Hill-Rom Holdings Inc. (HRC) Upgraded by Zacks Investment Research to “Buy”
Hill-Rom Holdings Inc. (NYSE:HRC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Wednesday. The firm currently has a $66.00 target price on the medical technology company’s stock. Zacks Investment Research’s price target would indicate a potential upside of 11.43% from the stock’s previous close.
According to Zacks, “Post a promising third quarter by Hill-Rom, we are upbeat about the company to remain on a solid growth trajectory over the near term. The company’s year-over-year outcome was impressive along with record level of gross margin. Based on several positive catalysts, we expect the company to expand geographically in the coming quarters. Notably, in the last reported quarter, Hill-Rom posted strong growth in both Asia-Pacific and the U.S. While we remain impressed with the company’s increased bottom-line guidance for fiscal 2016, the revenue guidance was quite discouraging. Moreover, Hill-Rom’s persistent poor performance in the International front, especially in the Middle East and Latin America keeps us concerned. Unfortunately no near term improvement can be expected in the existing capital crunch condition that eventually led to economic and political downturns in these economies.”
A number of other research analysts have also recently issued reports on the stock. Morgan Stanley raised shares of Hill-Rom Holdings from an “equal weight” rating to an “overweight” rating and increased their target price for the company from $54.00 to $62.00 in a report on Thursday, June 16th. KeyCorp reaffirmed a “buy” rating and issued a $59.00 target price on shares of Hill-Rom Holdings in a report on Thursday, June 23rd. One investment analyst has rated the stock with a hold rating, five have assigned a buy rating and one has assigned a strong buy rating to the company. The company currently has an average rating of “Buy” and an average price target of $61.83.
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Hill-Rom Holdings (NYSE:HRC) traded down 0.46% on Wednesday, reaching $58.96. The company had a trading volume of 63,622 shares. The stock has a market capitalization of $3.86 billion, a PE ratio of 60.72 and a beta of 1.06. The stock has a 50 day moving average price of $58.19 and a 200 day moving average price of $52.21. Hill-Rom Holdings has a 52-week low of $42.99 and a 52-week high of $60.48.
Hill-Rom Holdings (NYSE:HRC) last posted its quarterly earnings results on Thursday, August 4th. The medical technology company reported $0.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.76 by $0.05. The firm earned $655.40 million during the quarter, compared to analysts’ expectations of $647.75 million. Hill-Rom Holdings had a net margin of 2.47% and a return on equity of 16.62%. The firm’s revenue for the quarter was up 38.1% on a year-over-year basis. During the same period in the prior year, the company posted $0.62 earnings per share. Analysts expect that Hill-Rom Holdings will post $3.33 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 30th. Stockholders of record on Friday, September 16th will be paid a dividend of $0.17 per share. The ex-dividend date is Wednesday, September 14th. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.15%. Hill-Rom Holdings’s dividend payout ratio (DPR) is 73.91%.
Several hedge funds and other institutional investors have recently modified their holdings of HRC. BlackRock Institutional Trust Company N.A. boosted its position in shares of Hill-Rom Holdings by 270.3% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 6,359,964 shares of the medical technology company’s stock worth $319,906,000 after buying an additional 4,642,638 shares during the period. FMR LLC raised its stake in shares of Hill-Rom Holdings by 45.0% in the second quarter. FMR LLC now owns 5,017,977 shares of the medical technology company’s stock worth $253,157,000 after buying an additional 1,557,285 shares during the period. Norges Bank purchased a new stake in shares of Hill-Rom Holdings during the fourth quarter worth about $42,825,000. Highbridge Capital Management LLC purchased a new stake in shares of Hill-Rom Holdings during the second quarter worth about $17,766,000. Finally, AXA raised its stake in shares of Hill-Rom Holdings by 13,543.5% in the first quarter. AXA now owns 313,800 shares of the medical technology company’s stock worth $15,784,000 after buying an additional 311,500 shares during the period. 83.11% of the stock is owned by institutional investors and hedge funds.
About Hill-Rom Holdings
Hill-Rom Holdings, Inc is a medical technology company. The Company offers patient care solutions that improve clinical and economic outcomes in advancing mobility, wound care and prevention, clinical workflow, surgical safety and efficiency, and respiratory health areas. Its segments include North America, Surgical and Respiratory Care, International and Welch Allyn.
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