Rockwell Automation (NYSE:ROK) Reaches New 1-Year High – Should You Buy?

Shares of Rockwell Automation, Inc. (NYSE:ROK) reached a new 52-week high during mid-day trading on Monday . The company traded as high as $479.42 and last traded at $476.1640, with a volume of 29786 shares trading hands. The stock had previously closed at $473.79.

Wall Street Analyst Weigh In

ROK has been the subject of several analyst reports. Morgan Stanley reissued an “overweight” rating and issued a $525.00 price objective on shares of Rockwell Automation in a research note on Wednesday, May 6th. Evercore upped their price target on Rockwell Automation from $440.00 to $480.00 in a report on Wednesday, May 6th. Wall Street Zen lowered Rockwell Automation from a “buy” rating to a “hold” rating in a research report on Saturday, May 2nd. DA Davidson began coverage on shares of Rockwell Automation in a report on Tuesday, June 16th. They set a “neutral” rating and a $500.00 price objective on the stock. Finally, The Goldman Sachs Group upped their target price on shares of Rockwell Automation from $448.00 to $487.00 in a research note on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and twelve have assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $454.05.

Rockwell Automation Stock Performance

The company’s 50-day simple moving average is $438.17 and its 200 day simple moving average is $409.73. The stock has a market cap of $52.90 billion, a P/E ratio of 49.43, a PEG ratio of 3.03 and a beta of 1.57. The company has a current ratio of 1.09, a quick ratio of 0.76 and a debt-to-equity ratio of 0.72.

Rockwell Automation (NYSE:ROK) last released its earnings results on Tuesday, May 5th. The industrial products company reported $3.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.88 by $0.42. The company had revenue of $2.24 billion during the quarter, compared to analyst estimates of $2.16 billion. Rockwell Automation had a return on equity of 37.54% and a net margin of 12.36%.Rockwell Automation’s quarterly revenue was up 11.9% on a year-over-year basis. During the same period in the prior year, the company posted $2.45 earnings per share. Rockwell Automation has set its FY 2026 guidance at 12.500-13.100 EPS. As a group, sell-side analysts expect that Rockwell Automation, Inc. will post 13 EPS for the current fiscal year.

Rockwell Automation Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 17th will be given a dividend of $1.38 per share. The ex-dividend date of this dividend is Monday, August 17th. This represents a $5.52 annualized dividend and a dividend yield of 1.2%. Rockwell Automation’s dividend payout ratio (DPR) is currently 57.38%.

Rockwell Automation announced that its Board of Directors has initiated a stock repurchase plan on Tuesday, June 9th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the industrial products company to purchase up to 2% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity at Rockwell Automation

In related news, SVP Christopher Nardecchia sold 2,538 shares of the business’s stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $446.43, for a total value of $1,133,039.34. Following the transaction, the senior vice president directly owned 14,232 shares of the company’s stock, valued at approximately $6,353,591.76. The trade was a 15.13% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Matthew W. Fordenwalt sold 377 shares of the stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $460.51, for a total transaction of $173,612.27. Following the transaction, the senior vice president owned 4,437 shares of the company’s stock, valued at approximately $2,043,282.87. The trade was a 7.83% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 12,308 shares of company stock worth $5,339,812. 0.76% of the stock is owned by company insiders.

Institutional Investors Weigh In On Rockwell Automation

Hedge funds have recently modified their holdings of the stock. Richards Merrill & Peterson Inc. increased its holdings in Rockwell Automation by 1.9% during the 1st quarter. Richards Merrill & Peterson Inc. now owns 1,358 shares of the industrial products company’s stock valued at $487,000 after purchasing an additional 25 shares in the last quarter. Cidel Asset Management Inc. boosted its stake in Rockwell Automation by 4.6% in the first quarter. Cidel Asset Management Inc. now owns 574 shares of the industrial products company’s stock worth $206,000 after purchasing an additional 25 shares in the last quarter. HBK Sorce Advisory LLC grew its holdings in shares of Rockwell Automation by 0.7% during the fourth quarter. HBK Sorce Advisory LLC now owns 3,719 shares of the industrial products company’s stock worth $1,544,000 after purchasing an additional 27 shares during the last quarter. Johnson Investment Counsel Inc. grew its holdings in shares of Rockwell Automation by 1.9% during the fourth quarter. Johnson Investment Counsel Inc. now owns 1,412 shares of the industrial products company’s stock worth $549,000 after purchasing an additional 27 shares during the last quarter. Finally, Nations Financial Group Inc. IA ADV increased its stake in shares of Rockwell Automation by 2.0% in the fourth quarter. Nations Financial Group Inc. IA ADV now owns 1,446 shares of the industrial products company’s stock valued at $563,000 after buying an additional 28 shares in the last quarter. Institutional investors own 75.75% of the company’s stock.

About Rockwell Automation

Rockwell Automation is a global industrial automation and digital transformation company headquartered in Milwaukee, Wisconsin. The firm designs, manufactures and supports control systems, industrial control hardware and software, and related services that help manufacturers and industrial operators automate processes, improve productivity and enable data-driven decision making. Rockwell traces its heritage to the Allen-Bradley and Rockwell automation businesses and positions itself as a provider of integrated automation solutions across discrete and process industries.

The company’s product portfolio includes programmable logic controllers (PLCs), human-machine interfaces (HMIs), variable frequency drives, sensors, safety components and other industrial control hardware, often marketed under the Allen-Bradley brand.