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AngioDynamics (ANGO) Prices 2.5M Secondary Share Offering

Zacks Equity Research

Leading provider of medical devices AngioDynamics, Inc. ANGO announced that it has priced its underwritten public offering of 2.35 million shares of common stock. The shares were priced at $16.20.
Stock Performance

In the last one year, the price performance of AngioDynamics was encouraging. The stock added 50.28% comparing favorably with the Zacks classified Medical Instruments sub-industry’s gain of 4.65%. Also, the stock’s performance compares favorably with the S&P 500’s return of 14.05% over the same time frame. Added to this, a long-term expected earnings growth rate of 9.94% instills confidence in investors.

Despite the bullish price trend, estimate revision for the stock has been quite disappointing. The full year saw 10 estimates move south over the last two months, compared with no movement in the opposite direction. As a result, the stock dropped a nominal 1% to $9.42 over the same time frame. These mixed sentiments justify the stock’s Zacks Rank #3 (Hold).

The last reported sale price of the company’s common stock on Apr 7, 2017 was $16.21 per share. Looking at recent performance, AngioDynamics generated strong cash flow in the third quarter of fiscal 2017, ended Feb 28. The company witnessed $14.4 million in operating cash flow and $14.0 million in free cash flow. Additionally, AngioDynamics ended the quarter ended Feb 28, 2017, with $35.6 million in cash and cash equivalents. The company had outstanding long-term debt worth $92.5 million.

AngioDynamics is a leading provider of minimally invasive medical devices used for vascular access, surgery, peripheral vascular disease and oncology. The company’s product lines include ablation systems, fluid management systems, vascular access products, angiographic products and accessories, angioplasty products, drainage products, thrombolytic products and venous products.

We believe that an expanding portfolio, including the likes of Asclera, Bioflo and NanoKnife, significantly enhances AngioDynamics’ market opportunities. The company continues to enjoy healthy demand for its coveted NanoKnife system for treating tumors across China and Japan.

The launch of SOLERO in the microwave sector should also to bode well for the company. However, the discontinuity of Celerity and a dip in Vascular access sales might dent its operational efficiency over the long term.
Headquartered in Latham, NY, AngioDynamics designs, manufactures and sells a wide range of medical, surgical and diagnostic devices.

Key Picks

Some better-ranked stocks in the broader medical sector include Inogen Inc. INGN, Hologic, Inc. HOLX and Sunshine Heart Inc SSH. Notably, all the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Inogen has a long-term expected earnings growth rate of 17.50%. The stock registered an impressive one-year return of 67.2%.

Hologic has a long-term expected earnings growth rate of 11.33%. The stock has a stellar one-year return of roughly 22%.

Sunshine Heart posted a positive earnings surprise of 58.24% in the last reported quarter. The stock has a stellar historical EPS growth record (last 3–5 years of actual earnings) of almost 22%.

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Hologic, Inc. (HOLX): Free Stock Analysis Report
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Inogen, Inc (INGN): Free Stock Analysis Report
Sunshine Heart Inc (SSH): Free Stock Analysis Report
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