Zacks Investment Research Lowers Hill-Rom Holdings Inc. (HRC) to Hold
Hill-Rom Holdings Inc. (NYSE:HRC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.
According to Zacks, “Post a promising third quarter by Hill-Rom, we are upbeat about the company to remain on a solid growth trajectory over the near term. The company’s year-over-year outcome was impressive along with record level of gross margin. Based on several positive catalysts, we expect the company to expand geographically in the coming quarters. Notably, in the last reported quarter, Hill-Rom posted strong growth in both Asia-Pacific and the U.S. While we remain impressed with the company’s increased bottom-line guidance for fiscal 2016, the revenue guidance was quite discouraging. Moreover, Hill-Rom’s persistent poor performance in the International front, especially in the Middle East and Latin America keeps us concerned. Unfortunately no near term improvement can be expected in the existing capital crunch condition that eventually led to economic and political downturns in these economies.”
A number of other research analysts have also commented on the company. KeyCorp reissued a “buy” rating and set a $59.00 price objective on shares of Hill-Rom Holdings in a report on Thursday, June 23rd. Morgan Stanley raised Hill-Rom Holdings from an “equal weight” rating to an “overweight” rating and raised their target price for the company from $54.00 to $62.00 in a report on Thursday, June 16th. One equities research analyst has rated the stock with a hold rating, four have assigned a buy rating and one has assigned a strong buy rating to the stock. The stock has a consensus rating of “Buy” and an average price target of $61.83.
Shares of Hill-Rom Holdings (NYSE:HRC) traded up 0.63% on Wednesday, reaching $61.90. The company had a trading volume of 310,114 shares. The firm has a market capitalization of $4.05 billion, a PE ratio of 63.75 and a beta of 1.14. The company’s 50-day moving average is $59.51 and its 200 day moving average is $53.24. Hill-Rom Holdings has a 12 month low of $42.99 and a 12 month high of $62.43.
Hill-Rom Holdings (NYSE:HRC) last issued its quarterly earnings data on Thursday, August 4th. The medical technology company reported $0.81 EPS for the quarter, beating the Zacks’ consensus estimate of $0.76 by $0.05. The business had revenue of $655.40 million for the quarter, compared to analyst estimates of $647.75 million. Hill-Rom Holdings had a return on equity of 16.62% and a net margin of 2.47%. The firm’s revenue for the quarter was up 38.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.62 EPS. Equities analysts forecast that Hill-Rom Holdings will post $3.33 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which was paid on Friday, September 30th. Shareholders of record on Friday, September 16th were issued a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a yield of 1.11%. The ex-dividend date was Wednesday, September 14th. Hill-Rom Holdings’s dividend payout ratio (DPR) is currently 73.91%.
A number of hedge funds have recently added to or reduced their stakes in the stock. Acrospire Investment Management LLC acquired a new stake in Hill-Rom Holdings during the first quarter worth about $111,000. BlueMountain Capital Management LLC raised its stake in Hill-Rom Holdings by 36.5% in the second quarter. BlueMountain Capital Management LLC now owns 2,343 shares of the medical technology company’s stock worth $118,000 after buying an additional 626 shares during the period. LS Investment Advisors LLC raised its stake in Hill-Rom Holdings by 67.4% in the second quarter. LS Investment Advisors LLC now owns 3,783 shares of the medical technology company’s stock worth $191,000 after buying an additional 1,523 shares during the period. Bluestein R H & Co. acquired a new stake in Hill-Rom Holdings during the second quarter worth about $202,000. Finally, Nine Chapters Capital Management LLC acquired a new stake in Hill-Rom Holdings during the second quarter worth about $212,000. 83.11% of the stock is currently owned by hedge funds and other institutional investors.
Hill-Rom Holdings Company Profile
Hill-Rom Holdings, Inc is a medical technology company. The Company offers patient care solutions that improve clinical and economic outcomes in advancing mobility, wound care and prevention, clinical workflow, surgical safety and efficiency, and respiratory health areas. Its segments include North America, Surgical and Respiratory Care, International and Welch Allyn.
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