Stock Traders Buy Large Volume of Danaher Call Options (DHR)

Danaher Co. (NYSE:DHR) was the target of unusually large options trading on Thursday. Traders purchased 3,999 call options on the company. This is an increase of 1,150% compared to the typical volume of 320 call options.

Several equities research analysts have issued reports on the company. Zacks Investment Research raised Danaher from a “hold” rating to a “buy” rating and set a $119.00 price target for the company in a report on Wednesday, September 19th. Bank of America set a $113.00 price target on Danaher and gave the company a “buy” rating in a report on Thursday, July 19th. Morgan Stanley lifted their target price on Danaher from $120.00 to $122.00 and gave the stock an “overweight” rating in a report on Friday, July 20th. Royal Bank of Canada lifted their target price on Danaher to $107.00 and gave the stock a “positive” rating in a report on Thursday, July 19th. They noted that the move was a valuation call. Finally, ValuEngine raised Danaher from a “hold” rating to a “buy” rating in a report on Thursday, July 12th. Sixteen investment analysts have rated the stock with a buy rating, Danaher has a consensus rating of “Buy” and a consensus price target of $111.28.

Danaher stock traded down $0.02 during midday trading on Friday, reaching $106.98. The company’s stock had a trading volume of 1,919,212 shares, compared to its average volume of 2,363,236. Danaher has a 52 week low of $83.81 and a 52 week high of $110.13. The company has a quick ratio of 1.07, a current ratio of 1.50 and a debt-to-equity ratio of 0.41. The stock has a market cap of $76.04 billion, a PE ratio of 26.55, a P/E/G ratio of 2.08 and a beta of 1.01.

Danaher (NYSE:DHR) last released its earnings results on Thursday, July 19th. The conglomerate reported $1.15 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.09 by $0.06. The firm had revenue of $4.98 billion for the quarter, compared to analysts’ expectations of $4.91 billion. Danaher had a return on equity of 11.55% and a net margin of 13.84%. The business’s revenue for the quarter was up 10.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.99 earnings per share. As a group, analysts expect that Danaher will post 4.49 earnings per share for the current year.

The company also recently declared a quarterly dividend, which will be paid on Friday, October 26th. Stockholders of record on Friday, September 28th will be issued a dividend of $0.16 per share. This represents a $0.64 annualized dividend and a dividend yield of 0.60%. The ex-dividend date of this dividend is Thursday, September 27th. Danaher’s dividend payout ratio (DPR) is currently 15.88%.

In other news, Chairman Mitchell P. Rales bought 1,080 shares of the firm’s stock in a transaction that occurred on Tuesday, July 31st. The stock was acquired at an average cost of $102.32 per share, with a total value of $110,505.60. Following the completion of the purchase, the chairman now owns 1,827,953 shares of the company’s stock, valued at $187,036,150.96. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, EVP William K. Daniel sold 103,086 shares of the firm’s stock in a transaction on Friday, August 10th. The shares were sold at an average price of $100.63, for a total transaction of $10,373,544.18. Following the completion of the transaction, the executive vice president now directly owns 167,080 shares of the company’s stock, valued at $16,813,260.40. The disclosure for this sale can be found here. Over the last three months, insiders have sold 299,961 shares of company stock valued at $30,619,691. 11.90% of the stock is owned by company insiders.

Several large investors have recently added to or reduced their stakes in DHR. BlackRock Inc. lifted its stake in shares of Danaher by 6.2% in the first quarter. BlackRock Inc. now owns 43,526,564 shares of the conglomerate’s stock worth $4,261,685,000 after acquiring an additional 2,542,198 shares during the period. FMR LLC lifted its stake in shares of Danaher by 10.3% in the second quarter. FMR LLC now owns 21,011,026 shares of the conglomerate’s stock worth $2,073,369,000 after acquiring an additional 1,963,116 shares during the period. Putnam Investments LLC lifted its stake in shares of Danaher by 0.8% in the second quarter. Putnam Investments LLC now owns 6,385,003 shares of the conglomerate’s stock worth $630,072,000 after acquiring an additional 51,596 shares during the period. Aristotle Capital Management LLC lifted its stake in shares of Danaher by 3.5% in the first quarter. Aristotle Capital Management LLC now owns 4,451,816 shares of the conglomerate’s stock worth $435,877,000 after acquiring an additional 150,343 shares during the period. Finally, Findlay Park Partners LLP lifted its stake in shares of Danaher by 4.8% in the second quarter. Findlay Park Partners LLP now owns 3,825,000 shares of the conglomerate’s stock worth $377,451,000 after acquiring an additional 175,000 shares during the period. Institutional investors own 76.90% of the company’s stock.

About Danaher

Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide. The company's Life Sciences segment provides laser scanning, compound, surgical, and other stereo microscopes. This segment also offers filtration, separation, and purification technologies to the biopharmaceutical, food and beverage, medical, aerospace, microelectronics, and general industrial sectors.

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