Boston Scientific’s (BSX) stock is up 4% after the medical device maker announced an accelerated $2 billion stock buyback program.
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Boston Scientific said in a news release that it has entered into an accelerated share repurchase agreement with JPMorgan Chase (JPM) for $2 billion of its common stock. The sped-up stock buybacks are part of Boston Scientific’s previously announced $5 billion share repurchase program.
Separately, Boston Scientific announced a $1.5 billion investment for a 34% equity stake in MiRus, a privately-held company that is developing cardiovascular and orthopedic treatments. The company has turned to acquisitions to fuel its growth in recent years.
BSX Stock Struggles
The rise in BSX stock on May 18 is no doubt welcome by shareholders. Boston Scientific’s stock has declined 42% this year and been among the worst performers in the S&P 500 index. The stock has struggled since January when Boston Scientific announced a big acquisition.
The company is in the process of acquiring Penumbra (PEN), a maker of cardiovascular devices, for $14.5 billion. The purchase, which still needs regulatory approval, gives Boston Scientific access to Penumbra’s devices used to clear blood clots during heart surgeries. However, some analysts have questioned the acquisition and its price tag.
Is BSX Stock a Buy?
Boston Scientific’s stock has a consensus Strong Buy rating among 27 Wall Street analysts. That rating is based on 26 Buy and one Hold recommendations issued in the last three months. The average BSX price target of $87.64 implies 60% upside from current levels.
