Morgan Stanley Cuts Rockwell Automation (NYSE:ROK) Price Target to $260.00

Rockwell Automation (NYSE:ROKGet Rating) had its price target trimmed by Morgan Stanley from $277.00 to $260.00 in a research note issued to investors on Monday, The Fly reports. The brokerage currently has an overweight rating on the industrial products company’s stock.

Several other equities research analysts have also issued reports on the company. StockNews.com initiated coverage on Rockwell Automation in a research report on Thursday, March 31st. They set a hold rating on the stock. Robert W. Baird dropped their target price on Rockwell Automation from $310.00 to $255.00 in a research report on Wednesday, May 4th. Citigroup dropped their target price on Rockwell Automation from $357.00 to $310.00 in a research report on Wednesday, May 4th. HSBC dropped their target price on Rockwell Automation from $293.00 to $240.00 in a research report on Tuesday, May 10th. Finally, Oppenheimer decreased their price target on Rockwell Automation from $360.00 to $290.00 in a research note on Wednesday, May 4th. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and five have given a buy rating to the stock. According to MarketBeat.com, Rockwell Automation has a consensus rating of Hold and an average price target of $260.76.

Shares of ROK opened at $197.17 on Monday. The business’s 50 day moving average is $213.69 and its two-hundred day moving average is $266.08. Rockwell Automation has a 52-week low of $190.08 and a 52-week high of $354.99. The firm has a market cap of $22.92 billion, a price-to-earnings ratio of 35.85, a PEG ratio of 2.06 and a beta of 1.42. The company has a quick ratio of 0.78, a current ratio of 1.09 and a debt-to-equity ratio of 1.18.

Rockwell Automation (NYSE:ROKGet Rating) last announced its earnings results on Tuesday, May 3rd. The industrial products company reported $1.66 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.27 by ($0.61). Rockwell Automation had a net margin of 8.81% and a return on equity of 35.96%. The business had revenue of $1.81 billion during the quarter, compared to analyst estimates of $1.98 billion. During the same period in the previous year, the company earned $2.41 earnings per share. The business’s revenue for the quarter was up 1.8% on a year-over-year basis. On average, equities analysts expect that Rockwell Automation will post 9.22 earnings per share for the current fiscal year.

Rockwell Automation announced that its board has authorized a share buyback program on Tuesday, May 3rd that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the industrial products company to repurchase up to 4% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board of directors believes its shares are undervalued.

The company also recently declared a quarterly dividend, which will be paid on Monday, September 12th. Stockholders of record on Monday, August 15th will be paid a dividend of $1.12 per share. This represents a $4.48 dividend on an annualized basis and a dividend yield of 2.27%. The ex-dividend date is Friday, August 12th. Rockwell Automation’s dividend payout ratio (DPR) is presently 81.45%.

In related news, Director Patricia A. Watson acquired 1,110 shares of the stock in a transaction dated Thursday, May 5th. The shares were acquired at an average price of $219.58 per share, with a total value of $243,733.80. Following the acquisition, the director now owns 4,827 shares in the company, valued at approximately $1,059,912.66. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Cyril Perducat sold 664 shares of the stock in a transaction dated Thursday, June 2nd. The shares were sold at an average price of $217.75, for a total value of $144,586.00. Following the transaction, the senior vice president now directly owns 1,576 shares in the company, valued at approximately $343,174. The disclosure for this sale can be found here. 0.68% of the stock is owned by company insiders.

Several hedge funds and other institutional investors have recently modified their holdings of ROK. Vanguard Group Inc. grew its holdings in Rockwell Automation by 0.9% in the 1st quarter. Vanguard Group Inc. now owns 11,472,877 shares of the industrial products company’s stock valued at $3,212,750,000 after buying an additional 106,641 shares during the last quarter. BlackRock Inc. grew its holdings in Rockwell Automation by 2.9% in the 1st quarter. BlackRock Inc. now owns 9,227,972 shares of the industrial products company’s stock valued at $2,584,111,000 after buying an additional 261,227 shares during the last quarter. Capital World Investors grew its holdings in Rockwell Automation by 35.2% in the 4th quarter. Capital World Investors now owns 4,892,850 shares of the industrial products company’s stock valued at $1,706,871,000 after buying an additional 1,272,634 shares during the last quarter. State Street Corp grew its holdings in Rockwell Automation by 2.6% in the 4th quarter. State Street Corp now owns 4,846,228 shares of the industrial products company’s stock valued at $1,690,607,000 after buying an additional 120,708 shares during the last quarter. Finally, Alliancebernstein L.P. grew its holdings in shares of Rockwell Automation by 9.8% during the 4th quarter. Alliancebernstein L.P. now owns 1,461,253 shares of the industrial products company’s stock worth $509,758,000 after purchasing an additional 130,498 shares in the last quarter. 78.21% of the stock is currently owned by institutional investors and hedge funds.

About Rockwell Automation (Get Rating)

Rockwell Automation, Inc provides industrial automation and digital transformation solutions in the United States and internationally. The company operates in three segments, Intelligent Devices, Software & Control, and Lifecycle Services. Its solutions include hardware and software products, and services.

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