Taking on analysts’ expectations and winning: PerkinElmer Inc. (PKI)

PerkinElmer Inc. (NYSE: PKI) stock fell -4.18% on Tuesday to $134.87 against a previous-day closing price of $140.75. With 0.77 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.86 million shares. During the session, the Diagnostics & Research company that operates in wider Healthcare sector, reached to the highest price of $140.97 whereas the lowest price it dropped to was $133.66. The 52-week range on PKI shows that it touched its highest point at $190.56 and its lowest point at $113.46 during that stretch. It currently has a 1-year price target of $160.57. With its current market cap of 16.44 billion, PKI has annualized dividend of $0.28 while the current yield stands at 0.21%. Beta for the stock currently stands at 1.11.

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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 PKI was up-trending over the past week, with a rise of 1.80%, but this was down by -5.12% over a month. Three-month performance surged to 3.31% while six-month performance fell -7.87%. The stock lost -22.88% in the past year, while it has lost -3.82% so far this year. A look at the trailing 12-month EPS for PKI yields 4.86 with Next year EPS estimates of 5.91. For the next quarter, that number is 1.62. This implies an EPS growth rate of 24.50% for this year and -25.16% for next year. EPS is expected to decline by -13.87% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 32.80%.

Float and Shares Shorts:

At present, 126.16 million PKI shares are outstanding with a float of 126.05 million shares on hand for trading. On Oct 13, 2022, short shares totaled 5.45 million, which was 4.32% higher than short shares on Sep 14, 2022. In addition to Dr. Prahlad R. Singh Ph.D. as the firm’s CEO, Pres & Director, Mr. Tajinder Vohra serves as its Sr. VP of Global Operations.

Institutional Ownership:

Through their ownership of 90.72% of PKI’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 58.59% of PKI, in contrast to 29.28% held by mutual funds. Shares owned by individuals account for 2.15%. As the largest shareholder in PKI with 11.33% of the stake, Capital Research & Management Co holds 14,311,696 shares worth 14,311,696. A second-largest stockholder of PKI, T. Rowe Price Investment Manageme, holds 13,704,435 shares, controlling over 10.85% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in PKI, holding 13,563,889 shares or 10.74% stake. With a 4.65% stake in PKI, the T Rowe Price Capital Appreciation is the largest stakeholder. A total of 5,868,147 shares are owned by the mutual fund manager. The American Funds AMCAP Fund, which owns about 4.29% of PKI stock, is the second-largest Mutual Fund holder. It holds 5,415,726 shares valued at 759.39 million. Vanguard Total Stock Market Index holds 3.04% of the stake in PKI, owning 3,844,726 shares worth 539.11 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PKI since 13 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 8 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With PKI analysts setting a high price target of $178.00 and a low target of $140.00, the average target price over the next 12 months is $157.58. Based on these targets, PKI could surge 31.98% to reach the target high and rise by 3.8% to reach the target low. Reaching the average price target will result in a growth of 16.84% 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. PKI will report FY 2022 earnings on 01/30/2024. Analysts have provided yearly estimates in a range of $7.92 being high and $6.84 being low. For PKI, this leads to a yearly average estimate of $7.79. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. PerkinElmer Inc. surprised analysts by $0.07 when it reported $1.51 EPS against a consensus estimate of $1.44. The surprise factor in the prior quarter was $0.31. Based on analyst estimates, the high estimate for the next quarter is $1.69 and the low estimate is $1.34. The average estimate for the next quarter is thus $1.64.

Summary of Insider Activity:

Insiders traded PKI stock several times over the past three months with 8 Buys and 18 Sells. In these transactions, 64,894 shares were bought while 64,894 shares were sold. The number of buy transactions has increased to 34 while that of sell transactions has risen to 46 over the past year. The total number of shares bought during that period was 169,394 while 119,677 shares were sold.

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