Terex Corp. (TEX) Lowered to Strong Sell at Zacks Investment Research
According to Zacks, “Including Material Handling & Port Solutions (MHPS) as discontinued operations, Terex expects earnings per share is expected to be between $0.85 and $1.15 in 2016, excluding restructuring and other unusual items. The company guided net sales of $4.3 billion–$4.5 billion for 2016. Its Aerial Work Platforms (AWP) segment witnessed decline in backlog and sales in the second-quarter 2016. With lower demand for replacement of machines, Terex expects this trend to persist through 2017 and anticipates sales to be down around 15% for the full year, compared to 2015. Cranes sales are also projected to be down roughly 15% for 2016. Moreover, Terex’s performance will be hurt by weak mining market and choppy oil and gas prices. The post-Brexit uncertainty also remains a concern. The company has a negative record of earnings suprises in the recent quarters. Its estimates have also gone down recently.”
Several other brokerages have also weighed in on TEX. BMO Capital Markets reissued a hold rating and issued a $24.00 price objective on shares of Terex Corp. in a research report on Monday, August 29th. Morgan Stanley reissued a hold rating and issued a $21.00 price objective on shares of Terex Corp. in a research report on Friday, September 16th. Jefferies Group lowered shares of Terex Corp. from a buy rating to a hold rating and set a $25.00 price objective on the stock. in a research report on Tuesday, August 9th. They noted that the move was a valuation call. Wells Fargo & Co. reissued a buy rating on shares of Terex Corp. in a research report on Wednesday, June 22nd. Finally, Credit Agricole SA started coverage on shares of Terex Corp. in a research report on Friday, September 30th. They issued a buy rating and a $30.00 price objective on the stock. Three analysts have rated the stock with a sell rating, ten have assigned a hold rating and five have issued a buy rating to the company’s stock. The stock currently has an average rating of Hold and an average price target of $24.09.
Terex Corp. (NYSE:TEX) opened at 24.81 on Tuesday. Terex Corp. has a 1-year low of $13.62 and a 1-year high of $25.66. The company has a 50-day moving average of $24.19 and a 200-day moving average of $23.21. The firm has a market capitalization of $2.69 billion, a price-to-earnings ratio of 50.22 and a beta of 2.93.
Terex Corp. (NYSE:TEX) last posted its quarterly earnings results on Tuesday, August 2nd. The company reported $0.64 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.54 by $0.10. Terex Corp. had a net margin of 0.92% and a return on equity of 9.63%. The firm had revenue of $1.30 billion for the quarter, compared to analyst estimates of $1.61 billion. During the same period in the prior year, the firm posted $0.78 earnings per share. The company’s quarterly revenue was down 10.1% compared to the same quarter last year. On average, equities analysts predict that Terex Corp. will post $0.96 earnings per share for the current year.
The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 19th. Investors of record on Wednesday, August 10th were issued a $0.07 dividend. The ex-dividend date of this dividend was Monday, August 8th. This represents a $0.28 dividend on an annualized basis and a yield of 1.14%. Terex Corp.’s dividend payout ratio (DPR) is presently 57.14%.
In other Terex Corp. news, insider Matthew Fearon sold 3,632 shares of the firm’s stock in a transaction that occurred on Friday, September 9th. The shares were sold at an average price of $24.69, for a total transaction of $89,674.08. Following the completion of the transaction, the insider now owns 111,114 shares in the company, valued at approximately $2,743,404.66. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CAO Mark I. Clair sold 7,489 shares of the firm’s stock in a transaction that occurred on Tuesday, August 9th. The stock was sold at an average price of $24.23, for a total transaction of $181,458.47. The disclosure for this sale can be found here. 3.70% of the stock is currently owned by corporate insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TEX. IBM Retirement Fund raised its position in Terex Corp. by 1.1% in the second quarter. IBM Retirement Fund now owns 10,682 shares of the company’s stock valued at $217,000 after buying an additional 113 shares during the last quarter. Northwestern Mutual Investment Management Company LLC raised its position in Terex Corp. by 0.6% in the second quarter. Northwestern Mutual Investment Management Company LLC now owns 18,852 shares of the company’s stock valued at $383,000 after buying an additional 116 shares during the last quarter. PNC Financial Services Group Inc. raised its position in Terex Corp. by 3.8% in the second quarter. PNC Financial Services Group Inc. now owns 8,875 shares of the company’s stock valued at $182,000 after buying an additional 323 shares during the last quarter. Farmers & Merchants Investments Inc. raised its position in Terex Corp. by 0.9% in the second quarter. Farmers & Merchants Investments Inc. now owns 36,813 shares of the company’s stock valued at $748,000 after buying an additional 346 shares during the last quarter. Finally, Utah Retirement Systems raised its position in Terex Corp. by 2.1% in the second quarter. Utah Retirement Systems now owns 19,211 shares of the company’s stock valued at $390,000 after buying an additional 400 shares during the last quarter. Hedge funds and other institutional investors own 81.01% of the company’s stock.
Terex Corp. Company Profile
Terex Corporation is a lifting and material handling solutions company. The Company is focused on providing its operations and delivering solutions for a range of commercial applications, including the construction, infrastructure, mining, manufacturing, transportation, energy and utility industries.
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