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Colfax (CFX) Commences Public Offering of 14M Common Shares

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Colfax Corporation (CFX - Free Report) yesterday announced that it started an offering of 14 million of its common shares to the public. The offering has been underwritten and its completion is subject to customary and market conditions.

It is worth mentioning here that Colfax’s shares declined 0.7% yesterday, with the trading closing at $49.66.

Inside the Headlines

As noted, the company has provided underwriters an option to buy an additional 2.1 million of its common share in the next 30 days. Price per share for underwriters will be the net of the public offer price, and underwriting commissions and discounts.

Assuming no purchases are made by the underwriters, the company’s outstanding common shares post the 14-million offering will likely be 132.5 million. Notably, its diluted shares outstanding were 118.5 million at the end of fourth-quarter 2020.

The company intends to use the proceeds raised from the offering to pay for offering expenses, including commissions and underwriting discounts. In addition to these, the company will also use the funds for satisfying general corporate purposes (including the payment of debts and funding for capital expenditure) and working capital needs.

Important Event This Month

Earlier in the month, Colfax communicated about its intention to form two independent companies, with one focused on its fabrication technology business and the other on its medical technology. The separation, to be accomplished in a tax-free manner, is anticipated to be beneficial for both businesses.

Completion of the separation is expected in the first quarter of 2022. (For more information please read: Colfax Plans to Split Businesses Into Separate Companies)

Zacks Rank, Estimate Trend and Price Performance

Colfax currently has a market capitalization of $5.9 billion and a Zacks Rank #3 (Hold) at present.

The company’s shares have gained 34.1% in the past three months as compared with the industry’s growth of 92.1%.




 

In the past 60 days, the Zacks Consensus Estimate for its earnings has been increased by 3.9% to $2.13 per share for 2021 and decreased by 0.4% to $2.42 for 2022. The estimate for the first quarter of 2021 declined 7.1% to 39 cents.

Colfax Corporation Price and Consensus

 

Colfax Corporation Price and Consensus

Colfax Corporation price-consensus-chart | Colfax Corporation Quote

Stocks to Consider

Some better-ranked stocks in the industry are EnPro Industries, Inc. (NPO - Free Report) , Applied Industrial Technologies, Inc. (AIT - Free Report) and Chart Industries, Inc. (GTLS - Free Report) . While EnPro currently sports a Zacks Rank #1 (Strong Buy), both Applied Industrial and Chart Industries carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, earnings estimates for these stocks improved for the current year. Further, positive earnings surprise, on average, for the last four quarters was 310.81% for EnPro, 21.92% for Applied Industrial and 30.80% for Chart Industries.

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