Jude Medical to buy Thoratec for 63.50

The stock price of St. Jude Medical Inc. has skyrocketed 29.42% over the last 200 days, and is in reinforcing up trend. (NYSE:STJ) updated its third quarter earnings guidance on Wednesday.

Analysts on average were expecting the company to report earnings of $1 per share on revenue of $1.39 billion.

Thoratec’s product sales dropped 5 percent a year ago to $477.6 million after reports of blood clots developing in patients, competition from HeartWare and limits on manufacturing capacity. The company has a market cap of $21.49 billion and a P/E ratio of 21.78. (NYSE:STJ) is expected to post quarterly earnings on 2015-07-22.

Device giant St. Jude Medical (NYSE:STJ) on Wednesday beat Q2 estimates and announced that it’s acquiring Thoratec (NASDAQ:THOR) for $3.4 billion, sending the latter’s stock to a new high.

Stock Price: Following the earnings release, share prices did not show any movement in the pre-market trading session. Interestingly, that average daily volume figure was lifted higher by the 2.18 million shares that traded on Monday ahead of the buyout rumors sweeping the Street.

Although currency impacts are likely to be more severe than expected for the full year, company officials said their constant-currency earnings per share forecast is in a range of $3.96 to $4 per share. Moreover, recent positive results from the clinical studies will help the company gain greater visibility and expand its addressable market. Starks sold 100,000 shares of St. Jude Medical stock in a transaction that occurred on Tuesday, April 28th. The sale was disclosed in a document filed with the SEC, which can be accessed through this link.

The Journal also says the acquisition of Thoratec’s heart failure devices “would allow St. Jude representatives to leverage their relationships with heart failure physicians and cardiac surgeons”. The shares were sold at an average price of $72.46, for a total value of $7,246,000.00. The disclosure for this sale can be found here. Conatus Capital Management Lp is another very bullish institutional investor who is having 1.32 million shares of St. Jude Medical Inc. or 5.45% of their United States equity exposure. The Company is engaged in providing solutions for the treatment of epidemic diseases, including atrial fibrillation, heart failure, stroke, coronary artery disease, congenital heart defects, Parkinson’s disease and chronic pain. Heart Failure, offers Quadripolar Pacing, Thoracic Impedance Monitoring, and Left Atrial Pressure Monitoring. Heart Valve Disease, offers Surgical Valve Replacement.

It manufactures implantable cardioverter-defibrillators.