Integer (ITGR) shares ended the last trading session 20.2% higher at $121.21. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 6% gain over the past four weeks.
The sharp rise in ITGR shares can be attributed to a Wall Street Journal report stating that private equity firm KKR is nearing a deal to acquire the medical device outsourcing company and take it private. According to the report, the transaction could be announced as early as next week and values Integer Holdings at approximately $127 per share. The news fueled investor optimism over a potential takeover premium, prompting a sharp rally in the stock and a temporary trading halt due to volatility.
This medical device outsource manufacturer is expected to post quarterly earnings of $1.38 per share in its upcoming report, which represents a year-over-year change of -11%. Revenues are expected to be $452.46 million, down 5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Integer, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ITGR going forward to see if this recent jump can turn into more strength down the road.
Integer is part of the Zacks Medical - Instruments industry. Stereotaxis Inc. (STXS), another stock in the same industry, closed the last trading session 5.3% lower at $1.26. STXS has returned -25.7% in the past month.
For Stereotaxis, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.03. This represents a change of +40% from what the company reported a year ago. Stereotaxis currently has a Zacks Rank of #3 (Hold).
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