Liberator Medical (LBMH) Stock Soars on C. R. Bard Acquisition
NEW YORK (TheStreet) -- LiberatorMedicalHoldings (LBMH) stock is soaring 25.56% to $3.34 on heavy trading volume on Friday, after the medical supplies company announced it was being acquired by C. R. Bard (BCR).
C. R. Bard, a medical supplies designer and manufacturer based in Murray Hill, NJ, will buy Liberator Medical for $3.35 per share, or about $181 million, the companies announced on Friday.
"We expect that this transaction will create attractive long-term synergies and opportunities for our business partners and customers from the combined companies' ability to offer a broader portfolio of products," Liberator CEO Mark Libratore said in a statement.
The deal is expected to close in the first quarter of 2016, according to Liberator Medical.
C. R. Bard stock is also surging by 3.34% to $188.03 in early afternoon trading on Friday.
So far today, 6.52 million shares of Liberator Medical have traded, versus its 30-day average of about 55,800 shares.
Separately, TheStreet Ratings team rates LIBERATOR MEDICAL HLDGS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate LIBERATOR MEDICAL HLDGS INC (LBMH) a BUY. This is driven by multiple 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, expanding profit margins and notable return on equity. We feel its 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 3.5%. Since the same quarter one year prior, revenues slightly increased by 9.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- LBMH's debt-to-equity ratio is very low at 0.04 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, LBMH has a quick ratio of 1.62, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for LIBERATOR MEDICAL HLDGS INC is rather high; currently it is at 61.15%. Regardless of LBMH's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LBMH's net profit margin of 8.19% compares favorably to the industry average.
- LIBERATOR MEDICAL HLDGS INC's earnings per share declined by 25.0% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. Despite the past stability of earnings, the consensus estimate anticipates a weakening in earnings. During the past fiscal year, LIBERATOR MEDICAL HLDGS INC increased its bottom line by earning $0.15 versus $0.14 in the prior year. This year, the market expects earnings to be in line with last year ($0.15 versus $0.15).
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Food & Staples Retailing industry and the overall market, LIBERATOR MEDICAL HLDGS INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- You can view the full analysis from the report here: LBMH
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.