Industrial products maker Fortive Corp. (NYSE:FTV) saw its shares rise 4% to $74.50 in premarket trading following an announcement that the company plans to spin off its precision technologies segment by the fourth quarter of 2025.
The precision technologies unit, which manufactures electrical testing and measurement equipment, will become a separate, publicly traded company.
Alongside the spinoff news, Fortive also revealed that CEO James Lico will retire, with Olumide Soroye, currently the president and CEO of the company's intelligent operations solutions segment, set to succeed him.
Meanwhile, brokerage sentiment remains strong, with 13 out of 20 firms rating the stock as "buy" or higher, while seven rate it as "hold."
The median price target is $83.50, according to data from LSEG.
Despite today's premarket gain, Fortive's share price is down 2.63% year-to-date as of the last close.