Avantor (NYSE:AVTR) Shares Gap Up on Strong Earnings

Key Points

• Beat expectations: Avantor reported Q results with EPS of $0.17 (vs. $0.16 expected) and revenue of $1.58B (vs. $1.55B expected), sending the stock to a premarket gap up (opened $8.50 vs. prior close $7.86).
• Insider and institutional buying: Company directors bought a combined 225,000 shares recently (275,000 shares total in 90 days), while large institutions — including Wellington and Morgan Stanley — established or increased major stakes; institutional ownership stands at 95.08%.
• Mixed outlook: Analysts' consensus is a "Hold" with a $11.54 target amid divergent price targets and ratings, and the stock shows mixed fundamentals (negative net margin, negative P/E) and trades below its 200-day moving average.

Avantor, Inc. (NYSE:AVTR - Get Free Report)'s share price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $7.86, but opened at $8.50. Avantor shares last traded at $7.92, with a volume of 2,179,825 shares trading hands.

The company reported $0.17 earnings per share for the quarter, topping analysts' consensus estimates of $0.16 by $0.01. The firm had revenue of $1.58 billion during the quarter, compared to analysts' expectations of $1.55 billion. Avantor had a negative net margin of 8.09% and a positive return on equity of 10.45%. The firm's revenue was up .0% on a year-over-year basis. During the same period in the prior year, the company earned $0.23 EPS.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on AVTR shares. Robert W. Baird set a $11.00 target price on Avantor in a research note on Thursday, February 12th. Zacks Research cut Avantor from a "hold" rating to a "strong sell" rating in a research note on Friday, February 13th. Jefferies Financial Group restated an "underperform" rating and set a $8.00 price objective on shares of Avantor in a research note on Thursday, February 12th. Morgan Stanley set a $10.00 price objective on Avantor in a report on Friday, February 13th. Finally, Barclays cut their target price on Avantor from $8.50 to $7.00 and set an "underweight" rating on the stock in a research report on Tuesday, April 14th. Three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat.com, Avantor presently has an average rating of "Hold" and a consensus price target of $11.54.

Insider Activity at Avantor

In related news, Director Sanjeev K. Mehra bought 125,000 shares of the company's stock in a transaction on Tuesday, March 10th. The shares were purchased at an average cost of $8.01 per share, with a total value of $1,001,250.00. Following the completion of the transaction, the director directly owned 475,000 shares of the company's stock, valued at approximately $3,804,750. This represents a 35.71% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Gregory L. Summe purchased 100,000 shares of Avantor stock in a transaction dated Thursday, February 12th. The shares were purchased at an average cost of $9.40 per share, with a total value of $940,000.00. Following the acquisition, the director owned 400,000 shares of the company's stock, valued at approximately $3,760,000. This trade represents a 33.33% increase in their position. The SEC filing for this purchase provides additional information. Insiders purchased 275,000 shares of company stock worth $2,399,250 in the last 90 days. 0.28% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Wellington Management Group LLP bought a new stake in shares of Avantor during the fourth quarter valued at approximately $268,584,000. Greenhaven Associates Inc. bought a new position in Avantor in the 3rd quarter worth approximately $228,528,000. London Co. of Virginia acquired a new stake in Avantor in the 3rd quarter valued at approximately $159,669,000. Morgan Stanley increased its position in Avantor by 179.4% in the 4th quarter. Morgan Stanley now owns 17,468,418 shares of the company's stock valued at $200,188,000 after acquiring an additional 11,216,565 shares during the period. Finally, Norges Bank bought a new stake in Avantor during the 4th quarter valued at $73,322,000. Institutional investors own 95.08% of the company's stock.

Avantor Stock Down 0.4%

The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.18 and a current ratio of 1.78. The firm has a 50 day simple moving average of $8.19 and a two-hundred day simple moving average of $10.53. The stock has a market cap of $5.34 billion, a P/E ratio of -10.00, a P/E/G ratio of 3.13 and a beta of 1.00.

About Avantor

Avantor, Inc NYSE: AVTR is a global provider of mission-critical products and services to customers in the biopharma, healthcare, education & government, and advanced technologies & applied materials industries. The company delivers essential solutions that support research, development, production and safety applications. Its product portfolio spans from high-purity chemicals and reagents to biologics and cell culture media, as well as lab equipment, consumables and custom manufacturing services.

Avantor's offerings are organized across two primary segments.

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