2. Danaher Corporation (NYSE:DHR)
Number of Hedge Fund Holders: 98
Founded in 1984 by brothers Steven and Mitchell Rales, Danaher Corporation (NYSE:DHR) is a diversified American conglomerate headquartered in Washington, D.C. The company specializes in designing, manufacturing, and marketing medical, industrial, and commercial products and services, operating through three distinct segments: Life Sciences, Diagnostics, and Environmental & Applied Solutions.
Danaher Corporation (NYSE:DHR) reported a strong start to 2024, with first-quarter revenue, earnings, and cash flow surpassing expectations. Q1 2024 revenue reached $5.8 billion, though core revenue declined by 4%. The company maintained a gross profit margin of 60% and an adjusted operating profit margin of 30.1%, with adjusted diluted net earnings per share at $1.92. Additionally, the company’s bioprocessing business is projected to achieve high single-digit growth by year-end, while the Diagnostics segment saw a core revenue increase of 7.5%.
Following Danaher Corporation (NYSE:DHR)’s first-quarter earnings report, Baird expressed a positive outlook on the company, raising the stock’s price target to $271 from $259 and reiterating an Outperform rating. Despite the better-than-anticipated results, Danaher Corporation (NYSE:DHR) has chosen to maintain its guidance for the full year 2024, with Baird suggesting that this decision may indicate a degree of caution. Nonetheless, the medium-term outlook for DHR remains positive.
As of the end of the first quarter, 98 out of 919 hedge funds tracked by Insider Monkey held stakes in Danaher Corporation (NYSE:DHR). The largest stakeholder during this period was Boykin Curry’s Eagle Capital Management, with a $1.8 billion investment. The stock ranks among the top 3 on our list of the best scientific instruments stocks to buy.
RGA Investment Advisors stated the following regarding Danaher Corporation (NYSE:DHR) in its first quarter 2024 investor letter:
“In our Q3 2023 commentary, we featured a section on our investment in Danaher Corporation (NYSE:DHR) entitled “Purity in the Crown Jewel of Bioprocessing.” Specifically, we were speaking to Cytiva, Danaher’s bioprocessing business formed by the merger of Pall Corp and GE’s bioprocessing division. We will not repeat the features that attract us to bioprocessing in general, nor the elements of timeliness, though we will emphasize that our confidence in timeliness has actually increased since writing that piece. While Danaher has performed admirably ever since, its peer Sartorius, which was referenced by labeling bioprocessing “an oligopolistic market, with a small number of critical players and extremely high barriers to entry.”
