Why Teledyne Technologies (TDY) Stock Is Higher Today

NEW YORK (TheStreet) -- Shares of Teledyne Technologies Inc  (TDY)   are up 2.27% to $99.61 after the company announced its acquisition late yesterday of all outstanding shares of Bolt Technology (BOLT) for $22 per share payable in cash.

The digital imaging technology and electronics company has agreed to buy Bolt Technology for about $171 million. 

This morning, law firm Tripp Levy PLLC announced its investigation into the acquisition of Bolt Technology concerning the possible breaches of fiduciary duty and other violations of state law by the board of directors of Bolt.

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Tripp Levy will investigate whether the merger was an adequate auction process, and if Teledyne Technologies is underpaying for Bolt shares.

Separately, TheStreet Ratings team rates TELEDYNE TECHNOLOGIES INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate TELEDYNE TECHNOLOGIES INC (TDY) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • TELEDYNE TECHNOLOGIES INC has improved earnings per share by 30.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TELEDYNE TECHNOLOGIES INC increased its bottom line by earning $4.87 versus $4.33 in the prior year. This year, the market expects an improvement in earnings ($5.34 versus $4.87).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Aerospace & Defense industry average. The net income increased by 30.8% when compared to the same quarter one year prior, rising from $42.90 million to $56.10 million.
  • The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.15, which illustrates the ability to avoid short-term cash problems.
  • 42.32% is the gross profit margin for TELEDYNE TECHNOLOGIES INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.39% is above that of the industry average.
  • You can view the full analysis from the report here: TDY Ratings Report

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