Hill-Rom Holdings Inc. (HRC) Upgraded to “Buy” at Zacks Investment Research
Hill-Rom Holdings Inc. (NYSE:HRC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Wednesday. The brokerage currently has a $66.00 target price on the medical technology company’s stock. Zacks Investment Research’s price objective would indicate a potential upside of 10.46% from the stock’s current price.
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.”
Several other analysts also recently commented on the stock. KeyCorp reiterated a “buy” rating and issued a $59.00 target price on shares of Hill-Rom Holdings in a report on Thursday, June 23rd. Morgan Stanley upgraded 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. One investment analyst has rated the stock with a hold rating, five have given a buy rating and one has given a strong buy rating to the company’s stock. The company presently has an average rating of “Buy” and an average price target of $61.83.
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Shares of Hill-Rom Holdings (NYSE:HRC) traded up 0.88% during mid-day trading on Wednesday, hitting $59.75. 249,493 shares of the stock were exchanged. Hill-Rom Holdings has a 52 week low of $42.99 and a 52 week high of $60.48. The stock has a market capitalization of $3.91 billion, a price-to-earnings ratio of 61.53 and a beta of 1.06. The stock’s 50-day moving average is $58.19 and its 200-day moving average is $52.21.
Hill-Rom Holdings (NYSE:HRC) last announced its earnings results on Thursday, August 4th. The medical technology company reported $0.81 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.76 by $0.05. The company earned $655.40 million during the quarter, compared to the consensus estimate 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 quarter in the prior year, the company posted $0.62 earnings per share. Analysts forecast that Hill-Rom Holdings will post $3.33 earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 30th. Investors of record on Friday, September 16th will be issued a dividend of $0.17 per share. The ex-dividend date of this dividend is Wednesday, September 14th. This represents a $0.68 dividend on an annualized basis and a yield of 1.14%. Hill-Rom Holdings’s dividend payout ratio (DPR) is presently 73.91%.
A number of hedge funds have recently bought and sold shares of HRC. Mason Street Advisors LLC bought a new stake in Hill-Rom Holdings during the second quarter worth about $1,309,000. Public Employees Retirement System of Ohio increased its stake in Hill-Rom Holdings by 5.6% in the second quarter. Public Employees Retirement System of Ohio now owns 36,353 shares of the medical technology company’s stock worth $1,834,000 after buying an additional 1,935 shares during the period. Calvert Investment Management Inc. bought a new stake in Hill-Rom Holdings during the second quarter worth about $3,125,000. Stifel Financial Corp increased its stake in Hill-Rom Holdings by 10.0% in the second quarter. Stifel Financial Corp now owns 4,955 shares of the medical technology company’s stock worth $250,000 after buying an additional 451 shares during the period. Finally, Amalgamated Bank increased its stake in Hill-Rom Holdings by 60.2% in the second quarter. Amalgamated Bank now owns 11,143 shares of the medical technology company’s stock worth $644,000 after buying an additional 4,186 shares during the period. Institutional investors and hedge funds own 83.11% of the company’s stock.
Hill-Rom Holdings Company Profile
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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