Thermo Fisher Scientific (NYSE:TMO) Trading 8.2% Higher - Should You Buy?

Key Points

• Thermo Fisher Scientific's stock price surged by 8.2% during trading, reaching a high of $524.88, following a previous close of $485.02, with trading volume increasing by 29% from the average.
• The company reported earnings of $5.36 per share for the last quarter, surpassing analyst expectations and demonstrating a revenue increase of 2.9% from the prior year.
• Thermo Fisher announced a quarterly dividend of $0.43 per share, with a low payout ratio of 9.95% and an annualized yield of 0.3%, with the ex-dividend date set for September 15th.

Thermo Fisher Scientific Inc. (NYSE:TMO - Get Free Report)'s stock price shot up 8.2% during trading on Wednesday . The stock traded as high as $524.88 and last traded at $524.96. 3,112,706 shares traded hands during mid-day trading, an increase of 29% from the average session volume of 2,417,730 shares. The stock had previously closed at $485.02.

Wall Street Analysts Forecast Growth

Several research firms recently commented on TMO. William Blair began coverage on Thermo Fisher Scientific in a research note on Monday, August 18th. They issued an "outperform" rating on the stock. Wall Street Zen cut Thermo Fisher Scientific from a "buy" rating to a "hold" rating in a research note on Sunday, September 7th. Robert W. Baird boosted their price target on Thermo Fisher Scientific from $553.00 to $567.00 and gave the stock an "outperform" rating in a research note on Thursday, July 24th. Royal Bank Of Canada set a $561.00 price target on Thermo Fisher Scientific and gave the stock an "outperform" rating in a research note on Tuesday, September 2nd. Finally, UBS Group boosted their price target on Thermo Fisher Scientific from $460.00 to $500.00 and gave the stock a "neutral" rating in a research note on Thursday, July 24th. Fifteen equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, Thermo Fisher Scientific presently has a consensus rating of "Moderate Buy" and a consensus price target of $583.53.

Thermo Fisher Scientific Price Performance

The firm has a market capitalization of $200.77 billion, a price-to-earnings ratio of 30.75, a PEG ratio of 2.51 and a beta of 0.75. The business has a 50-day moving average price of $478.98 and a two-hundred day moving average price of $446.98. The company has a current ratio of 1.93, a quick ratio of 1.50 and a debt-to-equity ratio of 0.65.

Thermo Fisher Scientific (NYSE:TMO - Get Free Report) last issued its quarterly earnings data on Wednesday, July 23rd. The medical research company reported $5.36 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $5.22 by $0.14. Thermo Fisher Scientific had a return on equity of 16.82% and a net margin of 15.24%.The business had revenue of $10.86 billion during the quarter, compared to analyst estimates of $10.68 billion. During the same period in the prior year, the company posted $5.37 EPS. The business's revenue for the quarter was up 2.9% compared to the same quarter last year. Thermo Fisher Scientific has set its Q3 2025 guidance at 5.460-5.510 EPS. FY 2025 guidance at 22.220-22.840 EPS. As a group, research analysts forecast that Thermo Fisher Scientific Inc. will post 23.28 EPS for the current year.

Thermo Fisher Scientific Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Monday, September 15th will be paid a dividend of $0.43 per share. This represents a $1.72 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date of this dividend is Monday, September 15th. Thermo Fisher Scientific's dividend payout ratio (DPR) is presently 9.95%.

Insider Buying and Selling at Thermo Fisher Scientific

In other news, EVP Gianluca Pettiti sold 400 shares of the stock in a transaction on Friday, July 25th. The stock was sold at an average price of $479.98, for a total transaction of $191,992.00. Following the completion of the sale, the executive vice president owned 22,367 shares in the company, valued at approximately $10,735,712.66. This represents a 1.76% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Joseph R. Holmes sold 385 shares of the stock in a transaction on Friday, August 29th. The shares were sold at an average price of $492.63, for a total value of $189,662.55. Following the sale, the chief accounting officer owned 2,319 shares of the company's stock, valued at $1,142,408.97. This trade represents a 14.24% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 30,066 shares of company stock valued at $14,182,963. 0.33% of the stock is owned by corporate insiders.

Institutional Trading of Thermo Fisher Scientific

Hedge funds have recently modified their holdings of the business. Mondrian Investment Partners LTD lifted its holdings in shares of Thermo Fisher Scientific by 146.1% in the first quarter. Mondrian Investment Partners LTD now owns 214,506 shares of the medical research company's stock valued at $106,738,000 after purchasing an additional 127,357 shares in the last quarter. Caledonia Investments PLC lifted its holdings in shares of Thermo Fisher Scientific by 11.5% in the second quarter. Caledonia Investments PLC now owns 111,767 shares of the medical research company's stock valued at $45,299,000 after purchasing an additional 11,500 shares in the last quarter. Foresight Group Ltd Liability Partnership lifted its holdings in shares of Thermo Fisher Scientific by 3,242.7% in the first quarter. Foresight Group Ltd Liability Partnership now owns 58,497 shares of the medical research company's stock valued at $29,113,000 after purchasing an additional 56,747 shares in the last quarter. Advisors Capital Management LLC lifted its holdings in shares of Thermo Fisher Scientific by 6.7% in the first quarter. Advisors Capital Management LLC now owns 127,011 shares of the medical research company's stock valued at $63,201,000 after purchasing an additional 7,967 shares in the last quarter. Finally, New England Research & Management Inc. raised its holdings in shares of Thermo Fisher Scientific by 28.6% during the second quarter. New England Research & Management Inc. now owns 2,548 shares of the medical research company's stock worth $1,033,000 after acquiring an additional 567 shares in the last quarter. Hedge funds and other institutional investors own 89.23% of the company's stock.

About Thermo Fisher Scientific

Thermo Fisher Scientific Inc provides life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and biopharma services in the North America, Europe, Asia-Pacific, and internationally. The company's Life Sciences Solutions segment offers reagents, instruments, and consumables for biological and medical research, discovery, and production of drugs and vaccines, as well as diagnosis of infections and diseases; and solutions include biosciences, genetic sciences, and bio production to pharmaceutical, biotechnology, agricultural, clinical, healthcare, academic, and government markets.

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