Stock Markets
Nordson acquires Atrion for $800 million
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WESTLAKE, Ohio – Nordson (NASDAQ:) Corporation (NASDAQ:NDSN) has announced the definitive agreement to purchase Atrion Corporation (NASDAQ:ATRI), a specialist in medical infusion and cardiovascular solutions, for $460 per share in cash. The transaction, valued at 15 times Atrion’s projected 2024 EBITDA, inclusive of anticipated synergies, is set to broaden Nordson’s medical portfolio and is expected to close before the end of Nordson’s fiscal year 2024, subject to regulatory and shareholder approval.
Atrion, headquartered in Allen, Texas, reported annual revenues of approximately $169 million in 2023. The company operates three specialized FDA registered manufacturing facilities in the United States. The acquisition includes Atrion’s Halkey Roberts, Atrion Medical, and Quest Medical businesses, which are poised to significantly expand Nordson’s market presence in infusion and cardiovascular therapies.
Nordson’s president and CEO, Sundaram Nagarajan, remarked on the alignment of the acquisition with Nordson’s long-term growth strategy, driven by aging populations, increased healthcare spending, and a shift towards minimally-invasive surgical techniques. Stephen Lovass, Nordson’s executive vice president, also noted the strategic fit of Atrion’s product and patent portfolios, as well as its skilled workforce.
The acquisition price of $460.00 per share represents a total enterprise value of approximately $800 million. Nordson plans to fund the transaction through cash on hand and newly issued debt. Morgan Stanley & Co. LLC served as the financial advisor, while Davis Polk & Wardwell LLP provided legal counsel to Nordson for this transaction.
Nordson, founded in 1954 and based in Westlake, Ohio, is a precision technology company with global operations in over 35 countries. The company’s growth strategy focuses on delivering high growth with leading margins and returns across a diverse set of end markets, including consumer non-durable, medical, electronics, and industrial.
The information in this article is based on a press release statement from Nordson Corporation.
InvestingPro Insights
As Nordson Corporation (NASDAQ:NDSN) gears up for the strategic acquisition of Atrion Corporation, the financial community is closely monitoring Nordson’s performance metrics. According to real-time data from InvestingPro, Nordson boasts an impressive market capitalization of $13.63 billion, underscoring its financial robustness in the sector. With a Price/Earnings (P/E) Ratio of 28.36 and a slightly adjusted P/E Ratio for the last twelve months as of Q2 2024 at 28.19, the company’s valuation is reflective of its earnings potential.
Investors are particularly interested in Nordson’s gross profit margin, which stands at a robust 55.01% for the last twelve months as of Q2 2024. This figure highlights the company’s efficiency in managing its cost of goods sold and its ability to generate substantial profit from its revenues. Moreover, Nordson’s long-standing commitment to shareholder returns is evident in its track record of raising its dividend for 31 consecutive years, a testament to its stable financial health and confidence in future growth.
Two noteworthy InvestingPro Tips for Nordson include its impressive gross profit margins and its consistent dividend payments over 45 consecutive years, signaling a reliable income stream for investors. For those seeking a deeper dive into Nordson’s financials and future outlook, InvestingPro offers additional tips. There are 10 more InvestingPro Tips available, which can provide further insights into Nordson’s operational performance and stock valuation. Investors interested in these exclusive tips can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
With the acquisition set to expand Nordson’s footprint in the medical sector, these financial metrics and expert tips serve as valuable tools for investors to assess the company’s current standing and future prospects. As the deal progresses towards closure, these insights will be crucial in understanding the impact on Nordson’s market position and financial performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Stock Markets
Five9 stock hits 52-week low at $28.74 amid market challenges
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In a turbulent market environment, Five9 (NASDAQ:) Inc’s stock has touched a 52-week low, reaching a price level of $28.74. This significant downturn reflects a broader trend for the cloud software company, which has seen its shares plummet by -58.79% over the past year. Investors are closely monitoring Five9’s performance as it navigates through a period of heightened volatility and shifting industry dynamics, which have contributed to the stock’s current valuation at this low point. The company’s efforts to rebound from this position will be under scrutiny in the coming quarters as market participants look for signs of a strategic turnaround or further indications of market pressures.
In other recent news, Five9 Inc . has achieved an annual revenue run rate exceeding $1 billion in Q2, a significant milestone despite lowering its annual revenue guidance by 3.8% due to customer budget constraints. The company’s adjusted EBITDA margin rose to 17% of revenue, contributing to a strong operating cash flow of $126 million. The company also confirmed plans to reduce its global workforce by approximately 7% by the end of 2024, a strategic move projected to cost between $12 million and $15 million.
Five9’s recent acquisition of Acqueon, a firm specializing in proactive outbound omnichannel customer engagement, aims to expand its AI offerings and bolster its growth. This move is in line with the company’s focus on managing expenses and improving profitability, with initiatives like FedRAMP and expansion into India anticipated to improve gross margins.
In their analysis, Piper Sandler maintained an Overweight rating for Five9, with a steady price target of $47.00, while Needham and BTIG both maintained a Buy rating with price targets of $48.00 and $45.00 respectively. These ratings reflect the firms’ confidence in Five9’s strategic positioning and potential for growth, despite the current challenges and workforce reduction.
InvestingPro Insights
Amid the current market conditions, Five9 Inc’s recent performance can be put into perspective with select data from InvestingPro. The company’s market capitalization stands at roughly $2.15 billion, indicating the size and scale of the business amidst its challenges. Despite the stock’s decline, analysts are showing a hint of optimism, with 20 analysts having revised their earnings estimates upwards for the upcoming period. This could signal a potential turnaround in sentiment or underlying business performance.
Importantly, Five9’s liquid assets are reported to surpass short-term obligations, suggesting that the company maintains a degree of financial flexibility to navigate its current difficulties. Furthermore, while the stock is trading near its 52-week low, it’s worth noting that the relative strength index (RSI) suggests the stock is in oversold territory, which can sometimes precede a rebound in share price. Investors looking for comprehensive analysis and additional InvestingPro Tips on Five9 can find more insights, including 14 other tips, at https://www.investing.com/pro/FIVN.
In terms of financial health, the company operates with a moderate level of debt and is expected to become profitable this year, according to analysts’ predictions. These elements may offer some solace to investors considering the stock’s substantial price fall over the last year. For those seeking a deeper dive into Five9’s valuation and future prospects, the InvestingPro platform provides a fair value estimate of $45.04, which is considerably higher than the current trading price, suggesting potential undervaluation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Stock Markets
TD Cowen maintains Buy on Terns Pharmaceuticals
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TD Cowen reiterated its Buy rating on shares of Terns Pharmaceuticals (NASDAQ:TERN), following the company’s investor call. The call was held to manage expectations for the upcoming Phase 1/2 CARDINAL study data for chronic myeloid leukemia (CML). The firm noted the challenges in measuring the efficacy endpoint (EP) due to disease progression and the absence of treatment switch guidelines, which makes major molecular response (MMR) a challenging efficacy endpoint for Phase 1/2 trials.
The interim Phase 1/2 data aims to evaluate descriptive efficacy signals, considering patients’ baseline BCR-ABL levels and treatment history. The analyst highlighted that the once-daily (QD) dosing and the lack of food effect could potentially enhance the quality of life for patients compared to other allosteric tyrosine kinase inhibitors (TKIs).
Terns Pharmaceuticals has been focusing on the development of improved treatment options for CML. The company’s approach to dosing, which does not require food intake, may offer a more convenient alternative for patients, potentially leading to better adherence and outcomes.
The topline data from the 6-month Phase 1/2 CARDINAL study is anticipated to be available in 2025. This data will provide further insights into the treatment’s efficacy and safety, which are critical factors in the ongoing development and potential approval process.
Investors and stakeholders in Terns Pharmaceuticals are expected to closely monitor the progress of the CARDINAL study, as it could have a significant impact on the company’s future prospects and position in the CML treatment landscape.
In other recent news, Terns Pharmaceuticals has experienced significant developments. The biopharmaceutical company reported robust earnings and revenue results, with Mizuho Securities maintaining an Outperform rating on Terns shares, citing strong enthusiasm for the company’s drug, TERN-701, a potential treatment for chronic myeloid leukemia.
The firm expects the first interim Phase 1 CARDINAL study data for TERN-701 in December.
Terns also announced the appointment of Elona Kogan as its new chief legal officer, a move that underscores the company’s strategic development and pipeline advancement.
The company also secured an extension of its office lease in Foster City, California, through 2027, reflecting Terns Pharmaceuticals’ operational stability and long-term planning.
In terms of clinical trials, Terns has made progress in its ongoing Phase 1 study of TERN-701, with interim findings suggesting the drug can be administered once daily with or without food.
This development, coupled with the forthcoming Phase 1 data for another of Terns’ drugs, TERN-601—an oral GLP-1 receptor agonist for obesity—expected next month, underscores the company’s commitment to innovative therapies.
These recent developments, from financial performance to executive appointments and clinical trials, highlight Terns Pharmaceuticals’ ongoing efforts to advance its strategic objectives and deliver on its mission. The company’s activities are closely watched by investors and industry analysts, including those from Mizuho Securities, who continue to support the company’s potential.
InvestingPro Insights
As Terns Pharmaceuticals (NASDAQ:TERN) navigates the complexities of its Phase 1/2 CARDINAL study, investors are keeping a keen eye on the company’s financial health and stock performance. According to InvestingPro, Terns holds more cash than debt, which is a positive signal for financial stability. Additionally, with five analysts revising their earnings upwards for the upcoming period, there is a sense of optimism about the company’s potential performance.
However, it’s important to note that Terns is not currently profitable and has been quickly burning through cash, which may raise concerns about long-term sustainability. The company’s P/E Ratio stands at -5.71, reflecting these profitability challenges. Despite these hurdles, Terns has managed a 1 Year Price Total Return of 45.42%, indicating some investor confidence in the company’s growth prospects. The anticipated fair value from analysts stands at 15 USD, while the InvestingPro Fair Value is calculated at 5.8 USD, highlighting a divergence in valuation perspectives.
For those looking for more in-depth analysis, additional InvestingPro Tips on Terns Pharmaceuticals can be found at https://www.investing.com/pro/TERN, offering a comprehensive look at the company’s financial details and stock performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Stock Markets
Macron discussed support for Ukraine and Gaza ceasefire with Germany’s Scholz
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PARIS (Reuters) – French President Emmanuel Macron discussed the importance of maintaining support for Ukraine and the need for a ceasefire in Gaza during talks on Friday with German Chancellor Olaf Scholz, said the French presidency.
Regarding Ukraine, the two leaders expressed their determination to support the country “for as long and as intensively as necessary” in its war against Russia, the Elysee said.
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