Solventum Corporation (NYSE:SOLV) has garnered a consensus recommendation of “Hold” from thirteen brokerages monitoring the company, according to data from MarketBeat.com. This assessment reflects a mix of opinions among analysts, with one advising a sell, eight suggesting a hold, and four endorsing a buy. The average twelve-month price target set by these analysts is currently at $87.00.
Several research firms have issued reports on Solventum, highlighting the company’s market performance. On November 21, UBS Group reaffirmed a “neutral” rating, while Piper Sandler maintained an “overweight” rating on December 17. Notably, Zacks Research shifted its stance from a “strong-buy” to a “hold” rating on December 1. Additionally, Wells Fargo & Company raised its price target from $79.00 to $82.00, designating the stock with an “equal weight” rating. Most recently, Wall Street Zen upgraded its rating from “hold” to “buy” on December 13.
Investment Activities and Share Performance
Recent activity from large investors indicates a growing interest in Solventum. Independent Franchise Partners LLP significantly increased its stake by 74.2% during the second quarter, now owning 10,141,066 shares valued at $769.1 million after acquiring an additional 4,320,342 shares. Additionally, Norges Bank entered a new position valued at $140.5 million in the same quarter.
In the third quarter, Boston Partners raised its holdings by 26.1%, bringing its total to 4,630,300 shares worth approximately $338.0 million. Vanguard Group Inc. also increased its stake by 5.3%, now owning 17,121,198 shares valued at $1.25 billion. Balyasny Asset Management L.P. purchased a new stake during this period, valued at $42.4 million.
As of the latest trading session, shares of Solventum opened at $80.18. The company has a 50-day moving average of $77.56 and a 200-day moving average of $74.83. Solventum’s financial indicators include a current ratio of 1.50, a quick ratio of 1.14, and a debt-to-equity ratio of 1.03. The company’s market capitalization stands at approximately $13.91 billion, with a price-to-earnings (P/E) ratio of 9.24.
Solventum reached a twelve-month low of $60.70 and a high of $88.20. The company announced its quarterly earnings results on November 6, reporting earnings per share (EPS) of $1.50, surpassing the consensus estimate of $1.43 by $0.07. Revenue for the quarter was $2.10 billion, exceeding expectations of $2.05 billion. Solventum’s net margin stood at 18.13% with a return on equity of 28.01%, reflecting a 0.7% increase in revenue compared to the same quarter last year.
Future Outlook and Share Buyback Program
Looking ahead, Solventum has set its fiscal year 2025 guidance at EPS between $5.980 and $6.080. Analysts predict that the company will achieve an EPS of $6.58 for the current fiscal year.
On November 20, the Board of Directors announced a stock buyback program, authorizing the company to repurchase up to $1.00 billion in shares, which corresponds to approximately 7.5% of its outstanding shares through open market purchases. Such buyback programs typically signal that a company believes its stock is undervalued.
Solventum Corporation specializes in developing, manufacturing, and marketing solutions that address critical healthcare needs. The company operates across four segments: Medsurg, Dental Solutions, Health Information Systems, and Purification and Filtration. The Medsurg segment provides a variety of solutions including advanced wound care, I.V. site management, and sterilization assurance, among others.
With a strong foundation and strategic initiatives, Solventum appears poised for continued growth in the healthcare sector.
