Traders Buy High Volume of Call Options on Varian Medical Systems (VAR)

Varian Medical Systems, Inc. (NYSE:VAR) was the recipient of some unusual options trading on Tuesday. Stock traders bought 1,832 call options on the company. This is an increase of approximately 844% compared to the average volume of 194 call options.

Varian Medical Systems stock opened at $125.48 on Wednesday. The firm has a market cap of $11.65 billion, a price-to-earnings ratio of 28.39, a P/E/G ratio of 3.41 and a beta of 0.68. Varian Medical Systems has a twelve month low of $101.42 and a twelve month high of $130.29.

Varian Medical Systems (NYSE:VAR) last posted its earnings results on Tuesday, October 23rd. The medical equipment provider reported $1.16 earnings per share for the quarter, missing analysts’ consensus estimates of $1.20 by ($0.04). The company had revenue of $801.60 million for the quarter, compared to analysts’ expectations of $766.26 million. Varian Medical Systems had a return on equity of 27.54% and a net margin of 5.14%. The firm’s quarterly revenue was up 11.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.04 EPS. As a group, equities analysts forecast that Varian Medical Systems will post 4.69 EPS for the current year.

In other news, EVP Kolleen T. Kennedy sold 6,462 shares of the company’s stock in a transaction that occurred on Friday, January 11th. The stock was sold at an average price of $125.00, for a total transaction of $807,750.00. Following the transaction, the executive vice president now owns 26,898 shares of the company’s stock, valued at $3,362,250. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO Magnus Momsen sold 2,800 shares of the company’s stock in a transaction that occurred on Thursday, January 3rd. The shares were sold at an average price of $110.17, for a total value of $308,476.00. Following the transaction, the chief accounting officer now directly owns 3,281 shares in the company, valued at approximately $361,467.77. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 14,596 shares of company stock worth $1,724,470. Insiders own 0.74% of the company’s stock.

A number of institutional investors have recently bought and sold shares of VAR. Dimensional Fund Advisors LP lifted its holdings in Varian Medical Systems by 1.7% during the second quarter. Dimensional Fund Advisors LP now owns 321,587 shares of the medical equipment provider’s stock worth $36,573,000 after buying an additional 5,414 shares during the period. Federated Investors Inc. PA lifted its holdings in Varian Medical Systems by 125.5% during the second quarter. Federated Investors Inc. PA now owns 2,789 shares of the medical equipment provider’s stock worth $317,000 after buying an additional 1,552 shares during the period. OppenheimerFunds Inc. lifted its holdings in Varian Medical Systems by 87.9% during the second quarter. OppenheimerFunds Inc. now owns 4,456 shares of the medical equipment provider’s stock worth $507,000 after buying an additional 2,085 shares during the period. First Republic Investment Management Inc. lifted its holdings in Varian Medical Systems by 10.2% during the second quarter. First Republic Investment Management Inc. now owns 5,535 shares of the medical equipment provider’s stock worth $629,000 after buying an additional 511 shares during the period. Finally, Morgan Stanley lifted its holdings in Varian Medical Systems by 58.0% during the second quarter. Morgan Stanley now owns 485,034 shares of the medical equipment provider’s stock worth $55,157,000 after buying an additional 178,136 shares during the period. Institutional investors own 95.83% of the company’s stock.

Several research analysts recently issued reports on the company. Royal Bank of Canada set a $115.00 price objective on Varian Medical Systems and gave the stock a “hold” rating in a research note on Thursday, October 4th. Citigroup increased their price objective on Varian Medical Systems from $127.00 to $145.00 and gave the stock a “buy” rating in a research note on Wednesday, October 31st. JPMorgan Chase & Co. dropped their price objective on Varian Medical Systems from $110.00 to $105.00 and set an “underweight” rating on the stock in a research note on Wednesday, October 24th. Robert W. Baird assumed coverage on Varian Medical Systems in a research note on Friday, October 19th. They issued a “neutral” rating and a $119.00 price objective on the stock. Finally, UBS Group assumed coverage on Varian Medical Systems in a research note on Wednesday, November 28th. They issued a “buy” rating and a $140.00 price objective on the stock. One analyst has rated the stock with a sell rating, four have assigned a hold rating and five have issued a buy rating to the company. The company presently has a consensus rating of “Hold” and an average price target of $126.38.

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Varian Medical Systems Company Profile

Varian Medical Systems, Inc designs, manufactures, sells, and services medical devices and software products for treating cancer and other medical conditions worldwide. It operates through two segments, Oncology Systems and Proton Solutions. The Oncology Systems segment offers hardware and software products for treating cancer with radiotherapy, fixed field intensity-modulated radiation therapy, image-guided radiation therapy, volumetric modulated arc therapy, stereotactic radiosurgery, stereotactic body radiotherapy, and brachytherapy, as well as related quality assurance equipment.

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