In a significant move, Thermo Fisher Scientific Inc. (NYSE:TMO) has authorized a $4 billion stock buyback program, allowing the company to repurchase up to 2% of its outstanding shares. This decision reflects the leadership's belief that the company's shares are undervalued, aiming to enhance shareholder value.
During the third quarter, Segall Bryant & Hamill LLC increased its stake in Thermo Fisher by 117.7%, acquiring an additional 24,170 shares, bringing its total to 44,701 shares valued at approximately $27.65 million. This highlights growing institutional interest in the company, with 89.23% of its stock owned by institutional investors.
CEO Marc N. Casper recently sold 9,000 shares at an average price of $552.86, reducing his ownership by 38.12%. Despite insider selling, analysts remain optimistic, with Morgan Stanley raising its price target from $655 to $680, giving the stock an 'overweight' rating. The average price target for TMO is now $649.33, reflecting a consensus 'Moderate Buy' rating.
Thermo Fisher's recent earnings report showed a slight revenue increase of 0.2% year-over-year, with earnings per share of $5.28, beating estimates. The company continues to be a leader in life sciences solutions, analytical instruments, and biopharma services, operating in North America, Europe, and Asia-Pacific.