Zacks Investment Research Lowers Terex Corp. (TEX) to Strong Sell
Terex Corp. (NYSE:TEX) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report issued on Tuesday.
According to Zacks, “Including Material Handling & Port Solutions (MHPS) as discontinued operations, Terex expects earnings per share is expected to be between $0.85 and $1.15 in 2016, excluding restructuring and other unusual items. The company guided net sales of $4.3 billion–$4.5 billion for 2016. Its Aerial Work Platforms (AWP) segment witnessed decline in backlog and sales in the second-quarter 2016. With lower demand for replacement of machines, Terex expects this trend to persist through 2017 and anticipates sales to be down around 15% for the full year, compared to 2015. Cranes sales are also projected to be down roughly 15% for 2016. Moreover, Terex’s performance will be hurt by weak mining market and choppy oil and gas prices. The post-Brexit uncertainty also remains a concern. The company has a negative record of earnings suprises in the recent quarters. Its estimates have also gone down recently.”
TEX has been the topic of a number of other research reports. Morgan Stanley reiterated a “hold” rating and issued a $21.00 target price on shares of Terex Corp. in a report on Friday, September 16th. BMO Capital Markets reiterated a “hold” rating and issued a $24.00 target price on shares of Terex Corp. in a report on Monday, August 29th. Credit Agricole SA initiated coverage on Terex Corp. in a report on Friday. They issued a “buy” rating and a $30.00 target price on the stock. Deutsche Bank AG initiated coverage on Terex Corp. in a research report on Tuesday, September 6th. They issued a “hold” rating and a $26.00 price objective on the stock. Finally, Jefferies Group lowered Terex Corp. from a “buy” rating to a “hold” rating and set a $25.00 price objective on the stock. in a research report on Tuesday, August 9th. They noted that the move was a valuation call. Three equities research analysts have rated the stock with a sell rating, ten have given a hold rating and five have assigned a buy rating to the company. The company has an average rating of “Hold” and a consensus price target of $24.09.
Shares of Terex Corp. (NYSE:TEX) traded down 1.981% during mid-day trading on Tuesday, hitting $24.495. The company had a trading volume of 423,477 shares. The stock’s 50-day moving average is $24.18 and its 200-day moving average is $23.22. Terex Corp. has a 52-week low of $13.62 and a 52-week high of $25.66. The stock has a market cap of $2.66 billion, a price-to-earnings ratio of 49.585 and a beta of 2.93.
Terex Corp. (NYSE:TEX) last issued its earnings results on Tuesday, August 2nd. The company reported $0.64 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.54 by $0.10. Terex Corp. had a return on equity of 9.63% and a net margin of 0.92%. The firm had revenue of $1.30 billion for the quarter, compared to analysts’ expectations of $1.61 billion. During the same quarter last year, the firm earned $0.78 earnings per share. The firm’s revenue for the quarter was down 10.1% compared to the same quarter last year. Equities analysts forecast that Terex Corp. will post $0.96 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Monday, September 19th. Investors of record on Wednesday, August 10th were issued a $0.07 dividend. This represents a $0.28 annualized dividend and a yield of 1.12%. The ex-dividend date was Monday, August 8th. Terex Corp.’s dividend payout ratio is currently 57.14%.
In other Terex Corp. news, insider Matthew Fearon sold 3,632 shares of Terex Corp. stock in a transaction that occurred on Friday, September 9th. The stock was sold at an average price of $24.69, for a total value of $89,674.08. Following the completion of the transaction, the insider now directly owns 111,114 shares in the company, valued at $2,743,404.66. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CAO Mark I. Clair sold 7,489 shares of Terex Corp. stock in a transaction that occurred on Tuesday, August 9th. The shares were sold at an average price of $24.23, for a total value of $181,458.47. The disclosure for this sale can be found here. 3.70% of the stock is owned by corporate insiders.
A number of institutional investors have recently modified their holdings of TEX. Pacad Investment Ltd. increased its position in shares of Terex Corp. by 148.4% in the first quarter. Pacad Investment Ltd. now owns 30,300 shares of the company’s stock worth $754,000 after buying an additional 18,100 shares during the last quarter. Franklin Resources Inc. increased its position in shares of Terex Corp. by 55.1% in the first quarter. Franklin Resources Inc. now owns 287,000 shares of the company’s stock worth $7,141,000 after buying an additional 102,000 shares during the last quarter. BlackRock Inc. increased its position in shares of Terex Corp. by 9.6% in the first quarter. BlackRock Inc. now owns 49,600 shares of the company’s stock worth $1,234,000 after buying an additional 4,347 shares during the last quarter. BlackRock Group LTD increased its position in shares of Terex Corp. by 31.0% in the first quarter. BlackRock Group LTD now owns 85,515 shares of the company’s stock worth $2,126,000 after buying an additional 20,240 shares during the last quarter. Finally, Landscape Capital Management L.L.C. increased its position in shares of Terex Corp. by 31.7% in the first quarter. Landscape Capital Management L.L.C. now owns 49,100 shares of the company’s stock worth $1,222,000 after buying an additional 11,821 shares during the last quarter. Institutional investors own 81.01% of the company’s stock.
About Terex Corp.
Terex Corporation is a lifting and material handling solutions company. The Company is focused on providing its operations and delivering solutions for a range of commercial applications, including the construction, infrastructure, mining, manufacturing, transportation, energy and utility industries.
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