Thomasville National Bank has increased its stake in Thermo Fisher Scientific Inc. (NYSE: TMO) by 4.6% during the third quarter of 2023, as reported in its latest filing with the Securities and Exchange Commission (SEC). The bank now holds a total of 36,121 shares of the medical research company, having acquired an additional 1,592 shares, bringing the value of its holdings to approximately $17.5 million at the end of September.
Several other institutional investors have also adjusted their positions in Thermo Fisher Scientific. Tilia Fiduciary Partners Inc. increased its holdings by 3.3%, now owning 4,685 shares valued at about $2.27 million, after purchasing an additional 151 shares. Sarasin & Partners LLP raised its stake by 4.6%, acquiring an extra 11,818 shares, which brings its total to 268,407 shares worth $124 million. Douglas Lane & Associates LLC also boosted its position by 8.4%, now holding 216,276 shares valued at around $104.9 million.
In a notable move, Orrstown Financial Services Inc. enhanced its stake by 27.9%, adding 402 shares to reach 1,845 shares valued at $895,000. Wedge Capital Management L L P NC increased its position by 5.7%, holding 18,859 shares worth $9.15 million. Overall, institutional investors own approximately 89.23% of Thermo Fisher’s stock.
Analysts Raise Price Targets for Thermo Fisher Scientific
Recent evaluations by analysts indicate a positive outlook for Thermo Fisher Scientific. The Goldman Sachs Group initiated coverage on the stock on December 9, giving it a “buy” rating with a price target of $685.00. HSBC Global Research upgraded its rating from “hold” to “strong-buy” on December 1. Argus increased its price target from $580.00 to $610.00, while KeyCorp set a higher target at $750.00 after upgrading its rating to “overweight.”
TD Cowen also raised its target price from $612.00 to $654.00, reinforcing a “buy” rating. Currently, one analyst has given a “Strong Buy” rating, twenty have rated it as a “Buy,” and three have issued a “Hold” rating. According to MarketBeat.com, the average rating for Thermo Fisher Scientific is “Moderate Buy,” with an average price target of $616.60.
Thermo Fisher Scientific Reports Strong Quarterly Earnings
Thermo Fisher Scientific recently announced its quarterly earnings on October 22, revealing an earnings per share (EPS) of $5.79, surpassing analysts’ expectations of $5.50 by $0.29. The company reported revenues of $11.12 billion, exceeding the consensus estimate of $10.90 billion. This marks a 4.9% increase in revenue compared to the same quarter last year, when the EPS was $5.28.
The company has issued guidance for fiscal year 2025, projecting EPS between $22.60 and $22.86. Analysts predict that Thermo Fisher will report an EPS of $23.28 for the current year.
In addition to its robust earnings, Thermo Fisher announced a quarterly dividend of $0.43 per share, scheduled for payment on January 15, 2024, to shareholders of record as of December 15, 2023. This results in an annualized dividend of $1.72 and a yield of 0.3%. The company’s dividend payout ratio currently stands at 9.94%.
Share Repurchase and Insider Transactions
On November 6, Thermo Fisher’s board approved a stock buyback program allowing the company to repurchase up to $5 billion in outstanding shares, equivalent to about 2.4% of its stock. Such buyback programs are often viewed as a sign that management believes the company’s shares are undervalued.
In recent insider activity, Executive Vice President Frederick M. Lowery sold 6,913 shares on December 1 at an average price of $597.68, totaling approximately $4.13 million. Following this transaction, Lowery holds 14,367 shares valued at around $8.59 million, indicating a 32.49% decrease in ownership. Vice President Lisa P. Britt also sold 10,225 shares on November 7 for approximately $5.84 million, reducing her ownership by 41.96% to 14,145 shares valued at about $8.09 million.
Overall, insiders sold a total of 149,271 shares valued at $86.51 million over the last quarter, with insiders owning 0.33% of the company’s stock.
Company Overview
Thermo Fisher Scientific (NYSE: TMO) is a leading global provider of scientific instrumentation, reagents, consumables, software, and services that support research, clinical, and industrial laboratories. The company’s extensive portfolio includes analytical instruments, laboratory equipment, life sciences reagents, diagnostic tools, and various consumables essential for researchers, clinicians, and manufacturers.
With a market capitalization of $213.03 billion, Thermo Fisher Scientific continues to play a pivotal role in advancing scientific research and development. The company’s financial performance, coupled with strategic investments by institutional investors, underscores a strong position in the market.
