Varex Imaging (NASDAQ:VREX) Hits New 52-Week High - What's Next?

Key Points

• Varex Imaging shares reached a new 52-week high of $18.65, trading near $18.48. The stock’s consensus analyst rating remains “Hold,” with an average price target of $16.88.
• The company’s latest quarterly results exceeded expectations on earnings, reporting $0.31 EPS versus the $0.21 consensus, while revenue of $210.5 million fell short of the $215.5 million estimate.
• Insiders recently reduced their holdings, including the CFO’s sale of 130,000 shares for about $2.4 million; insiders own 4.6% of the company, while several institutional investors initiated new positions.

Shares of Varex Imaging (NASDAQ:VREX - Get Free Report) reached a new 52-week high during trading on Wednesday. The company traded as high as $18.65 and last traded at $18.4770, with a volume of 106 shares. The stock had previously closed at $18.47.

Analyst Ratings Changes

VREX has been the topic of a number of research analyst reports. Zacks Research downgraded shares of Varex Imaging from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 27th. Sidoti reissued a "neutral" rating and issued a $19.00 price objective on shares of Varex Imaging in a research note on Monday, August 10th. CJS Securities lowered shares of Varex Imaging from an "outperform" rating to a "market perform" rating in a research report on Monday, August 17th. Weiss Ratings raised shares of Varex Imaging from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Wednesday, August 26th. Finally, Oppenheimer downgraded shares of Varex Imaging from an "outperform" rating to a "market perform" rating in a report on Monday, August 10th. Seven research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, Varex Imaging currently has a consensus rating of "Hold" and an average target price of $16.88.

Varex Imaging Stock Performance

The firm has a market capitalization of $776.96 million, a P/E ratio of 35.49 and a beta of 0.96. The company has a 50-day moving average of $16.66 and a 200-day moving average of $12.83. The company has a current ratio of 3.38, a quick ratio of 1.53 and a debt-to-equity ratio of 0.64.

Varex Imaging (NASDAQ:VREX - Get Free Report) last released its quarterly earnings results on Monday, August 10th. The company reported $0.31 EPS for the quarter, beating analysts' consensus estimates of $0.21 by $0.10. The firm had revenue of $210.50 million for the quarter, compared to analyst estimates of $215.50 million. Varex Imaging had a return on equity of 9.19% and a net margin of 2.55%. On average, equities analysts anticipate that Varex Imaging will post 1.04 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Varex Imaging news, CFO Shubham Maheshwari sold 130,000 shares of the stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $18.46, for a total transaction of $2,399,800.00. Following the completion of the sale, the chief financial officer owned 139,972 shares of the company's stock, valued at approximately $2,583,883.12. This represents a 48.15% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Jay K. Kunkel sold 8,121 shares of the firm's stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $18.48, for a total transaction of $150,076.08. Following the transaction, the director owned 15,329 shares of the company's stock, valued at approximately $283,279.92. The trade was a 34.63% decrease in their position. The SEC filing for this sale provides additional information. 4.60% of the stock is owned by insiders.

Institutional Investors Weigh In On Varex Imaging

A number of institutional investors have recently modified their holdings of the company. Rockefeller Capital Management L.P. bought a new position in Varex Imaging during the fourth quarter worth $27,000. Integrated Wealth Concepts LLC bought a new stake in Varex Imaging during the second quarter valued at $32,000. Legal & General Group Plc bought a new stake in Varex Imaging during the second quarter valued at $43,000. AXQ Capital LP acquired a new stake in Varex Imaging during the 2nd quarter worth about $116,000. Finally, The Manufacturers Life Insurance Company acquired a new stake in Varex Imaging during the 2nd quarter worth about $126,000.

Varex Imaging Company Profile

Varex Imaging Corporation NASDAQ: VREX develops and manufactures X-ray imaging components used by medical, industrial and security equipment manufacturers. Its products are incorporated into systems that support diagnostic imaging, radiation therapy, inspection and threat detection.

The company's portfolio includes X-ray tubes, digital image detectors, high-voltage generators, image-processing software and other imaging subsystems. These products are used in applications such as computed tomography, radiography, fluoroscopy, mammography, dental and veterinary imaging, as well as industrial non-destructive testing and security screening.

Varex Imaging was established as an independent public company in 2017 through a spin-off from Varian Medical Systems.

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