Why should you buy stock in Varian Medical Systems Inc. (VAR)?

Varian Medical Systems Inc. (NYSE: VAR) is -14.27% lower on its value in year-to-date trading and has touched a low of $89.62 and a high of $150.06 in the current 52-week trading range. The VAR stock was last observed hovering at around $118.51 in the last trading session, with the day’s gains setting it 3.23% off its average median price target of $130.00 for the next 12 months. It is also 18.84% off the consensus price target high of $150.00 offered by 10 analysts, but current levels are -35.27% lower than the price target low of $90.00 for the same period.

Currently trading at $121.74, the stock is 4.89% and 10.63% above its SMA20 and SMA50 respectively. However, with a daily trading volume of 0.61 million and changing 2.73% at the moment leaves the stock -1.14% off its SMA200. VAR registered -3.30% loss for a year compared to 6-month loss of -7.48%. The firm has a 50-day simple moving average (SMA 50) of $114.09 and a 200-day simple moving average (SMA200) of $127.42.

The stock witnessed a 9.71% gain in the last 1 month and extending the period to 3 months gives it a -6.48%, and is 4.71% up over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 2.83% over the week and 3.06% over the month.

Varian Medical Systems Inc. (VAR) has around 10062 employees, a market worth around $11.09B and $3.33B in sales. Current P/E ratio is 47.43 and Fwd P/E is 24.21. Profit margin for the company is 7.00%. Distance from 52-week low is 35.84% and -18.87% from its 52-week high. The company has generated returns on investments over the last 12 months (12.10%).

Varian Medical Systems Inc. (VAR) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for Varian Medical Systems Inc. (VAR) is a “Overweight”. 10 analysts offering their recommendations for the stock have an average rating of 2.10, where 2 rate it as a Hold and 1 think it is a “Overweight”. 5 of the analysts rate the stock as a “Buy”. 2 analysts have rated the stock as a Sell or Underperform.

Varian Medical Systems Inc. is expected to release its quarterly report on 07/22/2020 and quarterly earnings per share for the current quarter are estimated at $0.85 with sales reaching $769.98M over the same period.The EPS is expected to shrink by -16.10% this year, but quarterly earnings will post -5.40% year-over-year.

Varian Medical Systems Inc. (VAR) Top Institutional Holders

857 institutions hold shares in Varian Medical Systems Inc. (VAR), with 347.82k shares held by insiders accounting for 0.38% while institutional investors hold 94.99% of the company’s shares. The shares outstanding are 90.70M, and float is at 90.55M with Short Float at 3.44%. Institutions hold 94.63% of the Float.

Varian Medical Systems Inc. (VAR) Insider Activity

A total of 74 insider transactions have happened at Varian Medical Systems Inc. (VAR) in the last six months, with sales accounting for 33 and purchases happening 41 times. The most recent transaction is an insider sale by Bruff Jesse Michael, the company’s SVP Finance, CFO. SEC filings show that Bruff Jesse Michael sold 205 shares of the company’s common stock on May 07 at a price of $117.22 per share for a total of $0.02 million. Following the sale, the insider now owns 0.0 million shares.

Varian Medical Systems Inc. disclosed in a document filed with the SEC on Apr 13 that Toth Christopher A. (SVP and Pres. Oncology Systems) sold a total of 1,625 shares of the company’s common stock. The trade occurred on Apr 13 and was made at $109.74 per share for $0.18 million. Following the transaction, the insider now directly holds 0.0 million shares of the VAR stock.

Still, SEC filings show that on Mar 17, WILSON DOW R (President and CEO) disposed off 38,909 shares at an average price of $110.00 for $4.28 million. The insider now directly holds 82,358 shares of Varian Medical Systems Inc. (VAR).

Varian Medical Systems Inc. (VAR): Who are the competitors?

The company’s main competitors (and peers) include Koninklijke Philips N.V. (PHG) that is trading 10.37% up over the past 12 months. Short interest in the company’s stock has risen 7.93% from the last report on Apr 14, 2020 to stand at a total of 3.02 million short shares sold with a short interest ratio of 3.66.