Rockwell Automation, Inc. (NYSE:ROK) Given Average Recommendation of “Hold” by Brokerages

Rockwell Automation, Inc. (NYSE:ROK) has received a consensus recommendation of “Hold” from the fourteen research firms that are covering the firm, MarketBeat Ratings reports. Three equities research analysts have rated the stock with a sell rating, five have issued a hold rating and six have issued a buy rating on the company. The average 1 year price target among brokerages that have issued ratings on the stock in the last year is $284.21.

A number of analysts have weighed in on ROK shares. TD Cowen decreased their target price on shares of Rockwell Automation from $220.00 to $215.00 and set a “sell” rating on the stock in a research note on Thursday, August 8th. Oppenheimer lifted their price target on shares of Rockwell Automation from $288.00 to $300.00 and gave the stock an “outperform” rating in a report on Friday, November 8th. Mizuho lifted their price target on shares of Rockwell Automation from $245.00 to $270.00 and gave the stock a “neutral” rating in a report on Thursday, October 17th. Morgan Stanley started coverage on shares of Rockwell Automation in a report on Friday, September 6th. They set an “overweight” rating and a $320.00 price target on the stock. Finally, Wells Fargo & Company lifted their price target on shares of Rockwell Automation from $293.00 to $305.00 and gave the stock an “overweight” rating in a report on Monday, October 7th.

Rockwell Automation Stock Performance

NYSE ROK opened at $277.88 on Wednesday. The firm’s fifty day moving average price is $267.03 and its two-hundred day moving average price is $266.57. The stock has a market cap of $31.53 billion, a PE ratio of 33.55, a PEG ratio of 4.74 and a beta of 1.36. Rockwell Automation has a fifty-two week low of $242.81 and a fifty-two week high of $312.76. The company has a debt-to-equity ratio of 0.70, a quick ratio of 0.68 and a current ratio of 1.84.

Rockwell Automation (NYSE:ROK) last posted its earnings results on Thursday, November 7th. The industrial products company reported $2.47 earnings per share for the quarter, topping analysts’ consensus estimates of $2.40 by $0.07. The firm had revenue of $2.04 billion for the quarter, compared to analysts’ expectations of $2.06 billion. Rockwell Automation had a net margin of 11.53% and a return on equity of 30.42%. The company’s revenue was down 20.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.64 earnings per share. On average, equities analysts expect that Rockwell Automation will post 9.56 EPS for the current fiscal year.

Rockwell Automation declared that its Board of Directors has authorized a stock repurchase plan on Thursday, September 5th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the industrial products company to reacquire up to 3.4% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s management believes its shares are undervalued.

Rockwell Automation Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 10th. Investors of record on Monday, November 18th will be issued a $1.31 dividend. This is a positive change from Rockwell Automation’s previous quarterly dividend of $1.25. The ex-dividend date of this dividend is Monday, November 18th. This represents a $5.24 annualized dividend and a yield of 1.89%. Rockwell Automation’s payout ratio is presently 60.39%.

Insider Activity

In other news, SVP Veena M. Lakkundi sold 579 shares of the company’s stock in a transaction dated Monday, November 4th. The shares were sold at an average price of $266.86, for a total transaction of $154,511.94. Following the transaction, the senior vice president now owns 4,576 shares in the company, valued at approximately $1,221,151.36. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.68% of the company’s stock.

Hedge Funds Weigh In On Rockwell Automation

Institutional investors have recently made changes to their positions in the stock. Pathway Financial Advisers LLC acquired a new position in shares of Rockwell Automation during the first quarter valued at about $26,000. Richardson Financial Services Inc. raised its holdings in shares of Rockwell Automation by 100.0% during the third quarter. Richardson Financial Services Inc. now owns 96 shares of the industrial products company’s stock valued at $26,000 after purchasing an additional 48 shares during the period. Ashton Thomas Securities LLC bought a new stake in shares of Rockwell Automation during the third quarter worth about $26,000. ESL Trust Services LLC bought a new stake in shares of Rockwell Automation during the first quarter worth about $29,000. Finally, Darwin Wealth Management LLC bought a new stake in shares of Rockwell Automation during the third quarter worth about $34,000. Institutional investors and hedge funds own 75.75% of the company’s stock.

About Rockwell Automation

Rockwell Automation, Inc provides industrial automation and digital transformation solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through three segments, Intelligent Devices, Software & Control, and Lifecycle Services. Its solutions include hardware and software products and services.