bought a new position in shares of Danaher Corp. during the second quarter valued at $144,000. Finally, Motco boosted its position in shares of Danaher Corp. by 6.8% in the second quarter. Motco now owns 1,585 shares of the company’s stock valued at $160,000 after buying an additional 101 shares during the period. Institutional investors own 75.73% of the company’s stock.
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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