Update (4:15 p.m.): Updated with Monday market close information and one-year high price.
The deal is for $11.75 a share; Nordion closed at $11.53 on Monday.
"This transaction delivers value to our shareholders and is a good strategic fit for Nordion", said Nordion CEO Steve West. "We believe this partnership is beneficial to Nordion's employees and our customers, as Nordion and Sterigenics combine their global expertise, industry knowledge and the same focus on high quality standards and values. This transaction also marks the successful completion of Nordion's strategic review."Nordion is one of the world's leading producers of molybdenum-99, an isotope used for medical imaging. The stock closed up 10.76% to $11.53, up $1.12 from its previous close of $10.41, on Monday. More than 29 million shares changed hands, more than 10 times its average volume of 254,277. The stock hit a low of $11.50 for the day and holds a one-year low of $6.56. Must Read: Warren Buffett's 10 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates NORDION INC as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate NORDION INC (NDZ) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 13.2%. Since the same quarter one year prior, revenues rose by 32.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- NDZ's debt-to-equity ratio is very low at 0.08 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 4.83, which clearly demonstrates the ability to cover short-term cash needs.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Life Sciences Tools & Services industry and the overall market, NORDION INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for NORDION INC is rather high; currently it is at 52.88%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 49.79% significantly outperformed against the industry average.
- You can view the full analysis from the report here: NDZ Ratings Report
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Check Out Our Best Services for Investors
Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.