Zacks Investment Research Downgrades Parker-Hannifin Corp. (PH) to Hold
Parker-Hannifin Corp. (NYSE:PH) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Monday.
According to Zacks, “Parker-Hannifin has a robust earnings surprise history, with consecutive earnings beats in the four trailing quarters. The company has been seeing robust bottom line growth, largely driven by the new Win Strategy and sustained reduction in the cost of sales. Parker-Hannifin has benefited tremendously from the global restructuring initiatives undertaken over the past few quarters. Going forward, the company expects to gain traction from improving demand and incremental savings from its realignment actions. However, prolonged softness in the natural resources market, particularly oil and gas, agriculture, mining and construction equipment is proving to be major concern for the company. Also, currency volatality and escalating restructuring charges are adding to the company’s woes. Further, Parker-Hannifin’s realignment plan, although beneficial in the long run, continues to be a drag on the company’s near-term financials.”
Several other analysts also recently weighed in on the company. Avondale Partners reaffirmed a “market perform” rating on shares of Parker-Hannifin Corp. in a research note on Monday, October 10th. Goldman Sachs Group Inc. raised Parker-Hannifin Corp. from a “sell” rating to a “neutral” rating and lifted their target price for the company from $106.00 to $120.00 in a research note on Tuesday, October 11th. Stifel Nicolaus raised Parker-Hannifin Corp. from a “hold” rating to a “buy” rating and lifted their target price for the company from $131.00 to $141.00 in a research note on Wednesday, October 5th. Jefferies Group reaffirmed a “hold” rating on shares of Parker-Hannifin Corp. in a research note on Monday, September 12th. Finally, KeyCorp reaffirmed a “buy” rating and set a $136.00 target price on shares of Parker-Hannifin Corp. in a research note on Thursday, September 8th. Two analysts have rated the stock with a sell rating, twelve have given a hold rating and six have given a buy rating to the company. Parker-Hannifin Corp. presently has a consensus rating of “Hold” and a consensus target price of $117.88.
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Shares of Parker-Hannifin Corp. (NYSE:PH) traded up 0.32% on Monday, reaching $124.94. The company had a trading volume of 295,326 shares. The company has a market capitalization of $16.73 billion, a price-to-earnings ratio of 21.21 and a beta of 1.49. Parker-Hannifin Corp. has a 12 month low of $83.32 and a 12 month high of $128.24. The stock has a 50 day moving average price of $123.42 and a 200-day moving average price of $116.19.
Parker-Hannifin Corp. (NYSE:PH) last announced its earnings results on Thursday, August 4th. The company reported $1.90 earnings per share for the quarter, beating the consensus estimate of $1.75 by $0.15. The firm had revenue of $2.96 billion for the quarter, compared to the consensus estimate of $2.93 billion. Parker-Hannifin Corp. had a return on equity of 18.37% and a net margin of 7.10%. The firm’s revenue for the quarter was down 6.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.73 EPS. Analysts forecast that Parker-Hannifin Corp. will post $6.80 EPS for the current fiscal year.
In other Parker-Hannifin Corp. news, VP Robert W. Bond sold 14,043 shares of the business’s stock in a transaction dated Thursday, September 8th. The stock was sold at an average price of $124.51, for a total value of $1,748,493.93. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, COO Lee C. Banks sold 10,953 shares of the business’s stock in a transaction dated Wednesday, August 17th. The stock was sold at an average price of $124.28, for a total value of $1,361,238.84. Following the completion of the sale, the chief operating officer now directly owns 99,977 shares of the company’s stock, valued at approximately $12,425,141.56. The disclosure for this sale can be found here. Corporate insiders own 2.73% of the company’s stock.
Several hedge funds have recently made changes to their positions in PH. Anchor Bolt Capital LP bought a new stake in shares of Parker-Hannifin Corp. during the first quarter worth $88,431,000. PGGM Investments boosted its stake in shares of Parker-Hannifin Corp. by 10.7% in the second quarter. PGGM Investments now owns 369,816 shares of the company’s stock worth $39,959,000 after buying an additional 35,677 shares in the last quarter. Beutel Goodman & Co Ltd. bought a new stake in shares of Parker-Hannifin Corp. during the second quarter worth $103,826,000. Legal & General Group Plc boosted its stake in shares of Parker-Hannifin Corp. by 2.0% in the first quarter. Legal & General Group Plc now owns 600,269 shares of the company’s stock worth $66,678,000 after buying an additional 11,657 shares in the last quarter. Finally, Smith Asset Management Group LP bought a new stake in shares of Parker-Hannifin Corp. during the second quarter worth $21,954,000. 80.85% of the stock is owned by institutional investors.
About Parker-Hannifin Corp.
Parker-Hannifin Corporation is a manufacturer of motion and control technologies and systems, providing precision engineered solutions for a range of mobile, industrial and aerospace markets. The Company operates through segments: Diversified Industrial and Aerospace Systems. The Diversified Industrial Segment is an aggregation of several business units, which manufacture motion-control and fluid power system components for builders and users of various types of manufacturing, packaging, processing, transportation, agricultural, construction, and military vehicles and equipment.
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