Altra Industrial Motion (AIMC) Earns Strong Sell Rating from Zacks Investment Research
Altra Industrial Motion (NASDAQ:AIMC)‘s stock had its “strong sell” rating reissued by Zacks Investment Research in a report issued on Monday.
According to Zacks, “In third-quarter 2018, Altra Industrial's earnings and sales surpassed the respective estimates by 8.5% and 1.1%. However, the company's shares have underperformed the industry, over the past three months. Also, over time, the company has been grappling with the adverse impacts of rising costs and expenses. We believe, if unchecked, higher costs and operating expenses will prove detrimental to the company's margins and profitability. Also, it looks relatively more leveraged than the industry. Moreover, given the company’s presence in a number of end-markets, a downturn in one or more of these markets may further affect operations. Also, Altra Industrial's lower cash ratio indicates its inability to pay off its short-term liabilities while a falling ratio seems to be worsening the situation.”
A number of other equities analysts have also commented on the stock. BMO Capital Markets decreased their price objective on shares of Altra Industrial Motion from $56.00 to $48.00 and set an “outperform” rating for the company in a research note on Friday, October 26th. BidaskClub lowered shares of Altra Industrial Motion from a “sell” rating to a “strong sell” rating in a research note on Tuesday, October 23rd. ValuEngine lowered shares of Altra Industrial Motion from a “hold” rating to a “sell” rating in a research note on Friday, October 19th. Sidoti raised shares of Altra Industrial Motion from a “neutral” rating to a “buy” rating and set a $51.00 price objective for the company in a research note on Thursday, August 30th. Finally, Robert W. Baird reaffirmed a “buy” rating and issued a $52.00 price objective on shares of Altra Industrial Motion in a research note on Friday, July 20th. Three investment analysts have rated the stock with a sell rating and four have issued a buy rating to the stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $50.40.
Altra Industrial Motion (NASDAQ:AIMC) last posted its quarterly earnings data on Thursday, October 25th. The industrial products company reported $0.64 EPS for the quarter, topping analysts’ consensus estimates of $0.59 by $0.05. Altra Industrial Motion had a net margin of 5.68% and a return on equity of 17.72%. The firm had revenue of $228.48 million during the quarter, compared to analyst estimates of $225.89 million. Equities analysts forecast that Altra Industrial Motion will post 2.39 earnings per share for the current fiscal year.
In related news, Chairman Carl R. Christenson bought 5,000 shares of the firm’s stock in a transaction on Tuesday, October 30th. The stock was bought at an average price of $31.44 per share, with a total value of $157,200.00. Following the purchase, the chairman now directly owns 96,697 shares of the company’s stock, valued at approximately $3,040,153.68. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Company insiders own 3.20% of the company’s stock.
Several large investors have recently modified their holdings of the business. Xact Kapitalforvaltning AB boosted its stake in shares of Altra Industrial Motion by 33.8% during the 1st quarter. Xact Kapitalforvaltning AB now owns 5,537 shares of the industrial products company’s stock valued at $254,000 after buying an additional 1,400 shares during the period. Northern Trust Corp boosted its stake in shares of Altra Industrial Motion by 0.4% during the 2nd quarter. Northern Trust Corp now owns 368,856 shares of the industrial products company’s stock valued at $15,898,000 after buying an additional 1,596 shares during the period. Rhumbline Advisers boosted its stake in shares of Altra Industrial Motion by 7.2% during the 2nd quarter. Rhumbline Advisers now owns 32,080 shares of the industrial products company’s stock valued at $1,383,000 after buying an additional 2,160 shares during the period. Zebra Capital Management LLC boosted its stake in shares of Altra Industrial Motion by 13.2% during the 2nd quarter. Zebra Capital Management LLC now owns 18,838 shares of the industrial products company’s stock valued at $812,000 after buying an additional 2,193 shares during the period. Finally, WealthTrust Fairport LLC boosted its stake in shares of Altra Industrial Motion by 131.4% during the 2nd quarter. WealthTrust Fairport LLC now owns 3,934 shares of the industrial products company’s stock valued at $170,000 after buying an additional 2,234 shares during the period.
Altra Industrial Motion Company Profile
Altra Industrial Motion Corp. designs, produces, and markets mechanical power transmission components worldwide. The company operates through three segments: Couplings, Clutches and Brakes; Electromagnetic Clutches and Brakes; and Gearing. It offers coupling products under the Ameridrives, Bibby, Lamiflex, TB Wood's, Huco Dynatork, Guardian, and Stromag brands for food processing, oil and gas, power generation, material handling, medical, metals, mining, and mobile off-highway markets; and heavy duty clutches and brakes under the Wichita Clutch, Twiflex, Industrial Clutch, Svendborg Brakes, and Stromag brands for use in metal forming, oil and gas drilling platforms, mining, material handling, marine, and wind turbine applications.
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