Zacks Investment Research Downgrades Thermo Fisher Scientific (NYSE:TMO) to Hold

Thermo Fisher Scientific (NYSE:TMO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday, August 7th.

According to Zacks, “Thermo Fisher ended the second quarter on a promising note. We are encouraged by the company’s solid international performance on strong growth in China. Thermo Fisher also saw strength in all end markets categorized either by customer type or geography. Also, a series of product launches along with major progress in precision medicine initiatives aided the company’s performance. Moreover, the Patheon buyout has been substantially adding an impetus to the company’s value proposition for biopharma customers. Also, Thermo Fisher’s initiative to buy Gatan in order to boost electron microscopy suite buoys optimism. The company has outperformed its industry in the past year. On the flip side, in the reported quarter, Thermo Fisher’s business segments were impacted by unfavorable business mix. Also, competitive headwinds and rising operating costs continue to pose a threat.”

TMO has been the subject of several other reports. Morgan Stanley raised their price objective on Thermo Fisher Scientific from $233.00 to $242.00 and gave the stock an “overweight” rating in a research note on Thursday, July 26th. JPMorgan Chase & Co. restated an “overweight” rating and issued a $300.00 target price on shares of Thermo Fisher Scientific in a report on Thursday, July 26th. ValuEngine lowered Thermo Fisher Scientific from a “buy” rating to a “hold” rating in a report on Wednesday, June 20th. Finally, Leerink Swann increased their target price on Thermo Fisher Scientific from $239.00 to $255.00 and gave the company an “outperform” rating in a report on Thursday, July 26th. Two research analysts have rated the stock with a hold rating and eleven have given a buy rating to the stock. The company has a consensus rating of “Buy” and a consensus price target of $239.08.

NYSE TMO traded down $0.09 on Tuesday, reaching $239.10. 812,800 shares of the stock traded hands, compared to its average volume of 1,401,227. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.11 and a current ratio of 1.58. The firm has a market cap of $95.85 billion, a P/E ratio of 25.20, a PEG ratio of 1.73 and a beta of 1.13. Thermo Fisher Scientific has a 12 month low of $177.29 and a 12 month high of $240.88.

Thermo Fisher Scientific (NYSE:TMO) last issued its quarterly earnings results on Wednesday, July 25th. The medical research company reported $2.75 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.63 by $0.12. The firm had revenue of $6.08 billion during the quarter, compared to analyst estimates of $5.90 billion. Thermo Fisher Scientific had a return on equity of 16.28% and a net margin of 10.36%. The firm’s quarterly revenue was up 21.8% on a year-over-year basis. During the same period last year, the company posted $2.30 EPS. research analysts predict that Thermo Fisher Scientific will post 10.98 earnings per share for the current fiscal year.

In other Thermo Fisher Scientific news, CEO Marc N. Casper sold 50,000 shares of the firm’s stock in a transaction dated Monday, August 6th. The stock was sold at an average price of $233.95, for a total transaction of $11,697,500.00. Following the transaction, the chief executive officer now directly owns 320,122 shares in the company, valued at $74,892,541.90. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Marc N. Casper sold 45,000 shares of the firm’s stock in a transaction dated Friday, June 15th. The shares were sold at an average price of $214.80, for a total value of $9,666,000.00. Following the completion of the sale, the chief executive officer now directly owns 315,122 shares in the company, valued at $67,688,205.60. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 168,050 shares of company stock worth $37,585,029. Corporate insiders own 0.49% of the company’s stock.

Several large investors have recently modified their holdings of the company. Millennium Management LLC grew its position in Thermo Fisher Scientific by 1,711.5% during the first quarter. Millennium Management LLC now owns 599,623 shares of the medical research company’s stock worth $123,798,000 after buying an additional 566,523 shares in the last quarter. Summit Trail Advisors LLC grew its position in Thermo Fisher Scientific by 17,587.1% during the first quarter. Summit Trail Advisors LLC now owns 544,587 shares of the medical research company’s stock worth $545,000 after buying an additional 541,508 shares in the last quarter. BlackRock Inc. grew its position in Thermo Fisher Scientific by 2.0% during the first quarter. BlackRock Inc. now owns 24,582,453 shares of the medical research company’s stock worth $5,075,294,000 after buying an additional 475,267 shares in the last quarter. Bank of Montreal Can acquired a new stake in Thermo Fisher Scientific during the second quarter worth about $95,849,000. Finally, Chevy Chase Trust Holdings Inc. acquired a new stake in Thermo Fisher Scientific during the second quarter worth about $70,775,000. 85.93% of the stock is currently owned by institutional investors.

Thermo Fisher Scientific Company Profile

Thermo Fisher Scientific Inc provides analytical instruments, equipment, reagents and consumables, software, and services for research, manufacturing, analysis, discovery, and diagnostics under the Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, and Unity Lab Services brands worldwide.

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