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Tiziano Frateschi
Tiziano Frateschi
Articles (1407)  | Author's Website |

Insiders New Buys: Bruker Corp

June 22, 2015 | About:

The All-In-One Guru Screener can be used to find insider buys over the last week by clicking on the Insiders tab and changing the settings for All Insider Buying to “$2,000,000+” and Duration to "over the past 7 days".

With the above filters, just one trade met that criteria.

On June 15, CEO, President and 10% Owner Frank H. Laukien, bought 1,000,000 shares of Bruker Corp (BRKR) at a price of $19.50 (a total cost of $19,500,000). After that trade, the stock rose by 7.0%. Laukien now holds 36,611,097 shares that is equal to 21.68% of shares outstanding. He is the main holder of the company that has a mixed ownership: 68% is Institutional ownership and 59% is insider ownership.

Bruker Corp is a designer and manufacturer of proprietary life science and materials research systems and associated products that address the rapidly evolving needs of customers in life science, pharmaceutical, biotechnological, clinical and molecular diagnostics research, and materials and chemical analysis in various industries and government applications. Its technology platforms include magnetic resonance technologies, mass spectrometry technologies, gas chromatography technologies, X-ray technologies, spark-optical emission spectroscopy, atomic force microscopy, stylus and optical metrology technology, and infrared and Raman molecular spectroscopy technologies.

The company is now trading with a very high P/E (ttm) of 64.28 at about $21, -16.22% from its 52 weeks high of $24.90 and +20.86% from its 52 weeks low of $17.26. The price dropped by 13% during the last 12 months. Mizuho downgraded the company from “buy” to “neutral”, following the decision of its CFO Charles F. Wagner, Jr. to resign and go to apply for the same position at Ortho-Clinical Diagnostics.

The company has enough cash to cover its debts (cash to debt ratio is 1.39) even if BRKR performance is underperforming the sector that has an average cash to debt ratio of 3.74. Returns are positive but not exciting: ROE is 6.76%, ROA is 2.84% and ROC 18.36% and all these ratios are ranked higher than 66% of other companies in the same sector.

Revenue over the last 5 years grew by 10% and book value by 13%, while EPS dropped by 7.50%. During the last 12 months this ratios are all dropping (EBITDA -20%, EPS, -36% and book value -17%) while during the Q1 of 2015 things got few better. During the first quarter of 2015 the company showed solid operating income (+12% YoY), earnings (+27%, YoY) and free cash flow, despite lower revenues (-16.6% from the first quarter of the previous year) that were expected as the result of currency fluctuations.

The insider said “We have made good progress in the first quarter of 2015, at least outside of Germany and France. In the latter two countries, we expect to complete our negotiations with our respective workers council in the second quarter 2015, and then hope to start implementation in the remainder of 2015. Once our negotiations are completed, we will be able to share more details with you about the projected costs, the timing, and savings associated with the BioSpin rightsizing and factory consolidation program."

During the first 3 months of 2015, Paul Tudor Jones (Trades, Portfolio) and Pioneer Investments (Trades, Portfolio) sold out their stakes, while Steven Cohen (Trades, Portfolio) and Jim Simons (Trades, Portfolio) bought shares of BRKR for the first time.

About the author:

Tiziano Frateschi
You can read about me on this blog: www.theextraincome.info

It gives suggestions on position trading.

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