We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Grifols' Board Rejects Brookfield's Buyout Offer, Stock Down 8%
Read MoreHide Full Article
Shares of Grifols (GRFS - Free Report) lost over 8% on Tuesday after the company’s board refused to endorse Canada-based Brookfield Asset Management’s offer to acquire its outstanding share capital for €6.45 billion (around $6.8 billion).
Per a regulatory filing submitted to the SEC, Grifols stated that the valuation offered by Brookfield “significantly undervalues the company’s fundamental prospects and its long-term potential.”
Brookfield, along with key shareholders of Grifols, had expressed its intent for a potential takeover of the company in July. These key shareholders are the members of the Grifols family as well as founders of the company.Per a Bloomberg article, the Grifols family owns about a third of the company.
Brookfield is reportedly in discussion with banks to raise funds for the above transaction. Through these funds, it intends to refinance Grifols’ existing debt, which includes loans and high-yield bonds. This need for refinancing is due to a clause in Grifols' existing debt agreements that would allow bondholders to demand early repayment at a premium if the company is taken private.
GRFS Stock Performance
Shares of the company plummeted as investors were not impressed with the valuation offered by Brookfield. Some investors also raised concerns that the deal was now unlikely to go through, considering the lower-than-expected valuation quoted by Brookfield.
Year to date, shares of Grifols have lost 26.8% compared with the industry’s 6.9% decline.
Image Source: Zacks Investment Research
Factors Responsible for GRFS Stock’s Decline
This downside in the share price was due to an attack by short-seller Gotham City Research (in January), which released several reports accusing Grifols of overstating earnings and understating debt. These accusations were further exacerbated by negative news surrounding the company’s cash flows and subsequent accounting adjustments on investments in China.
To address the above concerns, Grifols appointed new management and even removed family members from executive roles.
In the past 60 days, estimates for Castle Biosciences’ 2024 loss per share have narrowed from 58 cents to 8 cents. During the same timeframe, loss per share estimates for 2025 have narrowed from $2.13 to $1.88. Year to date, shares of Castle Biosciences have surged 29.3%.
CSTL’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 172.72%.
In the past 60 days, estimates for CytomX Therapeutics’ 2024 loss per share have narrowed from 29 cents to 13 cents. Estimates for 2025 loss per share have narrowed from 56 cents to 46 cents. Year to date, shares of CytomX Therapeutics have lost 44.3%.
CytomX Therapeutics’ earnings beat estimates in two of the trailing four quarters and missed the mark on the other two occasions, delivering an average surprise of 115.70%.
In the past 60 days, estimates for Spero Therapeutics’ 2024 loss per share have narrowed from $1.59 to $1.31. Estimates for 2025 loss per share have narrowed from $1.54 to $1.16. Year to date, shares of Spero Therapeutics have lost 22.5%.
Spero Therapeutics’ earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average surprise of 94.42%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Grifols' Board Rejects Brookfield's Buyout Offer, Stock Down 8%
Shares of Grifols (GRFS - Free Report) lost over 8% on Tuesday after the company’s board refused to endorse Canada-based Brookfield Asset Management’s offer to acquire its outstanding share capital for €6.45 billion (around $6.8 billion).
Per a regulatory filing submitted to the SEC, Grifols stated that the valuation offered by Brookfield “significantly undervalues the company’s fundamental prospects and its long-term potential.”
Brookfield, along with key shareholders of Grifols, had expressed its intent for a potential takeover of the company in July. These key shareholders are the members of the Grifols family as well as founders of the company.Per a Bloomberg article, the Grifols family owns about a third of the company.
Brookfield is reportedly in discussion with banks to raise funds for the above transaction. Through these funds, it intends to refinance Grifols’ existing debt, which includes loans and high-yield bonds. This need for refinancing is due to a clause in Grifols' existing debt agreements that would allow bondholders to demand early repayment at a premium if the company is taken private.
GRFS Stock Performance
Shares of the company plummeted as investors were not impressed with the valuation offered by Brookfield. Some investors also raised concerns that the deal was now unlikely to go through, considering the lower-than-expected valuation quoted by Brookfield.
Year to date, shares of Grifols have lost 26.8% compared with the industry’s 6.9% decline.
Image Source: Zacks Investment Research
Factors Responsible for GRFS Stock’s Decline
This downside in the share price was due to an attack by short-seller Gotham City Research (in January), which released several reports accusing Grifols of overstating earnings and understating debt. These accusations were further exacerbated by negative news surrounding the company’s cash flows and subsequent accounting adjustments on investments in China.
To address the above concerns, Grifols appointed new management and even removed family members from executive roles.
GRFS’ Zacks Rank
Grifols currently carries a Zacks Rank #3 (Hold).
Grifols, S.A. Price
Grifols, S.A. price | Grifols, S.A. Quote
Key Picks Among Biotech Stocks
Some better-ranked stocks from the sector are Castle Biosciences (CSTL - Free Report) , CytomX Therapeutics (CTMX - Free Report) and Spero Therapeutics (SPRO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Castle Biosciences’ 2024 loss per share have narrowed from 58 cents to 8 cents. During the same timeframe, loss per share estimates for 2025 have narrowed from $2.13 to $1.88. Year to date, shares of Castle Biosciences have surged 29.3%.
CSTL’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 172.72%.
In the past 60 days, estimates for CytomX Therapeutics’ 2024 loss per share have narrowed from 29 cents to 13 cents. Estimates for 2025 loss per share have narrowed from 56 cents to 46 cents. Year to date, shares of CytomX Therapeutics have lost 44.3%.
CytomX Therapeutics’ earnings beat estimates in two of the trailing four quarters and missed the mark on the other two occasions, delivering an average surprise of 115.70%.
In the past 60 days, estimates for Spero Therapeutics’ 2024 loss per share have narrowed from $1.59 to $1.31. Estimates for 2025 loss per share have narrowed from $1.54 to $1.16. Year to date, shares of Spero Therapeutics have lost 22.5%.
Spero Therapeutics’ earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average surprise of 94.42%.