Zacks Investment Research Downgrades Harman International Industries Inc. (HAR) to Sell
Harman International Industries Inc. (NYSE:HAR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Wednesday.
According to Zacks, “Strong demand for Harman International’s infotainment and car audio systems is a major positive, in our view. The growing demand for connected cars is ably supported by Harman’s leading cloud platform and scalable technology. Apart from this, the company’s strong manufacturing capacities, growing product pipeline, solid patent portfolio and accretive acquisitions are other positives. However, the company is exposed to significant customer concentration risk with its top four customers accounting for approximately half of its revenues. Also, the automotive industry is highly competitive. Increasing competition will eventually put pricing under pressure. Estimates have been stable lately ahead of the company’s first quarter fiscal 2017 earnings release. The company has positive earnings surprise of 2.40% in trailing four quarters.”
Several other brokerages have also weighed in on HAR. Piper Jaffray Cos. started coverage on Harman International Industries in a report on Thursday, June 9th. They set a “neutral” rating and a $84.00 price objective for the company. Royal Bank Of Canada lowered Harman International Industries from an “outperform” rating to a “sector perform” rating and cut their price target for the stock from $85.00 to $73.00 in a report on Wednesday, June 29th. Wells Fargo & Co. reaffirmed an “outperform” rating and issued a $95.00 price target (up from $88.00) on shares of Harman International Industries in a report on Wednesday, August 10th. Barclays PLC reaffirmed an “overweight” rating and issued a $103.00 price target (down from $105.00) on shares of Harman International Industries in a report on Tuesday, July 19th. Finally, FBR & Co raised their price target on Harman International Industries from $85.00 to $90.00 and gave the stock a “mkt perform” rating in a report on Friday, August 5th. Three research analysts have rated the stock with a sell rating, five have issued a hold rating, eight have given a buy rating and one has issued a strong buy rating to the company. Harman International Industries currently has an average rating of “Hold” and a consensus target price of $98.88.
Harman International Industries (NYSE:HAR) opened at 83.99 on Wednesday. The firm has a market cap of $5.86 billion, a PE ratio of 16.83 and a beta of 2.06. Harman International Industries has a one year low of $64.93 and a one year high of $112.68. The firm has a 50-day moving average price of $83.89 and a 200-day moving average price of $80.55.
Harman International Industries (NYSE:HAR) last announced its quarterly earnings data on Thursday, August 4th. The company reported $1.57 earnings per share for the quarter, beating the consensus estimate of $1.52 by $0.05. Harman International Industries had a return on equity of 18.54% and a net margin of 5.23%. The business earned $1.90 billion during the quarter, compared to analyst estimates of $1.78 billion. During the same period in the prior year, the company earned $1.37 earnings per share. Harman International Industries’s revenue was up 12.1% compared to the same quarter last year. On average, equities analysts expect that Harman International Industries will post $6.85 EPS for the current fiscal year.
In related news, EVP Herbert K. Parker sold 5,006 shares of Harman International Industries stock in a transaction on Thursday, August 11th. The stock was sold at an average price of $85.03, for a total transaction of $425,660.18. Following the completion of the sale, the executive vice president now owns 17,018 shares of the company’s stock, valued at $1,447,040.54. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Michael Mauser sold 11,260 shares of Harman International Industries stock in a transaction on Saturday, September 10th. The shares were sold at an average price of $80.93, for a total value of $911,271.80. Following the sale, the executive vice president now directly owns 12,801 shares of the company’s stock, valued at approximately $1,035,984.93. The disclosure for this sale can be found here. Corporate insiders own 0.95% of the company’s stock.
Large investors have recently bought and sold shares of the stock. Fuller & Thaler Asset Management Inc. acquired a new stake in Harman International Industries during the second quarter valued at about $115,000. Tower Research Capital LLC TRC raised its stake in Harman International Industries by 15,627.3% in the second quarter. Tower Research Capital LLC TRC now owns 1,730 shares of the company’s stock valued at $124,000 after buying an additional 1,719 shares in the last quarter. Westport Resources Management Inc. raised its stake in Harman International Industries by 108.3% in the second quarter. Westport Resources Management Inc. now owns 1,875 shares of the company’s stock valued at $135,000 after buying an additional 975 shares in the last quarter. Creative Planning raised its stake in Harman International Industries by 86.9% in the second quarter. Creative Planning now owns 1,949 shares of the company’s stock valued at $140,000 after buying an additional 906 shares in the last quarter. Finally, Stephens Inc. AR raised its stake in Harman International Industries by 24.3% in the second quarter. Stephens Inc. AR now owns 2,326 shares of the company’s stock valued at $167,000 after buying an additional 454 shares in the last quarter. 95.84% of the stock is owned by institutional investors.
Harman International Industries Company Profile
Harman International Industries, Incorporated, is engaged in the designing and engineering of connected products and solutions for automakers, consumers and enterprises, including audio systems, visual products, enterprise automation solutions and connected services. The Company operates through four segments.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Harman International Industries Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Harman International Industries Inc. and related companies with MarketBeat.com's FREE daily email newsletter.