Thermo Fisher Scientific Inc. $TMO Shares Sold by Rathbones Group PLC

Key Points

• Strong quarter: Thermo Fisher beat estimates with Q EPS of $6.57 vs. $6.45 and revenue of $12.22B (up 7.2% year-over-year), while reporting a 15.05% net margin and 16.92% ROE.
• Institutional activity: Rathbones trimmed its stake by 1.7% to 926,733 shares (about $537M), making TMO its 10th-largest holding, even as several large funds (Capital World, Franklin, BNY Mellon, MFS) increased positions and institutional ownership sits at ~89%.
• Shareholder returns and sentiment: Thermo Fisher raised its quarterly dividend to $0.47 ($1.88 annualized, yield ~0.4%), and analysts remain broadly positive with a consensus price target of about $632.50 (majority Buy ratings).

Rathbones Group PLC decreased its stake in shares of Thermo Fisher Scientific Inc. (NYSE:TMO - Free Report) by 1.7% in the 4th quarter, according to its most recent Form 13F filing with the SEC. The fund owned 926,733 shares of the medical research company's stock after selling 15,658 shares during the period. Thermo Fisher Scientific accounts for 1.7% of Rathbones Group PLC's portfolio, making the stock its 10th largest position. Rathbones Group PLC owned about 0.25% of Thermo Fisher Scientific worth $536,995,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also made changes to their positions in the company. Capital World Investors boosted its holdings in Thermo Fisher Scientific by 7.4% in the third quarter. Capital World Investors now owns 10,285,145 shares of the medical research company's stock valued at $4,988,132,000 after acquiring an additional 706,572 shares during the last quarter. Franklin Resources Inc. increased its position in shares of Thermo Fisher Scientific by 21.0% in the third quarter. Franklin Resources Inc. now owns 5,925,671 shares of the medical research company's stock worth $2,874,069,000 after acquiring an additional 1,028,125 shares in the last quarter. Bank of New York Mellon Corp lifted its holdings in shares of Thermo Fisher Scientific by 54.7% during the 3rd quarter. Bank of New York Mellon Corp now owns 3,571,857 shares of the medical research company's stock valued at $1,732,422,000 after acquiring an additional 1,262,967 shares in the last quarter. Massachusetts Financial Services Co. MA boosted its position in Thermo Fisher Scientific by 25.4% during the 3rd quarter. Massachusetts Financial Services Co. MA now owns 2,936,998 shares of the medical research company's stock worth $1,424,503,000 after purchasing an additional 594,218 shares during the period. Finally, Fisher Asset Management LLC lifted its stake in shares of Thermo Fisher Scientific by 1.2% during the third quarter. Fisher Asset Management LLC now owns 2,721,101 shares of the medical research company's stock worth $1,319,789,000 after purchasing an additional 31,298 shares in the last quarter. 89.23% of the stock is currently owned by institutional investors and hedge funds.

Thermo Fisher Scientific Stock Performance

Shares of NYSE TMO opened at $492.90 on Monday. The stock has a fifty day moving average price of $516.40 and a two-hundred day moving average price of $548.68. Thermo Fisher Scientific Inc. has a 1 year low of $385.46 and a 1 year high of $643.99. The firm has a market cap of $183.10 billion, a P/E ratio of 27.78, a PEG ratio of 2.63 and a beta of 0.97. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.53 and a current ratio of 1.89.

Thermo Fisher Scientific (NYSE:TMO - Get Free Report) last issued its quarterly earnings results on Thursday, January 29th. The medical research company reported $6.57 EPS for the quarter, topping the consensus estimate of $6.45 by $0.12. Thermo Fisher Scientific had a net margin of 15.05% and a return on equity of 16.92%. The firm had revenue of $12.22 billion for the quarter, compared to analysts' expectations of $11.95 billion. During the same period in the previous year, the business earned $6.10 earnings per share. Thermo Fisher Scientific's revenue for the quarter was up 7.2% compared to the same quarter last year. Research analysts forecast that Thermo Fisher Scientific Inc. will post 23.28 EPS for the current fiscal year.

Thermo Fisher Scientific Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Friday, March 13th will be given a $0.47 dividend. This represents a $1.88 annualized dividend and a yield of 0.4%. This is a positive change from Thermo Fisher Scientific's previous quarterly dividend of $0.43. The ex-dividend date is Friday, March 13th. Thermo Fisher Scientific's dividend payout ratio (DPR) is presently 10.60%.

Analysts Set New Price Targets

Several research firms recently commented on TMO. Wall Street Zen raised Thermo Fisher Scientific from a "hold" rating to a "buy" rating in a research report on Saturday, February 28th. Evercore reissued an "outperform" rating and set a $650.00 target price on shares of Thermo Fisher Scientific in a research report on Monday, January 5th. Robert W. Baird set a $653.00 price objective on shares of Thermo Fisher Scientific in a report on Friday, January 30th. TD Cowen lowered their target price on Thermo Fisher Scientific from $696.00 to $683.00 and set a "buy" rating for the company in a research note on Friday, January 30th. Finally, Barclays boosted their price target on Thermo Fisher Scientific from $625.00 to $650.00 and gave the stock an "overweight" rating in a research note on Friday, January 30th. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $632.50.

Insiders Place Their Bets

In other news, EVP Gianluca Pettiti sold 400 shares of the business's stock in a transaction on Monday, February 9th. The stock was sold at an average price of $541.20, for a total transaction of $216,480.00. Following the sale, the executive vice president directly owned 20,752 shares of the company's stock, valued at $11,230,982.40. The trade was a 1.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Marc N. Casper sold 5,000 shares of Thermo Fisher Scientific stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $512.40, for a total value of $2,562,000.00. Following the completion of the transaction, the chief executive officer directly owned 123,925 shares in the company, valued at $63,499,170. This represents a 3.88% decrease in their position. The SEC filing for this sale provides additional information. 0.33% of the stock is currently owned by corporate insiders.

Thermo Fisher Scientific Profile

Thermo Fisher Scientific NYSE: TMO is a global provider of scientific instrumentation, reagents and consumables, software, and services that support research, clinical, and industrial laboratories. The company supplies analytical instruments and laboratory equipment, life sciences reagents and kits, specialty diagnostics, and a broad range of consumables used by researchers, clinicians, and manufacturers. Its offerings also include laboratory information management and data-analysis software, as well as service solutions such as instrument maintenance, validation, and logistics that help customers run complex workflows efficiently.

Thermo Fisher operates through multiple business areas that broadly cover life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and biopharma services, including contract development and manufacturing for pharmaceutical and biotechnology companies.

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