Simplicity Solutions LLC announced today that it has acquired a new stake in PerkinElmer, Inc. (NYSE:PKI), according to its most recent Form 13F filing with the U.S. Securities and Exchange Commission (SEC). The institutional investor procured 1,805 shares of PerkinElmer, a leader in medical research, valued at approximately $253,000 in the fourth quarter of last year. This move represents part of a growing trend among investors seeking to capitalize on the affordable yet promising potential offered by market leaders in medical technology.
PerkinElmer’s stock performance is also garnering attention from industry experts as evidenced by its impressive earnings results for Q4 2016, announced February 14th. The company proved its merit when it surpassed income estimates. PerkinElmer reported $1.70 earnings per share this quarter compared to an estimated $1.66 per share, beating expectations by $0.04 cents or approximately two percent. Additionally, the company had revenue of $741.20 million for the quarter while analysts estimated revenue at $1.07 billion – making their actual performance impressively over half a billion dollars less than projections.
Despite these inconsistencies between predicted and actual ratios there are still reasons for bullish investors to remain confident about PKI’s trajectory; notwithstanding current revenue volatility first impressions suggest that this renowned name is one to invest with.
Robert W Baird lowered their price target on PKI stock from $185 to $182 however they maintain an “outperform” rating pending changes within the market which may yet have an adverse impact on this stock’s value; undoubtedly larger strategic movements must be noted as well.
This conclusion becomes evident when considering other reputable Wall Street experts’ assessment of PKI holding through both its highs and lows such as those at Barclays who lowered their price projection on PerkinElmer from $145 to $140 whilst maintaining its “equal weight” rating for the company. StockNews.com representatives started their own coverage of PerkinElmer and issued a “hold” rating report on March 16th with Credit Suisse Group echoing their peers at Barclays by holding a neutral rating while reaffirming a $160 price target on shares of PKI in their recent research report released February 15th.
Overall experience informs us that is it the considered opinions of experts that guide investors to assess any deviations from predicted volumes within market trends that evidently sway investor interest at any given time. That being said, with Simplicity Solutions’ new acquisition, combined with PerkinElmer’s strong performance in Q4 2016, and favorable but cautious ratings from financial analysts, it appears that the iconic medical research firm remains an attractive choice for investment opportunities moving forward.
Investments and Insider Sales Leave PerkinElmer’s Future Uncertain
PerkinElmer Inc. has recently witnessed investment from several hedge funds and institutional investors, who have increased or reduced their stakes in the company over the last quarter. Forsta AP Fonden lifted its stake in PerkinElmer by 2.9%, while Bank of Montreal Can grew its position in shares by 136.9% during the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank also lifted its position in PerkinElmer by 25.5% during the same period and DekaBank Deutsche Girozentrale grew its holdings in PerkinElmer by 15.3%. These investments have contributed to institutional investors owning 85.22% of the company’s stock.
Despite these investments, PerkinElmer’s stock opened at $134.86 on Tuesday and has been faced with mixed reviews from brokerage firms. TheStreet raised shares of PerkinElmer from a “c+” rating to a “b” rating but Barclays lowered their price objective on PerkinElmer from $145.00 to $140.00 and set an “equal weight” rating for the company.
PerkinElmer has a market cap of $17.05 billion, a PE ratio of 29.45, a price-to-earnings-growth ratio of 0.57, and a beta of 1.11. Its dividend payout ratio is currently at 6.11%, with shareholders set to receive a quarterly dividend payment on Friday, May 12th.
In related news, insiders Daniel R Tereau and Maxwell Krakowiak sold thousands of shares worth millions within weeks apart this year – something which didn’t reflect well with some investors but seemed normal according to an analysis conducted by BusinessInsider.com.
With multiple investments coming into play and internal sales taking place at various points this year,the shifting trading patterns suggest that it’s not yet clear where the stock is headed.