Zacks Investment Research Lowers Joy Global Inc. (JOY) to Sell
Joy Global Inc. (NYSE:JOY) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday.
According to Zacks, “Joy Global could face serious challenges ahead as the regulatory pressure on coal usage would result in an almost 21% year-over-year drop in the fossil fuel’s usage in 2016. This will surely hurt Joy Global as nearly 59% of its top line is derived from coal miners. Amid such challenging market conditions, Joy Global plans to continue its restructuring activities to align the company's workforce and overall cost structure with the current and future levels of demand. Joy Global will be acquired by Japanese mining equipment maker and seller Komatsu Ltd. for nearly $2.9 billion. A definitive agreement for the acquisition was signed by the representatives of both the companies, which is expected to close in mid-2017.”
Several other brokerages also recently commented on JOY. Vetr downgraded shares of Joy Global from a “hold” rating to a “sell” rating and set a $21.00 target price on the stock. in a research note on Monday, July 11th. FBR & Co restated a “buy” rating on shares of Joy Global in a research note on Friday, July 22nd. Avondale Partners downgraded shares of Joy Global from an “outperform” rating to a “market perform” rating in a research report on Friday, July 22nd. BB&T Corp. upgraded shares of Joy Global from an “underweight” rating to a “hold” rating in a research report on Thursday, July 21st. Finally, Axiom Securities reiterated a “sell” rating on shares of Joy Global in a research report on Tuesday, August 30th. Three analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and three have given a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and an average target price of $18.73.
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Joy Global (NYSE:JOY) traded up 0.018% during trading on Tuesday, hitting $27.825. 705,446 shares of the stock traded hands. The stock’s market cap is $2.73 billion. Joy Global has a 52 week low of $8.35 and a 52 week high of $28.55. The firm’s 50-day moving average is $27.60 and its 200 day moving average is $23.11.
Joy Global (NYSE:JOY) last issued its earnings results on Thursday, September 1st. The company reported $0.10 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.12 by $0.02. Joy Global had a negative net margin of 52.93% and a positive return on equity of 2.76%. The firm earned $587 million during the quarter. During the same quarter in the previous year, the company earned $0.59 EPS. The business’s quarterly revenue was down 26.0% compared to the same quarter last year. Equities research analysts forecast that Joy Global will post $0.14 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Monday, October 3rd. Investors of record on Monday, September 19th were given a $0.01 dividend. The ex-dividend date of this dividend was Thursday, September 15th. This represents a $0.04 annualized dividend and a dividend yield of 0.14%. Joy Global’s dividend payout ratio is presently -0.29%.
Institutional investors have recently modified their holdings of the stock. Fairbanks Capital Management Inc. increased its position in Joy Global by 18.6% in the third quarter. Fairbanks Capital Management Inc. now owns 15,950 shares of the company’s stock worth $442,000 after buying an additional 2,500 shares during the period. Charter Trust Co. increased its position in Joy Global by 33.0% in the third quarter. Charter Trust Co. now owns 13,306 shares of the company’s stock worth $369,000 after buying an additional 3,300 shares during the period. Havens Advisors LLC purchased a new position in Joy Global during the third quarter worth $3,336,000. Capstone Asset Management Co. increased its position in Joy Global by 1.0% in the third quarter. Capstone Asset Management Co. now owns 26,495 shares of the company’s stock worth $735,000 after buying an additional 260 shares during the period. Finally, Creative Planning increased its position in Joy Global by 579.1% in the third quarter. Creative Planning now owns 21,955 shares of the company’s stock worth $609,000 after buying an additional 18,722 shares during the period.
Joy Global Company Profile
Joy Global Inc is a manufacturer and servicer of mining equipment for the extraction of metals and minerals. The Company manufactures and markets original equipment and parts, and performs services for both underground and surface mining, as well as certain industrial applications. Its equipment is used in mining regions to mine coal, copper, iron ore, oil sands, gold, and other minerals and ores.
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