Avantor (NYSE:AVTR) Announces Earnings Results

Key Points

• Avantor reported earnings of $0.24 per share, missing analysts' expectations of $0.25, with revenue of $1.68 billion for the quarter, slightly above the expected $1.67 billion but down 1.1% year-over-year.
• Following the earnings report, Avantor's shares dropped to $11.32, with a significant trading volume of 45 million shares, and its stock currently has a market capitalization of $7.72 billion.
• Multiple analysts downgraded their ratings and price targets for Avantor, with Wells Fargo reducing its price target from $25.00 to $22.00, while Goldman Sachs cut theirs from $23.00 to $14.00, reflecting a cautious outlook.

Avantor (NYSE:AVTR - Get Free Report) released its earnings results on Friday. The company reported $0.24 earnings per share for the quarter, missing analysts' consensus estimates of $0.25 by ($0.01), Zacks reports. Avantor had a return on equity of 11.93% and a net margin of 10.70%. The business had revenue of $1.68 billion during the quarter, compared to analysts' expectations of $1.67 billion. During the same quarter in the previous year, the business earned $0.25 EPS. The business's revenue for the quarter was down 1.1% on a year-over-year basis.

Avantor Price Performance

Shares of Avantor stock traded down $2.12 on Friday, reaching $11.32. The company's stock had a trading volume of 45,071,899 shares, compared to its average volume of 10,410,272. The company has a market capitalization of $7.72 billion, a P/E ratio of 10.87, a PEG ratio of 1.46 and a beta of 1.05. Avantor has a 52-week low of $10.82 and a 52-week high of $27.83. The stock has a 50-day moving average price of $13.40 and a 200-day moving average price of $15.56. The company has a quick ratio of 0.75, a current ratio of 1.12 and a debt-to-equity ratio of 0.54.

Insider Activity at Avantor

In other Avantor news, Director Gregory L. Summe acquired 30,000 shares of the business's stock in a transaction dated Friday, May 23rd. The stock was acquired at an average cost of $12.50 per share, for a total transaction of $375,000.00. Following the completion of the transaction, the director directly owned 100,000 shares of the company's stock, valued at $1,250,000. This represents a 42.86% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders purchased 75,000 shares of company stock valued at $928,000 in the last three months. 1.20% of the stock is owned by insiders.

Institutional Trading of Avantor

A hedge fund recently raised its stake in Avantor stock. Royal Bank of Canada lifted its position in Avantor, Inc. (NYSE:AVTR - Free Report) by 104.3% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 203,738 shares of the company's stock after acquiring an additional 104,022 shares during the period. Royal Bank of Canada's holdings in Avantor were worth $3,302,000 as of its most recent filing with the Securities and Exchange Commission (SEC). 95.08% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the company. Wells Fargo & Company cut their price target on Avantor from $25.00 to $22.00 and set an "overweight" rating on the stock in a research note on Thursday, April 17th. The Goldman Sachs Group lowered Avantor from a "buy" rating to a "neutral" rating and cut their price target for the company from $23.00 to $14.00 in a research note on Tuesday, April 29th. TD Cowen downgraded Avantor from a "buy" rating to a "hold" rating and set a $15.50 price objective on the stock. in a research report on Monday, April 28th. Royal Bank Of Canada dropped their price objective on Avantor from $24.00 to $20.00 and set an "outperform" rating on the stock in a research report on Monday, April 28th. Finally, Barclays dropped their price objective on Avantor from $18.00 to $15.00 and set an "overweight" rating on the stock in a research report on Monday, April 28th. Eight research analysts have rated the stock with a hold rating and five have given a buy rating to the company. According to MarketBeat.com, Avantor has an average rating of "Hold" and an average price target of $18.23.

About Avantor

Avantor, Inc engages in the provision of mission-critical products and services to customers in the biopharma, healthcare, education and government, advanced technologies, and applied materials industries in the Americas, Europe, Asia, the Middle East, and Africa. The company offers materials and consumables, such as purity chemicals and reagents, lab products and supplies, formulated silicone materials, customized excipients, customized single-use assemblies, process chromatography resins and columns, analytical sample prep kits, education and microbiology products, clinical trial kits, peristaltic pumps, and fluid handling tips.

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