Leading diagnostic tools maker Danaher (NYSE:DHR) is no longer interested in acquiring Catalent (NYSE:CTLT), Bloomberg reported. The move comes after Catalent provided a business update on Friday, April 14, which dragged its stock price significantly lower.
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The life sciences company said it expects productivity issues and higher-than-expected costs at three of its facilities to significantly impact its Q3 financials and the full-year outlook. Following the announcement, CTLT stock closed about 27% lower on April 14. Catalent will announce its third-quarter earnings on Tuesday, May 9.
Earlier in February, a Bloomberg report highlighted that Danaher was interested in buying CTLT at a significant premium. However, given the considerable decline in CTLT stock and near-term operational challenges, Danaher’s move appears correct.
Concurrently, the company, in an SEC filing on Monday, announced that its co-founder and Chairman, Steven Rales bought 125,437 shares of DHR. The company’s top insiders buying shares signify their confidence in the company’s future prospects, which is a positive development for DHR’s shareholders.
It’s worth highlighting here that our Insider Trading Activity tool shows that DHR’s top insiders bought shares worth $22.8M in the last quarter.
While the company’s top insiders are accumulating its stock, let’s check what analysts recommend about DHR.
Is DHR Stock a Buy?
DHR stock has received 11 Buy and one Hold recommendations from Wall Street analysts, implying a Strong Buy consensus rating. At the same time, these analysts have a price target of $302.58 on DHR, indicating 18.31% upside potential.
Besides for analysts, DHR stock has positive signals from insiders and hedge funds. It sports a maximum Smart Score of “Perfect 10” on TipRanks.
