Zacks Investment Research Lowers Hill-Rom Holdings Inc. (HRC) to Hold
According to Zacks, “Post a promising third quarter by Hill-Rom, we are upbeat about the company to remain on a solid growth trajectory over the near term. The company’s year-over-year outcome was impressive along with record level of gross margin. Based on several positive catalysts, we expect the company to expand geographically in the coming quarters. Notably, in the last reported quarter, Hill-Rom posted strong growth in both Asia-Pacific and the U.S. While we remain impressed with the company’s increased bottom-line guidance for fiscal 2016, the revenue guidance was quite discouraging. Moreover, Hill-Rom’s persistent poor performance in the International front, especially in the Middle East and Latin America keeps us concerned. Unfortunately no near term improvement can be expected in the existing capital crunch condition that eventually led to economic and political downturns in these economies.”
HRC has been the subject of several other reports. KeyCorp reiterated a buy rating and issued a $59.00 price target on shares of Hill-Rom Holdings in a research note on Thursday, June 23rd. Morgan Stanley upgraded shares of Hill-Rom Holdings from an equal weight rating to an overweight rating and increased their price target for the stock from $54.00 to $62.00 in a research note on Thursday, June 16th. One analyst has rated the stock with a hold rating, five have issued a buy rating and one has assigned a strong buy rating to the stock. The company currently has a consensus rating of Buy and an average price target of $61.83.
Hill-Rom Holdings (NYSE:HRC) opened at 60.84 on Tuesday. Hill-Rom Holdings has a 12-month low of $42.99 and a 12-month high of $60.92. The stock has a market capitalization of $3.98 billion, a PE ratio of 62.66 and a beta of 1.06. The company’s 50-day moving average is $58.55 and its 200 day moving average is $52.33.
Hill-Rom Holdings (NYSE:HRC) last posted its earnings results on Thursday, August 4th. The medical technology company reported $0.81 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.76 by $0.05. Hill-Rom Holdings had a net margin of 2.47% and a return on equity of 16.62%. The firm earned $655.40 million during the quarter, compared to analysts’ expectations of $647.75 million. During the same period last year, the company posted $0.62 EPS. The company’s quarterly revenue was up 38.1% compared to the same quarter last year. On average, equities research analysts expect that Hill-Rom Holdings will post $3.33 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 30th. Shareholders of record on Friday, September 16th will be paid a dividend of $0.17 per share. The ex-dividend date of this dividend is Wednesday, September 14th. This represents a $0.68 dividend on an annualized basis and a yield of 1.12%. Hill-Rom Holdings’s dividend payout ratio is currently 73.91%.
Hedge funds have recently added to or reduced their stakes in the stock. Acrospire Investment Management LLC purchased a new stake in Hill-Rom Holdings during the first quarter worth $111,000. BlueMountain Capital Management LLC raised its stake in Hill-Rom Holdings by 36.5% in the second quarter. BlueMountain Capital Management LLC now owns 2,343 shares of the medical technology company’s stock worth $118,000 after buying an additional 626 shares in the last quarter. Envestnet Asset Management Inc. increased its stake in shares of Hill-Rom Holdings by 30.1% in the first quarter. Envestnet Asset Management Inc. now owns 2,454 shares of the medical technology company’s stock worth $123,000 after buying an additional 568 shares during the last quarter. LS Investment Advisors LLC increased its stake in shares of Hill-Rom Holdings by 67.4% in the second quarter. LS Investment Advisors LLC now owns 3,783 shares of the medical technology company’s stock worth $191,000 after buying an additional 1,523 shares during the last quarter. Finally, Bluestein R H & Co. bought a new stake in shares of Hill-Rom Holdings during the second quarter worth about $202,000. Institutional investors and hedge funds own 83.11% of the company’s stock.
Hill-Rom Holdings Company Profile
Hill-Rom Holdings, Inc is a medical technology company. The Company offers patient care solutions that improve clinical and economic outcomes in advancing mobility, wound care and prevention, clinical workflow, surgical safety and efficiency, and respiratory health areas. Its segments include North America, Surgical and Respiratory Care, International and Welch Allyn.
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