Lantheus Holdings Inc (NASDAQ:LNTH) announced an agreement to sell 5,200,000 shares of its common stock to Credit Suisse and Jefferies LLC as underwriters in an underwritten public offering pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission on Form S-3. The Company intends to use a combination of net proceeds from this offering, together with cash on hand, to pay down approximately $55 million of the outstanding principal balance under its senior secured credit facilities.
The public offering would dilute shareholders’ investments, and as such Lantheus shares are currently dropping nearly 19% to $7.65 in per-market trading. LNTH has a 1-year high of $10.10 and a 1-year low of $1.76. The stock’s 50-day moving average is $6.46 and its 200-day moving average is $3.46.
On the ratings front, Lantheus has been the subject of a number of recent research reports. In a report issued on August 29, Jefferies analyst Raj Denhoy reiterated a Buy rating on LNTH, with a price target of $12, which implies an upside of 27% from last closing price. Separately, on August 21, Credit Suisse’s Matthew Keeler reiterated a Hold rating on the stock and has a price target of $8.00.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Raj Denhoy and Matthew Keeler have a total average return of 15.9% and 0.0% respectively. Denhoy has a success rate of 74% and is ranked #33 out of 4147 analysts, while Keeler has a success rate of 67% and is ranked #2780.
Lantheus Holdings, Inc. engages in the develops, manufactures, sells and distributes diagnostic medical imaging agents and products that assist clinicians in the diagnosis of cardiovascular and other diseases. It operates through its subsidiary, Lantheus Medical Imaging, Inc. provides a broad portfolio of products, which are primarily used for the diagnosis of cardiovascular diseases. Its products include the echocardiography contrast agent DEFINITY Vial for (Perflutren Lipid Microsphere) Injectable Suspension; TechneLite (Technetium Tc99m Generator), a technetium-based generator that provides the essential medical isotope used in nuclear medicine procedures; and Xenon (Xenon Xe 133 Gas), an inhaled radiopharmaceutical imaging agent used to evaluate pulmonary function and for imaging the lungs.