Edwards Lifesciences announces $500 million accelerated share repurchase

IRVINE - Edwards Lifesciences (NYSE:EW), the $46 billion market cap medical technology company, has executed an accelerated share repurchase agreement (ASR) to buy back $500 million of its common stock, the company announced Tuesday. According to InvestingPro data, management has been consistently aggressive with share buybacks.

Under the terms of the agreement, Edwards will initially receive approximately 5 million shares, with the final number to be determined based on the volume weighted average share price during the term of the agreement. The transaction is being funded with the company’s existing cash reserves, which InvestingPro analysis shows are more than sufficient to cover its obligations, with a strong current ratio of 4.68 and moderate debt levels.

This latest buyback brings Edwards’ total share repurchases to more than $800 million in 2025. Following this transaction, the company will have approximately $600 million remaining in its share repurchase authorization approved by its Board of Directors.

Edwards Lifesciences describes itself as a structural heart innovation company that develops technologies for heart valve disease and critical care monitoring. The company trades on the New York Stock Exchange under the ticker EW, currently near its 52-week high of $83, with a P/E ratio of 33x. InvestingPro offers 10+ additional exclusive insights about Edwards’ valuation and growth prospects in its comprehensive Pro Research Report.

The announcement comes as part of the company’s ongoing capital allocation strategy, according to the press release statement. No details were provided regarding the expected completion date of the accelerated share repurchase program or the financial institutions involved in facilitating the transaction.

In other recent news, Edwards Lifesciences reported robust second-quarter results, showcasing a 10.6% organic growth that surpassed consensus estimates by 3%. The company’s Transcatheter Aortic Valve Replacement (TAVR) segment demonstrated a 7.8% year-over-year growth, excluding foreign exchange impacts, with strong performance in both domestic and international markets. UBS noted that Edwards Lifesciences’ TAVR and Transcatheter Mitral and Tricuspid Therapies (TMTT) segments exceeded consensus estimates by approximately 3% and 3.5%, respectively. Piper Sandler responded to the strong quarterly performance by raising its price target for the company to $90, maintaining an Overweight rating. Similarly, Bernstein increased its price target to $85, citing the company’s solid second-quarter performance while keeping a Market Perform rating. BTIG upgraded Edwards Lifesciences to Buy, highlighting the stability in the TAVR segment, which is projected to grow 6-7% year-over-year in 2025. Additionally, Moody’s revised the company’s outlook to positive, affirming its Baa2 rating, reflecting confidence in Edwards’ leadership in medical devices for structural heart diseases. These developments underscore the company’s strong financial health and growth potential in the medical device sector.

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