Stock Repurchase Program Approved by MKS (NASDAQ:MKSI) Board of Directors

Key Points

• MKS’s board approved a $500 million share repurchase program, authorizing open-market buybacks of up to 3.6% of outstanding shares.
• The company beat quarterly earnings and revenue estimates, reporting EPS of $4.18 versus $3.63 expected and revenue of $1.41 billion, up 43% year over year.
• Despite the results, MKSI shares fell to $194.95 during Wednesday trading. Analysts’ average rating was “Moderate Buy,” with an average price target of $374.86.

MKS (NASDAQ:MKSI - Get Free Report) announced that its board has approved a stock repurchase program on Wednesday, November 4th, RTT News reports. The company plans to repurchase $500 million in outstanding shares. This buyback authorization allows the scientific and technical instruments company to purchase up to 3.6% of its shares through open market purchases. Share buyback programs are usually an indication that the company's leadership believes its stock is undervalued.

MKS Stock Performance

MKSI stock traded down $10.23 during midday trading on Wednesday, reaching $194.95. 2,497,938 shares of the company's stock traded hands, compared to its average volume of 1,376,911. The firm has a market capitalization of $13.18 billion, a PE ratio of 31.09, a price-to-earnings-growth ratio of 0.43 and a beta of 2.14. The company has a 50-day moving average price of $243.61 and a two-hundred day moving average price of $277.24. MKS has a 52 week low of $134.74 and a 52 week high of $447.62. The company has a debt-to-equity ratio of 0.85, a quick ratio of 0.72 and a current ratio of 1.14.

MKS (NASDAQ:MKSI - Get Free Report) last posted its earnings results on Wednesday, November 4th. The scientific and technical instruments company reported $4.18 earnings per share for the quarter, beating analysts' consensus estimates of $3.63 by $0.55. The business had revenue of $1.41 billion during the quarter, compared to analyst estimates of $1.36 billion. MKS had a return on equity of 24.72% and a net margin of 10.15%. The company's quarterly revenue was up 43.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.93 EPS. As a group, equities analysts anticipate that MKS will post 13.14 EPS for the current year.

Analysts Set New Price Targets

MKSI has been the subject of a number of research analyst reports. Mizuho decreased their target price on MKS from $360.00 to $330.00 and set an "outperform" rating for the company in a research report on Tuesday, August 25th. Needham & Company LLC increased their price target on MKS from $360.00 to $390.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Weiss Ratings cut MKS from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday, September 28th. Wall Street Zen upgraded MKS from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 8th. Finally, Morgan Stanley decreased their price objective on MKS from $345.00 to $330.00 and set an "overweight" rating for the company in a report on Monday, October 26th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $374.86.

Insider Activity at MKS

In related news, Director Elizabeth Mora sold 300 shares of the firm's stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $250.96, for a total value of $75,288.00. Following the sale, the director directly owned 18,845 shares of the company's stock, valued at $4,729,341.20. This trade represents a 1.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO John Tseng-Chung Lee sold 10,000 shares of MKS stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $302.01, for a total transaction of $3,020,100.00. Following the sale, the chief executive officer owned 134,776 shares of the company's stock, valued at approximately $40,703,699.76. The trade was a 6.91% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.57% of the stock is currently owned by corporate insiders.

MKS Company Profile

MKS Instruments, Inc NASDAQ: MKSI develops technologies that enable precision control and measurement in manufacturing and research environments. The company provides instruments, components, systems and process-control solutions used to measure and control pressure, flow, vacuum, gas delivery, temperature and other critical production conditions.

Its product portfolio includes vacuum solutions, pressure and flow-control instruments, gas and vapor delivery systems, plasma and reactive-gas technologies, power delivery systems, process-monitoring equipment, analytical instruments and materials-characterization tools.

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