Zacks Investment Research Lowers United Technologies (UTX) to Hold

United Technologies (NYSE:UTX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Monday.

According to Zacks, “United Technologies remains focused on four key priorities to fuel its growth momentum: flawless execution, innovation for growth, structural cost reduction and disciplined capital allocation. The acquisition of Rockwell Collins is further expected to offer a bigger clout in the industry and increase its bargaining power as the combined entity would emerge as one of the largest global aircraft equipment manufacturers. Management further increased its guidance for 2017 on healthy growth dynamics. The company also outperformed the industry in the last three months. However, United Technologies is exposed to market price volatility and availability risks related to raw materials, which hamper its ability to meet delivery schedules and increase operating costs. Fluctuations in foreign currency exchange rates affect the company’s net investment in foreign subsidiaries. High R&D costs also remain a significant challenge for the company.”

A number of other brokerages have also recently issued reports on UTX. Robert W. Baird upgraded United Technologies from a “neutral” rating to an “outperform” rating in a report on Friday, January 5th. Royal Bank of Canada set a $126.00 target price on United Technologies and gave the stock a “hold” rating in a report on Sunday, November 12th. Cowen restated a “hold” rating and set a $120.00 target price on shares of United Technologies in a report on Tuesday, October 24th. Stifel Nicolaus raised their target price on United Technologies from $122.00 to $124.00 and gave the stock a “hold” rating in a report on Wednesday, October 25th. Finally, Atlantic Securities upgraded United Technologies from a “neutral” rating to an “overweight” rating in a report on Tuesday, December 5th. Twelve investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average target price of $128.19.

Shares of United Technologies (UTX) traded down $0.69 on Monday, reaching $135.21. The company’s stock had a trading volume of 4,103,235 shares, compared to its average volume of 3,580,000. The company has a debt-to-equity ratio of 0.76, a quick ratio of 0.91 and a current ratio of 1.31. United Technologies has a 12-month low of $106.85 and a 12-month high of $137.73. The company has a market capitalization of $107,970.00, a PE ratio of 20.93, a P/E/G ratio of 2.35 and a beta of 1.07.

United Technologies (NYSE:UTX) last issued its earnings results on Tuesday, October 24th. The conglomerate reported $1.73 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.68 by $0.05. United Technologies had a return on equity of 17.66% and a net margin of 8.79%. The firm had revenue of $15.06 billion for the quarter, compared to analysts’ expectations of $14.99 billion. During the same quarter last year, the business earned $1.76 earnings per share. The company’s revenue was up 4.9% compared to the same quarter last year. equities analysts expect that United Technologies will post 6.61 earnings per share for the current fiscal year.

In other news, VP Robert J. Bailey sold 827 shares of the firm’s stock in a transaction dated Wednesday, November 29th. The stock was sold at an average price of $118.06, for a total transaction of $97,635.62. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, EVP Elizabeth B. Amato sold 4,341 shares of the firm’s stock in a transaction dated Friday, December 15th. The stock was sold at an average price of $125.92, for a total value of $546,618.72. Following the sale, the executive vice president now directly owns 29,122 shares in the company, valued at approximately $3,667,042.24. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 16,466 shares of company stock worth $2,019,274. 0.16% of the stock is currently owned by insiders.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Alexandria Capital LLC raised its position in United Technologies by 0.3% in the 2nd quarter. Alexandria Capital LLC now owns 1,078 shares of the conglomerate’s stock valued at $132,000 after buying an additional 3 shares during the last quarter. Rowland & Co. Investment Counsel ADV raised its position in United Technologies by 0.3% in the 2nd quarter. Rowland & Co. Investment Counsel ADV now owns 1,167 shares of the conglomerate’s stock valued at $143,000 after buying an additional 3 shares during the last quarter. Jackson Grant Investment Advisers Inc. raised its position in United Technologies by 0.4% in the 2nd quarter. Jackson Grant Investment Advisers Inc. now owns 1,788 shares of the conglomerate’s stock valued at $218,000 after buying an additional 8 shares during the last quarter. Vigilant Capital Management LLC raised its position in United Technologies by 0.7% in the 2nd quarter. Vigilant Capital Management LLC now owns 1,891 shares of the conglomerate’s stock valued at $231,000 after buying an additional 14 shares during the last quarter. Finally, Mosaic Family Wealth LLC raised its position in United Technologies by 0.3% in the 2nd quarter. Mosaic Family Wealth LLC now owns 4,357 shares of the conglomerate’s stock valued at $532,000 after buying an additional 14 shares during the last quarter. 80.09% of the stock is currently owned by institutional investors.

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United Technologies Company Profile

United Technologies Corporation is engaged in providing high technology products and services to the building systems and aerospace industries around the world. The Company operates through four segments: Otis; UTC Climate, Controls & Security; Pratt & Whitney, and UTC Aerospace Systems. Otis operates as an elevator and escalator manufacturing, installation and service company.

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