Zacks Investment Research Upgrades Altra Industrial Motion (AIMC) to Buy

Altra Industrial Motion (NASDAQ:AIMC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Monday. The firm currently has a $60.00 price target on the industrial products company’s stock. Zacks Investment Research‘s price target indicates a potential upside of 12.57% from the company’s previous close.

According to Zacks, “In the six months, Altra Industrial's shares have outperformed the industry. We believe that the company is poised to benefit from its solid product portfolio, exposure to diversified end markets, wide customer base and inorganic growth initiatives. For instance, the Stromag acquisition is predicted to be earnings accretive in 2017. Also, the company has been progressing well on its restructuring and cost-saving strategies. For 2017 (results not yet released), the company increased its revenue guidance to $860-$870 million from the previous projection of $850-$865 million. Non-GAAP earnings are anticipated to be within $2.00-$2.06 per share, up from the earlier forecast of $1.95-$2.05. Earnings estimates for 2018 have improved in the last 60 days.”

AIMC has been the topic of several other reports. ValuEngine cut Altra Industrial Motion from a “buy” rating to a “hold” rating in a report on Tuesday, December 26th. BidaskClub upgraded Altra Industrial Motion from a “hold” rating to a “buy” rating in a report on Wednesday, December 27th. Robert W. Baird restated a “neutral” rating on shares of Altra Industrial Motion in a report on Monday, October 23rd. Finally, Sidoti cut Altra Industrial Motion from a “buy” rating to a “neutral” rating and set a $53.00 target price on the stock. in a report on Wednesday, October 4th. They noted that the move was a valuation call. Four investment analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The company currently has an average rating of “Hold” and an average target price of $50.80.

Altra Industrial Motion (NASDAQ AIMC) traded down $0.05 during mid-day trading on Monday, reaching $53.30. The company had a trading volume of 96,913 shares, compared to its average volume of 113,664. The company has a current ratio of 2.69, a quick ratio of 1.57 and a debt-to-equity ratio of 0.77. Altra Industrial Motion has a 12 month low of $35.20 and a 12 month high of $53.70. The firm has a market cap of $1,560.00, a PE ratio of 37.80 and a beta of 1.67.

Altra Industrial Motion (NASDAQ:AIMC) last issued its earnings results on Friday, October 20th. The industrial products company reported $0.48 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.46 by $0.02. The business had revenue of $214.60 million for the quarter, compared to analysts’ expectations of $210.79 million. Altra Industrial Motion had a return on equity of 16.30% and a net margin of 4.92%. The business’s revenue for the quarter was up 24.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.35 EPS. equities research analysts anticipate that Altra Industrial Motion will post 2.05 earnings per share for the current fiscal year.

In related news, Director Lipscomb S. Michael sold 25,000 shares of the company’s stock in a transaction that occurred on Friday, October 27th. The stock was sold at an average price of $48.34, for a total value of $1,208,500.00. Following the transaction, the director now directly owns 15,848 shares in the company, valued at $766,092.32. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Craig Schuele sold 3,315 shares of the company’s stock in a transaction that occurred on Wednesday, December 27th. The shares were sold at an average price of $50.00, for a total value of $165,750.00. Following the completion of the transaction, the vice president now owns 67,886 shares in the company, valued at $3,394,300. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 28,415 shares of company stock worth $1,379,049. Insiders own 3.20% of the company’s stock.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Schwab Charles Investment Management Inc. lifted its holdings in Altra Industrial Motion by 5.5% in the fourth quarter. Schwab Charles Investment Management Inc. now owns 185,287 shares of the industrial products company’s stock valued at $9,339,000 after acquiring an additional 9,729 shares during the last quarter. Wasatch Advisors Inc. lifted its holdings in Altra Industrial Motion by 72.1% in the fourth quarter. Wasatch Advisors Inc. now owns 1,683,489 shares of the industrial products company’s stock valued at $84,848,000 after acquiring an additional 705,534 shares during the last quarter. Sheets Smith Wealth Management acquired a new position in Altra Industrial Motion in the fourth quarter valued at approximately $327,000. California Public Employees Retirement System lifted its holdings in Altra Industrial Motion by 3.3% in the third quarter. California Public Employees Retirement System now owns 54,442 shares of the industrial products company’s stock valued at $2,619,000 after acquiring an additional 1,742 shares during the last quarter. Finally, Cubist Systematic Strategies LLC acquired a new position in Altra Industrial Motion in the third quarter valued at approximately $384,000.

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About Altra Industrial Motion

Altra Industrial Motion Corp. is a designer, producer and marketer of a range of mechanical power transmission (MPT) components. The Company operates through three segments: Couplings, Clutches and Brakes; Electromagnetic Clutches and Brakes, and Gearing. It manufactures a range of couplings suitable for various industrial and specialty applications.

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