What Happened?
Shares of medical device company Penumbra (NYSE: PEN) jumped 12.1% in the afternoon session after the company agreed to be acquired by Boston Scientific in a deal valued at approximately $14.5 billion.
The acquisition terms valued Penumbra at $374 per share, a premium of about 19.3% to its last closing price. Under the agreement, Penumbra stockholders had the option to receive cash or shares of Boston Scientific. The deal was expected to expand Boston Scientific's portfolio of cardiovascular devices by giving it access to Penumbra's technology for clearing blood clots. Coinciding with the buyout announcement, Penumbra also released strong preliminary financial results for 2025, anticipating full-year revenue growth of approximately 17.3% to 17.5% compared to 2024.
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What Is The Market Telling Us
Penumbra’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. But moves this big are rare even for Penumbra and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 2 months ago when the stock gained 17.2% on the news that it reported third-quarter 2025 financial results that surpassed Wall Street's expectations for both revenue and profit.
The company's revenue grew 17.8% year on year to $354.7 million, comfortably beating analysts' consensus estimate of $340.4 million. Its profitability also showed significant improvement, with non-GAAP earnings per share (EPS) of $0.97, which was 5.3% ahead of expectations. Penumbra demonstrated increased efficiency as its operating margin expanded to 13.8%, a notable increase from 11.7% in the same quarter of the previous year. This strong all-around performance, which showcased healthy demand and enhanced profitability, prompted a positive investor reaction.
Penumbra is up 13.6% since the beginning of the year, and at $351.44 per share, has set a new 52-week high. Investors who bought $1,000 worth of Penumbra’s shares 5 years ago would now be looking at an investment worth $1,538.
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