Goodrich Shares Popped: What You Need to Know

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.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 1557937, ~/Articles/ArticleHandler.aspx, 4/23/2014 12:29:53 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement