ABB Ltd. (ABB) Downgraded by Zacks Investment Research to “Sell”
According to Zacks, “ABB has a decent earnings history, with three beats and one miss in the four trailing quarters, for an average surprise of 19.1%. ABB’s results are benefiting from diligent cost savings and higher efficiency as a result of restructuring. Nevertheless, volatility in the oil & gas industry and currency fluctuations are expected to pose as major headwinds, marring the company’s prospects. This apart, escalating geopolitical tension triggered by the Brexit referendum and weakness in key end markets are expected to play spoilsport. ABB’s recent decision to retain its Power Grids business, its least profitable unit, will increase the pressure on ABB to improve its performance. In addition, a stringent competitive environment, volatility in price of raw materials and dwindling customer expenditure are expected to add to the woes.Also, poor sales and higher restructuring costs are a concern.”
Other research analysts also recently issued research reports about the company. JPMorgan Chase & Co. restated a neutral rating on shares of ABB in a research note on Monday, June 13th. Deutsche Bank AG upgraded ABB from a sell rating to a hold rating in a research note on Friday, July 22nd. Bank of America Corp. set a $23.00 target price on ABB and gave the stock a hold rating in a research note on Tuesday. BNP Paribas upgraded ABB from an underperform rating to an outperform rating in a research report on Thursday, September 1st. Finally, Robert W. Baird lifted their price target on ABB from $21.00 to $24.00 and gave the company a neutral rating in a research report on Wednesday. Four research analysts have rated the stock with a sell rating, nine have given a hold rating and four have assigned a buy rating to the stock. ABB has a consensus rating of Hold and a consensus price target of $23.75.
Shares of ABB (NYSE:ABB) traded down 1.14% during mid-day trading on Thursday, reaching $22.62. The company had a trading volume of 1,080,459 shares. ABB has a 12-month low of $15.74 and a 12-month high of $22.92. The firm has a market capitalization of $48.11 billion, a PE ratio of 29.34 and a beta of 1.20. The stock has a 50 day moving average price of $22.29 and a 200 day moving average price of $20.88.
ABB (NYSE:ABB) last issued its earnings results on Thursday, July 21st. The company reported $0.35 EPS for the quarter, topping the consensus estimate of $0.26 by $0.09. ABB had a return on equity of 16.86% and a net margin of 4.91%. The business earned $8.68 billion during the quarter, compared to the consensus estimate of $8.83 billion. During the same quarter last year, the company earned $0.33 EPS. The firm’s revenue was down 5.3% compared to the same quarter last year. On average, equities analysts forecast that ABB will post $1.08 earnings per share for the current year.
Several institutional investors have recently bought and sold shares of the stock. Rehmann Capital Advisory Group raised its position in ABB by 0.8% in the second quarter. Rehmann Capital Advisory Group now owns 10,800 shares of the company’s stock valued at $214,000 after buying an additional 87 shares during the last quarter. Suntrust Banks Inc. raised its position in ABB by 1.5% in the second quarter. Suntrust Banks Inc. now owns 10,342 shares of the company’s stock valued at $203,000 after buying an additional 157 shares during the last quarter. FCA Corp TX raised its position in ABB by 0.3% in the second quarter. FCA Corp TX now owns 104,224 shares of the company’s stock valued at $2,067,000 after buying an additional 300 shares during the last quarter. Progressive Investment Management Corp raised its position in ABB by 0.5% in the second quarter. Progressive Investment Management Corp now owns 83,377 shares of the company’s stock valued at $1,653,000 after buying an additional 433 shares during the last quarter. Finally, Scotia Capital Inc. raised its position in ABB by 4.0% in the second quarter. Scotia Capital Inc. now owns 13,504 shares of the company’s stock valued at $269,000 after buying an additional 520 shares during the last quarter. Institutional investors and hedge funds own 3.27% of the company’s stock.
ABB Company Profile
ABB Ltd (ABB) is engaged in power and automation technologies. The Company manages its business based on five divisions: Discrete Automation and Motion, Low Voltage Products, Process Automation, Power Products and Power Systems. The Discrete Automation and Motion division provides low-voltage and medium-voltage drive products and systems for industrial, commercial and residential applications.
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