Moog Jumps on Possible Medical Devices Sale

In our last CWS Market Review, I raised the Buy Below on Moog ($MOG-A) to $55 per share. Good timing. Moog is up to $53.48 at noon on the news that it’s considering selling off its medical devices division.

Moog Inc. said it will work with RBC Capital Markets LLC to evaluate options for its medical devices division including a possible sale. The shares advanced.

Moog also completed the sale of its Ethox Medical business to Dempsey Ventures for an undisclosed sum, according to a statement today. The divestiture will result in an after-tax non-cash loss of about $5 million, or 11 cents a share, in the quarter ended June 29, East Aurora, New York-based Moog said.

Revenue at Moog’s medical device segment last year fell 1.7 percent to $140 million, the equivalent of 5.7 percent of the company’s $2.5 billion in total sales. Moog’s biggest unit, which manufactures aircraft controls, had $963.4 million in sales last year.

The shares rose 2.7 percent to $52.91 at 10:21 a.m. in New York, after reaching $53.30, the highest intraday price since at least 1988.

big.chart07012013

Posted by on July 1st, 2013 at 12:06 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.