Rockwell Automation (NYSE:ROK) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Rockwell Automation (NYSE:ROK) had its target price lifted by Morgan Stanley from $320.00 to $335.00 in a research report sent to investors on Friday morning,Benzinga reports. Morgan Stanley currently has an overweight rating on the industrial products company’s stock.

A number of other equities research analysts have also weighed in on the stock. TD Cowen reduced their target price on shares of Rockwell Automation from $220.00 to $215.00 and set a “sell” rating on the stock in a report on Thursday, August 8th. UBS Group initiated coverage on Rockwell Automation in a report on Wednesday. They issued a “neutral” rating and a $313.00 price objective for the company. Wells Fargo & Company lifted their target price on Rockwell Automation from $293.00 to $305.00 and gave the stock an “overweight” rating in a report on Monday, October 7th. Mizuho increased their price target on Rockwell Automation from $245.00 to $270.00 and gave the company a “neutral” rating in a research note on Thursday, October 17th. Finally, Robert W. Baird lifted their price objective on Rockwell Automation from $280.00 to $290.00 and gave the stock an “outperform” rating in a research note on Friday, November 8th. Three analysts have rated the stock with a sell rating, six have issued a hold rating and six have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, Rockwell Automation currently has a consensus rating of “Hold” and an average target price of $286.13.

Rockwell Automation Price Performance

Shares of ROK traded down $0.28 during trading hours on Friday, reaching $286.15. The stock had a trading volume of 1,110,722 shares, compared to its average volume of 883,885. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.17 and a current ratio of 1.08. Rockwell Automation has a 12 month low of $242.81 and a 12 month high of $312.76. The stock has a market capitalization of $32.31 billion, a PE ratio of 34.56, a PEG ratio of 2.98 and a beta of 1.36. The company’s 50-day moving average is $269.16 and its two-hundred day moving average is $266.87.

Rockwell Automation (NYSE:ROK) last posted its earnings results on Thursday, November 7th. The industrial products company reported $2.47 EPS for the quarter, beating the consensus estimate of $2.40 by $0.07. The firm had revenue of $2.04 billion during the quarter, compared to the consensus estimate of $2.06 billion. Rockwell Automation had a return on equity of 30.42% and a net margin of 11.53%. The business’s quarterly revenue was down 20.6% on a year-over-year basis. During the same period last year, the company earned $3.64 earnings per share. Research analysts expect that Rockwell Automation will post 9.46 EPS for the current year.

Rockwell Automation Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 10th. Shareholders of record on Monday, November 18th will be paid a $1.31 dividend. This represents a $5.24 dividend on an annualized basis and a yield of 1.83%. The ex-dividend date is Monday, November 18th. This is a boost from Rockwell Automation’s previous quarterly dividend of $1.25. Rockwell Automation’s dividend payout ratio (DPR) is 60.39%.

Rockwell Automation announced that its Board of Directors has approved a share buyback plan on Thursday, September 5th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the industrial products company to reacquire up to 3.4% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Insider Buying and Selling at Rockwell Automation

In other news, SVP Veena M. Lakkundi sold 579 shares of Rockwell Automation stock in a transaction dated Monday, November 4th. The shares were sold at an average price of $266.86, for a total transaction of $154,511.94. Following the completion of the transaction, the senior vice president now directly owns 4,576 shares in the company, valued at $1,221,151.36. This trade represents a 11.23 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.68% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Rockwell Automation

Several large investors have recently added to or reduced their stakes in ROK. Pathway Financial Advisers LLC purchased a new stake in shares of Rockwell Automation in the first quarter worth approximately $26,000. Richardson Financial Services Inc. raised its position in Rockwell Automation by 100.0% in the 3rd quarter. Richardson Financial Services Inc. now owns 96 shares of the industrial products company’s stock valued at $26,000 after buying an additional 48 shares during the last quarter. Ashton Thomas Securities LLC bought a new position in Rockwell Automation during the 3rd quarter valued at $26,000. ESL Trust Services LLC bought a new stake in shares of Rockwell Automation in the 1st quarter worth $29,000. Finally, Darwin Wealth Management LLC bought a new position in shares of Rockwell Automation during the third quarter valued at about $34,000. Institutional investors own 75.75% of the company’s stock.

About Rockwell Automation

Rockwell Automation, Inc provides industrial automation and digital transformation solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through three segments, Intelligent Devices, Software & Control, and Lifecycle Services. Its solutions include hardware and software products and services.