Danaher Corporation (DHR) looking to reclaim success with recent performance

Danaher Corporation (NYSE: DHR) stock jumped 0.15% on Friday to $288.95 against a previous-day closing price of $288.53. With 2.02 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.43 million shares. During the session, the Diagnostics & Research company that operates in wider Healthcare sector, reached to the highest price of $289.09 whereas the lowest price it dropped to was $286.11. The 52-week range on DHR shows that it touched its highest point at $333.96 and its lowest point at $233.71 during that stretch. It currently has a 1-year price target of $325.52. With its current market cap of 201.96 billion, DHR has annualized dividend of $1.00 while the current yield stands at 0.35%. Beta for the stock currently stands at 0.86.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DHR was down-trending over the past week, with a drop of -0.02%, but this was up by 11.12% over a month. Three-month performance surged to 12.59% while six-month performance fell -1.86%. The stock lost -5.45% in the past year, while it has lost -12.18% so far this year. A look at the trailing 12-month EPS for DHR yields 8.49 with Next year EPS estimates of 10.75. For the next quarter, that number is 2.27. This implies an EPS growth rate of 73.90% for this year and 2.53% for next year. EPS is expected to grow by 10.45% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 22.50%.

Float and Shares Shorts:

At present, 726.70 million DHR shares are outstanding with a float of 646.85 million shares on hand for trading. On Jul 14, 2022, short shares totaled 4.61 million, which was 0.63% higher than short shares on Jun 14, 2022. In addition to Mr. Steven M. Rales as the firm’s Co-Founder & Chairman, Mr. Rainer M. Blair serves as its Pres, CEO & Director.

Institutional Ownership:

Through their ownership of 80.55% of DHR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 45.45% of DHR, in contrast to 34.71% held by mutual funds. Shares owned by individuals account for 16.64%. As the largest shareholder in DHR with 6.67% of the stake, The Vanguard Group, Inc. holds 48,498,042 shares worth 48,498,042. A second-largest stockholder of DHR, BlackRock Fund Advisors, holds 28,193,175 shares, controlling over 3.88% of the firm’s shares. T. Rowe Price Associates, Inc. is the third largest shareholder in DHR, holding 28,092,001 shares or 3.86% stake. With a 2.65% stake in DHR, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 19,291,375 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 1.97% of DHR stock, is the second-largest Mutual Fund holder. It holds 14,322,926 shares valued at 3.63 billion. SPDR S&P 500 ETF Trust holds 0.96% of the stake in DHR, owning 6,989,300 shares worth 1.77 billion.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DHR since 22 analysts follow the stock currently. There are 16 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With DHR analysts setting a high price target of $350.00 and a low target of $275.00, the average target price over the next 12 months is $323.94. Based on these targets, DHR could surge 21.13% to reach the target high and fall by -4.83% to reach the target low. Reaching the average price target will result in a growth of 12.11% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. DHR will report FY 2022 earnings on 01/31/2023. Analysts have provided yearly estimates in a range of $11.14 being high and $10.25 being low. For DHR, this leads to a yearly average estimate of $10.44. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Danaher Corporation surprised analysts by $0.41 when it reported $2.76 EPS against a consensus estimate of $2.35. The surprise factor in the prior quarter was $0.09. Based on analyst estimates, the high estimate for the next quarter is $2.60 and the low estimate is $2.19. The average estimate for the next quarter is thus $2.27.

Summary of Insider Activity:

Insiders traded DHR stock several times over the past three months with 14 Buys and 3 Sells. In these transactions, 8,783 shares were bought while 947 shares were sold. The number of buy transactions has increased to 30 while that of sell transactions has risen to 58 over the past year. The total number of shares bought during that period was 272,847 while 1,387,982 shares were sold.

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