Charles River Laboratories International Inc. (NYSE: CRL) Volatility Spurs A Quest For Clarity


SSgA Funds Management, Inc. recently announced the acquisition of new stake in Charles River Laboratories International Inc. (NYSE:CRL). The institutional investor has increased its shareholding in the Healthcare company by 3.11% to 1.15 million shares with purchase of 34731.0 shares. This fresh investment now brings its stake to 2.33% valued currently at $206.96 million. In addition, Brown Advisory LLC raised its holdings by 16904.0 to 0.93 million shares. And Epoch Investment Partners, Inc. has lifted its position by 15.74% or 0.11 million shares – to 0.82 million shares.

With over 0.31 million Charles River Laboratories International Inc. (CRL) shares trading Wednesday and a closing price of $185.09 on the day, the dollar volume was approximately $56.72 million. The shares have shown a positive weekly performance of 6.16% and its price on 07/08/20 gained nearly 2.03%. Currently, there are 49.19M common shares owned by the public and among those 48.70M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 19 analysts who have offered their price forecasts for CRL have a consensus price objective of $184.94. The analysts have set the share’s price value over the next 12 months at a high of $200.00 and a low of $159.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Charles River Laboratories International Inc. stock is 1.80 for the next 12 months. The average price target is -0.37% below its last price level and a downside to the estimated low will see the stock lose -16.41% over that period. But an upside of 7.45% will see the stock hit the forecast high price target while mean target price for the stock is $186.50.

Insiders at the company have transacted a total of 312 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 61 of these insider trades were purchases, accounting for 423,837 shares. Insider sales of the common stock occurred on 251 occasions, with total insider shares sold totaling 388,004 shares.

The top 3 mutual fund holders in Charles River Laboratories International Inc. are Vanguard Total Stock Market Index, iShares Core S&P Mid Cap ETF, and Vanguard Small Cap Index Fund. Vanguard Total Stock Market Index owns 1.41 million shares of the company’s stock, all valued at over $252.84 million. The company sold 8045.0 shares recently to bring their total holdings to about 2.84% of the shares outstanding. iShares Core S&P Mid Cap ETF bought 2770.0 shares to see its total holdings expand to 1.33 million shares valued at over $238.87 million and representing 2.69% of the shares outstanding. Vanguard Small Cap Index Fund sold 10691.0 shares to bring its total holdings to over 1.26 million shares at a value of $227.25 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.56% of the shares outstanding.

Shares of Charles River Laboratories International Inc. (NYSE: CRL) opened at $182.44, up $1.03 from a prior closing price of $181.41. However, the script later closed the day at $185.09, up 2.03%. The company’s stock has a 5-day price change of 6.16% and 38.82% over the past three months. CRL shares are trading 21.16% year to date (YTD), with the 12-month market performance up to 32.74% higher. It has a 12-month low price of $95.58 and touched a high of $189.85 over the same period. Currently, 0.31 million shares have been traded, compared to an average intraday trading volume of 390.27K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 4.77%, 9.28%, and 23.89% respectively.

Institutional ownership of Charles River Laboratories International Inc. (NYSE: CRL) shares accounts for 97.10% of the company’s 49.19M shares outstanding. Mutual fund holders own 46.94%, while other institutional holders and individual stakeholders account for 48.76% and 4.19% respectively.

It has a market capitalization of $9.09B and a beta (3y monthly) value of 1.18. The stock’s trailing 12-month PE ratio is 37.23, while the earnings-per-share (ttm) stands at $4.97. The company has a PEG of 2.66 and a Quick Ratio of 1.50 with the debt-to-equity ratio at 1.44. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.25% over the week and 2.78% over the month.

Analysts forecast that Charles River Laboratories International Inc. (CRL) will achieve an EPS of $1.26 for the current quarter, $1.69 for the next quarter and $8.21 for 2021. The lowest estimate earnings-per-share for the quarter is $1.19 while analysts give the company a high EPS estimate of $1.4. Comparatively, EPS for the current quarter was $1.63 a year ago. Earnings per share for the fiscal year are expected to increase by 13.30%, and 19.01% over the next financial year. EPS should grow at an annualized rate of 14.00% over the next five years, compared to 13.40% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by several brokerage firm advisors rate Charles River Laboratories International Inc. (CRL) as a “Strong Buy” at a consensus score of 1.80.

Looking at the support for the CRL, a number of firms have released research notes about the stock. BofA Securities stated their Buy rating for the stock in a research note on July 01, 2020, with the firm’s price target at $192. UBS coverage for the Charles River Laboratories International Inc. (CRL) stock in a research note released on May 13, 2020 offered a Buy rating with a price target of $200. Jefferies was of a view on April 21, 2020 that the stock is Hold, while Morgan Stanley gave the stock Overweight rating on March 27, 2020 $152. Deutsche Bank on their part issued Buy rating on March 02, 2020.


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