Fidelity buys into the Boston Scientific comeback story in a big way

July 25, 2013 by Brian Johnson

Mutual fund powerhouse Fidelity discloses a 10.5% stake in Boston Scientific, making it the medical device company's largest institutional shareholder.

Boston Scientific logo

Fidelity bought into the Boston Scientific (NYSE:BSX) comeback in a big way, revealing in a regulatory filing a nearly 10.5% stake in the medical device company.

With its investment, Fidelity supplants Dodge & Cox., as Boston Scientific's largest institutional shareholder.

The mutual fund company now owns 141.1 million BSX shares, according to the filing.

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Fidelity's investment comes as Boston Scientific has been in the midst of a hot streak on Wall Street, where shares of BSX are up 85% so far in 2013.

Boston Scientific shares hit a 4-year high today, reaching $11.11 per share following its quarterly earnings report, meaning that Fidelity's investment has increased nearly 20% in value since its position was revealed July 10.

The Natick, Mass.-based company posted profits of $130 million, or 10¢ per share, on sales of $1.81 billion during the 3 months ended June 30. Last year Boston Scientific reported $3.59 billion in losses for same period, largely due to a massive, $3.60 billion write-down.

Excluding foreign exchange effects, sales were up 2%, according to a press release, and Boston Scientific said adjusted earnings per share were 18¢ – double the expectations of Wall Street analysts.