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Goodrich Shares Popped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Goodrich (NYSE: GR  ) climbed 10% on Thursday after United Technologies (NYSE: UTX  ) agreed to buy the aerospace manufacturer for $16.5 billion, or $127.50 per share.

So what: The all-cash deal represents just a 16% premium to Goodrich's Wednesday closing price, but it's about 50% higher from where the stock was late last week, before the news started leaking. United Tech is making the acquisition, its largest ever, to broaden its portfolio and, specifically, boost its presence in the civilian aerospace market.

Now what: While Goodrich shares are probably all popped out, United Tech might be worth a closer look. "Goodrich delivers on all of our acquisition criteria," United Tech Chairman and CEO Louis Chenevert said. "It is strategic to our core, has great technology and people, and strengthens our position in growth markets." The deal isn't expected to close for several months and may not even boost United Tech's earnings for a few years, but pouncing on its beaten-down stock price now may pay off over the long run.

Interested in more info on Goodrich? Add it to your watchlist.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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Brian Pacampara
TMFEZMagic

I take a look at big 10% moves, as well as stock-shaking analyst calls, on a daily basis for The Fool. While I don't believe in active trading, closely monitoring Mr. Market's mood swings can help identify long-term opportunities.

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Related Tickers

12/31/1969 7:00 PM
GR.DL $0.00 Down +0.00 +0.00%
Goodrich Corp CAPS Rating: ****
UTX $92.13 Up +0.89 +0.98%
United Technologie… CAPS Rating: ****