Stock Traders Buy Large Volume of Call Options on Emerson Electric (NYSE:EMR)

Emerson Electric Co. (NYSE:EMR) saw some unusual options trading on Wednesday. Traders acquired 3,480 call options on the stock. This is an increase of approximately 95% compared to the average volume of 1,789 call options.

Key Stories Impacting Emerson Electric

Here are the key news stories impacting Emerson Electric this week:

• Positive Sentiment: Company raised FY‑2026 EPS guidance to $6.40–$6.55 and reported Q1 results that beat profit estimates; management cited AI‑enabled products and strong North America orders as growth drivers. This is the main fundamental positive supporting the rally in analyst targets. Article Title
• Positive Sentiment: Large price‑target upgrades from full‑service brokers highlight upside expectations: Evercore and KeyCorp moved targets to $185 (both citing stronger outlooks), signaling ~22%+ upside from recent levels. Evercore note KeyCorp note
• Positive Sentiment: Additional upward PT revisions from Citigroup, RBC, Wolfe, Daiwa, HSBC and others — examples include Citigroup to $174, RBC to $176, Wolfe/Daiwa to the $177–$177 range — reinforcing analyst conviction after results. These moves underpin longer‑term upside narratives. Citigroup/Benzinga RBC note
• Neutral Sentiment: Company declared a quarterly dividend (payment in March; ex‑dividend Feb 13), which supports income investors but is unlikely to move the stock materially on its own. Dividend announcement / transcript
• Neutral Sentiment: Unusually large options activity with elevated call buying was reported, indicating some traders are positioning for upside — a near‑term bullish signal but not definitive. Options activity
• Neutral Sentiment: Media mentions (e.g., CNBC items) included Emerson among other final trades; such coverage can increase flow but is not a primary driver versus earnings and analyst actions. CNBC mention
• Negative Sentiment: Deutsche Bank downgraded EMR from Buy to Hold (PT $170), introducing some sell‑side conflict and likely contributing to intraday weakness as investors digest mixed analyst views. Deutsche Bank note Finviz

Analyst Ratings Changes

Several research analysts recently weighed in on EMR shares. Oppenheimer reaffirmed a “market perform” rating on shares of Emerson Electric in a research report on Tuesday, January 27th. TD Cowen downgraded Emerson Electric from a “buy” rating to a “hold” rating and set a $150.00 price objective on the stock. in a report on Friday, January 9th. Jefferies Financial Group boosted their target price on Emerson Electric from $150.00 to $160.00 and gave the stock a “hold” rating in a report on Thursday. Wolfe Research raised their price target on shares of Emerson Electric from $172.00 to $177.00 and gave the company an “outperform” rating in a report on Thursday. Finally, KeyCorp boosted their price objective on shares of Emerson Electric from $155.00 to $185.00 and gave the stock an “overweight” rating in a research note on Thursday. Ten investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Emerson Electric currently has a consensus rating of “Hold” and an average price target of $163.50.

Insider Buying and Selling at Emerson Electric

In other Emerson Electric news, CEO Surendralal Lanca Karsanbhai sold 7,263 shares of the company’s stock in a transaction dated Wednesday, December 3rd. The shares were sold at an average price of $133.00, for a total value of $965,979.00. Following the sale, the chief executive officer owned 196,292 shares of the company’s stock, valued at $26,106,836. This represents a 3.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 0.23% of the stock is currently owned by corporate insiders.

Institutional Trading of Emerson Electric

Large investors have recently added to or reduced their stakes in the business. AustralianSuper Pty Ltd acquired a new position in shares of Emerson Electric during the third quarter valued at $950,000. Cahill Financial Advisors Inc. bought a new stake in Emerson Electric during the 3rd quarter worth about $823,000. Coldstream Capital Management Inc. boosted its stake in shares of Emerson Electric by 18.3% in the 2nd quarter. Coldstream Capital Management Inc. now owns 21,378 shares of the industrial products company’s stock valued at $2,850,000 after purchasing an additional 3,308 shares during the last quarter. Marshall Wace LLP grew its position in shares of Emerson Electric by 74.4% during the 2nd quarter. Marshall Wace LLP now owns 1,286,755 shares of the industrial products company’s stock worth $171,563,000 after buying an additional 548,795 shares during the period. Finally, National Pension Service raised its stake in shares of Emerson Electric by 2.6% during the third quarter. National Pension Service now owns 1,399,800 shares of the industrial products company’s stock worth $183,626,000 after buying an additional 34,882 shares during the last quarter. 74.30% of the stock is currently owned by institutional investors and hedge funds.

Emerson Electric Stock Performance

Shares of EMR stock opened at $151.26 on Friday. The company has a debt-to-equity ratio of 0.37, a current ratio of 0.84 and a quick ratio of 0.65. The company’s fifty day moving average price is $141.22 and its two-hundred day moving average price is $136.23. The firm has a market capitalization of $85.01 billion, a P/E ratio of 36.98, a P/E/G ratio of 2.52 and a beta of 1.26. Emerson Electric has a 12 month low of $90.06 and a 12 month high of $160.13.

Emerson Electric (NYSE:EMR) last released its earnings results on Tuesday, February 3rd. The industrial products company reported $1.46 EPS for the quarter, beating the consensus estimate of $1.41 by $0.05. The company had revenue of $4.35 billion during the quarter, compared to analysts’ expectations of $4.37 billion. Emerson Electric had a return on equity of 17.25% and a net margin of 12.72%.The business’s revenue was up 4.1% on a year-over-year basis. During the same period in the prior year, the business posted $1.38 EPS. Emerson Electric has set its FY 2026 guidance at 6.400-6.550 EPS and its Q2 2026 guidance at 1.500-1.550 EPS. On average, research analysts anticipate that Emerson Electric will post 5.96 earnings per share for the current fiscal year.

Emerson Electric declared that its board has initiated a share buyback plan on Wednesday, November 5th that authorizes the company to buyback $0.00 in shares. This buyback authorization authorizes the industrial products company to reacquire shares of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.

Emerson Electric Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Friday, February 13th will be paid a $0.555 dividend. This represents a $2.22 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date is Friday, February 13th. Emerson Electric’s payout ratio is presently 54.28%.

About Emerson Electric

Emerson Electric Co is a global technology and engineering company that designs and manufactures products and provides services for industrial, commercial and consumer markets. Founded in 1890, the company is headquartered in St. Louis, Missouri, and has built a long-standing presence in automation, control and climate-related technologies. Emerson’s offerings are aimed at improving productivity, energy efficiency and reliability for a wide range of end markets.

Emerson operates through two principal platforms—Automation Solutions and Commercial & Residential Solutions—providing process automation systems, measurement and analytical instrumentation, valves and actuators, control software, and related aftermarket services, alongside products for heating, ventilation and refrigeration, residential and commercial climate controls, tools and storage solutions.