Research Analysts’ Weekly Ratings Updates for Actuant (ATU)
Several analysts have recently updated their ratings and price targets for Actuant (NYSE: ATU):
- 10/8/2016 – Actuant was given a new $22.00 price target on by analysts at BMO Capital Markets. They now have a “hold” rating on the stock.
- 10/7/2016 – Actuant was downgraded by analysts at Wells Fargo & Co. from an “outperform” rating to a “market perform” rating. They wrote, “Reaching this goal is contingent on bolt-on acquisitions, core growth above the market, and end market support. Core growth above the market is our primary concern,” senior analyst Allison Poliniak-Cusic wrote in a note.Related Link: Wells Fargo Downgrades Actuant To Market PerformDespite acknowledging Actuant’s good fundamentals, Poliniak-Cusic said the company’s investment in organic growth will take time to show meaningful progress amid significant end-market headwinds. The company’s end markets include oil and gas (mainly offshore), agriculture and industrial.Further, the tepid end-markets could also delay results of the company’s efforts to drive long-term revenue growth via expansions in product and service, end market, geographic penetration and increased channel effectiveness.”Therefore, we are moving to the sidelines and could become more constructive on the name should we see sustained progress in regards to the company’s 5-year plan, all else equal,” Poliniak-Cusic continued.It’s Not All NegativeThe analyst is also encouraged by CEO Randal Baker’s greater emphasis on operational excellence to achieve 100bps of annual margin improvement target, which implies a return to mid-teens EBIT percent.Poliniak-Cusic noted that the company is well poised for a potential recovery in macro-environment, driven by new products, greater penetration and operating leverage.The analyst, who has a valuation range of $26-$28, noted that management needs to regain investor confidence on the M&A front due to its past missteps.”An assembler (hence low capital user), ATU is a superb cash flow generator, in our opinion, that uses its cash to deleverage and acquire ‘good fit, low risk’ bolt-ons,”
- 10/1/2016 – Actuant had its “hold” rating reaffirmed by analysts at BMO Capital Markets. They now have a $22.00 price target on the stock.
- 9/28/2016 – Actuant was downgraded by analysts at TheStreet from a “hold” rating to a “sell” rating.
- 9/12/2016 – Actuant was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “Actuant is boosting its financial fundamentals benefiting from its robust Hydratight business, increased liquidity, business diversification, strategic innovations and inorganic expansions. Such bullish aspects helped the company report better-than-expected results in third-quarter fiscal 2016. However, fragile macroeconomic environment due to factors like weak energy resource prices, U.K.'s Brexit vote and slow domestic demand of emerging markets has been weighing over the demand for manufacturing and industrial companies like Actaunt. Moreover, other issues such as appreciation of U.S. dollar, extensive industry rivalry and input price fluctuations also remain major causes of worry for the company. Over the last 60 days, Zacks Consensus Estimate for the company has not changed for both fiscal 2016 and 2017.”
- 9/2/2016 – Actuant was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Actaunt's revenues and margins are currently being hurt by several industry specific headwinds. Growth of companies belonging to the manufacturing and industrial sector is being affected by lower corporate investments. Fragile macroeconomic environment due to factors like weak energy resource prices, U.K.'s Brexit vote and slow domestic demand of emerging markets has been weighing over the demand for manufacturing and industrial companies like Actaunt. Moreover, other issues such as appreciation of U.S. dollar, extensive industry rivalry and input price fluctuations also remain major causes of worry for the company. Over the last 60 days, the Zacks Consensus Estimate for the company has not changed for both fiscal 2016 and 2017.”
Shares of Actuant Co. (NYSE:ATU) traded down 2.79% during midday trading on Tuesday, reaching $22.64. The company’s stock had a trading volume of 149,777 shares. The company’s 50-day moving average price is $23.17 and its 200 day moving average price is $24.51. Actuant Co. has a 1-year low of $20.49 and a 1-year high of $27.71. The firm’s market capitalization is $1.33 billion.
Actuant (NYSE:ATU) last posted its quarterly earnings data on Wednesday, September 28th. The company reported $0.30 earnings per share for the quarter, topping the consensus estimate of $0.29 by $0.01. Actuant had a positive return on equity of 13.22% and a negative net margin of 9.15%. The business earned $275.77 million during the quarter. During the same period in the prior year, the firm posted $0.37 EPS. Actuant’s revenue for the quarter was down 8.0% on a year-over-year basis. On average, equities research analysts forecast that Actuant Co. will post ($0.01) earnings per share for the current year.
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The company also recently declared a quarterly dividend, which will be paid on Friday, October 14th. Investors of record on Friday, September 30th will be paid a dividend of $0.04 per share. The ex-dividend date of this dividend is Wednesday, September 28th. This represents a $0.16 annualized dividend and a yield of 0.69%. Actuant’s dividend payout ratio is -2.23%.
Actuant Corporation designs, manufactures and distributes a range of industrial products and systems to various end markets. The Company operates through three segments: Industrial, Energy and Engineered Solutions. The Company’s Industrial segment is primarily involved in the design, manufacture and distribution of branded hydraulic and mechanical tools to the maintenance, industrial, infrastructure and production automation markets.
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