Rockwell Automation Inc. (ROK) Stock Rating Lowered by Zacks Investment Research
Rockwell Automation Inc. (NYSE:ROK) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Tuesday.
According to Zacks, “Rockwell Automation revised its fiscal 2016 adjusted EPS guidance to $5.80–$6.00 and expects revenue to dip 7% for the full year, which includes a currency headwind of about 3% and an organic sales decline of 4%. The company lowered its sales outlook due to weaker-than-expected orders and sales performance in its solutions and services businesses in the third quarter. The acquisition of MAVERICK Technologies will enhance its domain knowledge. However, continued weakness in the mining industry and lack of major projects will continue to affect Rockwell Automation’s results in the coming quarters. Moreover, unfavorable currency translation, project delays, choppy oil prices and stiff competition remain headwinds.”
A number of other brokerages have also weighed in on ROK. Berenberg Bank began coverage on Rockwell Automation in a research note on Monday. They set a “sell” rating and a $110.00 price objective for the company. Canaccord Genuity lowered Rockwell Automation from a “buy” rating to a “hold” rating and set a $94.00 price objective for the company. in a research note on Tuesday, July 26th. Credit Suisse Group AG restated a “hold” rating on shares of Rockwell Automation in a research note on Wednesday, June 22nd. Sanford C. Bernstein upgraded Rockwell Automation from an “underperform” rating to a “market perform” rating and raised their price objective for the company from $105.00 to $121.00 in a research note on Friday, September 30th. Finally, Barclays PLC reduced their target price on Rockwell Automation from $120.00 to $118.00 and set an “equal weight” rating on the stock in a report on Thursday, July 28th. Seven analysts have rated the stock with a sell rating, ten have given a hold rating and three have assigned a buy rating to the company’s stock. Rockwell Automation has a consensus rating of “Hold” and an average price target of $108.20.
Rockwell Automation (NYSE:ROK) opened at 121.24 on Tuesday. The company’s 50-day moving average price is $117.04 and its 200-day moving average price is $115.70. The firm has a market cap of $15.69 billion, a price-to-earnings ratio of 21.57 and a beta of 1.15. Rockwell Automation has a one year low of $87.53 and a one year high of $123.48.
Rockwell Automation (NYSE:ROK) last issued its quarterly earnings data on Wednesday, July 27th. The company reported $1.55 earnings per share for the quarter, beating analysts’ consensus estimates of $1.46 by $0.09. Rockwell Automation had a return on equity of 35.83% and a net margin of 12.54%. The firm earned $1.47 billion during the quarter, compared to analyst estimates of $1.49 billion. During the same quarter last year, the firm earned $1.59 EPS. Rockwell Automation’s quarterly revenue was down 6.4% on a year-over-year basis. On average, analysts anticipate that Rockwell Automation will post $5.90 EPS for the current year.
In related news, Director William T. Jr/Wi Mccormick sold 686 shares of Rockwell Automation stock in a transaction on Friday, August 5th. The stock was sold at an average price of $117.03, for a total value of $80,282.58. Following the transaction, the director now directly owns 10,951 shares in the company, valued at approximately $1,281,595.53. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP David M. Dorgan sold 2,200 shares of Rockwell Automation stock in a transaction on Tuesday, August 23rd. The stock was sold at an average price of $119.06, for a total value of $261,932.00. Following the completion of the transaction, the vice president now owns 12,500 shares in the company, valued at $1,488,250. The disclosure for this sale can be found here. Insiders own 1.54% of the company’s stock.
Several institutional investors have recently modified their holdings of the company. Vanguard Group Inc. increased its position in shares of Rockwell Automation by 0.8% in the second quarter. Vanguard Group Inc. now owns 7,919,804 shares of the company’s stock worth $909,351,000 after buying an additional 64,944 shares in the last quarter. Lazard Asset Management LLC increased its position in shares of Rockwell Automation by 7.1% in the first quarter. Lazard Asset Management LLC now owns 4,257,988 shares of the company’s stock worth $484,345,000 after buying an additional 280,916 shares in the last quarter. BlackRock Fund Advisors increased its position in shares of Rockwell Automation by 2.7% in the second quarter. BlackRock Fund Advisors now owns 2,121,240 shares of the company’s stock worth $243,561,000 after buying an additional 55,189 shares in the last quarter. Geode Capital Management LLC increased its position in shares of Rockwell Automation by 5.1% in the first quarter. Geode Capital Management LLC now owns 1,137,963 shares of the company’s stock worth $129,194,000 after buying an additional 55,683 shares in the last quarter. Finally, BlackRock Group LTD increased its position in shares of Rockwell Automation by 2.3% in the second quarter. BlackRock Group LTD now owns 1,075,498 shares of the company’s stock worth $123,490,000 after buying an additional 23,688 shares in the last quarter. Institutional investors and hedge funds own 74.29% of the company’s stock.
About Rockwell Automation
Rockwell Automation, Inc (Rockwell Automation) is a provider of industrial automation power, control and information solutions for manufacturers. The Company operates through two segments: Architecture & Software and Control Products & Solutions. The Architecture & Software segment contains various hardware, software and communication components of the Company’s integrated control and information architecture capable of controlling the customer’s industrial processes and connecting with their manufacturing enterprise.
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