ABB Ltd (ABB) Rating Increased to Hold at Zacks Investment Research
ABB Ltd (NYSE:ABB) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Monday.
According to Zacks, “Tough macroeconomic and geopolitical conditions have been plaguing ABB in recent times. Going forward, volatility in oil & gas markets and uncertainty in the process industries will likely be major headwinds for ABB. Also, lower capital spending in ABB’s key upstream energy end-markets will hurt its prospects. On the positive side, ABB has a robust earnings surprise history over the trailing four quarters, having beaten estimates all through. Also, year to date, ABB’s shares have outperformed the Zacks classified Machinery Electric industry’s average return. The third stage of ABB’s revamped “Next Level Strategy” will help unlock ABB’s full digital potential, increasing momentum in operational excellence and boosting the company’s brand. ABB is also benefiting from steady revenues, diligent cost-saving initiatives and improved efficiency from restructuring.”
A number of other research analysts have also recently issued reports on ABB. Deutsche Bank AG reaffirmed a “neutral” rating on shares of ABB in a report on Tuesday, March 21st. Morgan Stanley reaffirmed a “buy” rating on shares of ABB in a report on Thursday, March 23rd. Jefferies Group LLC reaffirmed a “sell” rating and issued a $18.00 price target on shares of ABB in a report on Tuesday, April 4th. BNP Paribas cut shares of ABB from an “outperform” rating to a “neutral” rating in a report on Tuesday, May 23rd. Finally, Citigroup Inc. reaffirmed a “sell” rating on shares of ABB in a report on Friday. Two equities research analysts have rated the stock with a sell rating, six have issued a hold rating and six have issued a buy rating to the company. ABB presently has an average rating of “Hold” and a consensus target price of $22.50.
ABB (NYSE ABB) traded down 1.227% during midday trading on Monday, reaching $25.039. 1,197,577 shares of the company’s stock were exchanged. The stock’s 50-day moving average is $24.84 and its 200-day moving average is $22.99. ABB has a 12-month low of $18.72 and a 12-month high of $25.83. The stock has a market capitalization of $53.68 billion, a price-to-earnings ratio of 25.369 and a beta of 1.07.
ABB (NYSE:ABB) last posted its quarterly earnings results on Thursday, April 20th. The industrial products company reported $0.28 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.27 by $0.01. The business had revenue of $7.85 billion during the quarter, compared to analysts’ expectations of $7.77 billion. ABB had a net margin of 6.47% and a return on equity of 18.92%. The business’s quarterly revenue was down .6% on a year-over-year basis. During the same quarter last year, the company posted $0.28 earnings per share. On average, equities analysts forecast that ABB will post $1.21 earnings per share for the current year.
The firm also recently disclosed an annual dividend, which was paid on Tuesday, May 30th. Stockholders of record on Thursday, April 20th were paid a $0.7546 dividend. The ex-dividend date of this dividend was Tuesday, April 18th. This represents a dividend yield of 3.28%. ABB’s payout ratio is currently 70.87%.
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Several hedge funds have recently added to or reduced their stakes in ABB. Kernodle & Katon Asset Management Group LLC acquired a new stake in ABB during the third quarter worth $102,000. First Interstate Bank raised its stake in ABB by 40.1% in the second quarter. First Interstate Bank now owns 6,065 shares of the industrial products company’s stock worth $120,000 after buying an additional 1,735 shares during the last quarter. Quantbot Technologies LP acquired a new stake in ABB during the third quarter worth $167,000. BlackRock Institutional Trust Company N.A. acquired a new stake in ABB during the first quarter worth $150,000. Finally, Smith Asset Management Group LP acquired a new stake in ABB during the second quarter worth $186,000. Hedge funds and other institutional investors own 3.63% of the company’s stock.
ABB Company Profile
ABB Ltd (ABB) is a holding company. The Company’s segments include Electrification Products, Robotics and Motion, Industrial Automation, Power Grids, and Corporate and Other. It operates through four divisions: Electrification Products, Robotics and Motion, Industrial Automation and Power Grids. It is engaged in serving customers in utilities, industry and transport and infrastructure.
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