Joy Global Inc. (JOY) Downgraded by Zacks Investment Research to “Sell”
According to Zacks, “Joy Global could face serious challenges ahead as the regulatory pressure on coal usage would result in an almost 21% year-over-year drop in the fossil fuel’s usage in 2016. This will surely hurt Joy Global as nearly 59% of its top line is derived from coal miners. Amid such challenging market conditions, Joy Global plans to continue its restructuring activities to align the company's workforce and overall cost structure with the current and future levels of demand. Joy Global will be acquired by Japanese mining equipment maker and seller Komatsu Ltd. for nearly $2.9 billion. A definitive agreement for the acquisition was signed by the representatives of both the companies, which is expected to close in mid-2017.”
JOY has been the subject of several other research reports. BMO Capital Markets reaffirmed a hold rating and set a $28.00 target price on shares of Joy Global in a research note on Tuesday, September 20th. Vetr raised shares of Joy Global from a strong sell rating to a buy rating and set a $30.44 target price for the company in a research note on Monday, August 22nd. Avondale Partners lowered shares of Joy Global from an outperform rating to a market perform rating in a research note on Friday, July 22nd. Barclays PLC lowered shares of Joy Global from an overweight rating to an equal weight rating in a research note on Thursday, July 21st. Finally, Axiom Securities reaffirmed a sell rating on shares of Joy Global in a research note on Tuesday, August 30th. Three research analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and three have given a buy rating to the company. The stock presently has an average rating of Hold and a consensus price target of $18.73.
Joy Global (NYSE:JOY) traded up 0.25% during midday trading on Tuesday, hitting $27.88. 363,868 shares of the stock traded hands. The company’s 50-day moving average is $27.61 and its 200 day moving average is $23.19. Joy Global has a 12-month low of $8.35 and a 12-month high of $28.55. The firm’s market cap is $2.74 billion.
Joy Global (NYSE:JOY) last announced its quarterly earnings data on Thursday, September 1st. The company reported $0.10 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.12 by $0.02. Joy Global had a negative net margin of 52.93% and a positive return on equity of 2.76%. The firm earned $587 million during the quarter. During the same period in the prior year, the company earned $0.59 earnings per share. The company’s revenue for the quarter was down 26.0% compared to the same quarter last year. On average, analysts anticipate that Joy Global will post $0.14 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Monday, October 3rd. Stockholders of record on Monday, September 19th were given a dividend of $0.01 per share. The ex-dividend date of this dividend was Thursday, September 15th. This represents a $0.04 dividend on an annualized basis and a dividend yield of 0.14%. Joy Global’s dividend payout ratio (DPR) is presently -0.29%.
Institutional investors have recently made changes to their positions in the company. First New York Securities LLC NY acquired a new position in shares of Joy Global during the third quarter worth about $153,000. LS Investment Advisors LLC raised its position in shares of Joy Global by 71.9% in the second quarter. LS Investment Advisors LLC now owns 6,053 shares of the company’s stock worth $128,000 after buying an additional 2,532 shares during the period. OLD Mutual Customised Solutions Proprietary Ltd. raised its position in shares of Joy Global by 1,233.3% in the second quarter. OLD Mutual Customised Solutions Proprietary Ltd. now owns 8,000 shares of the company’s stock worth $169,000 after buying an additional 7,400 shares during the period. First Mercantile Trust Co. acquired a new position in shares of Joy Global during the second quarter worth about $180,000. Finally, Acrospire Investment Management LLC raised its position in shares of Joy Global by 368.4% in the second quarter. Acrospire Investment Management LLC now owns 8,900 shares of the company’s stock worth $188,000 after buying an additional 7,000 shares during the period.
Joy Global Company Profile
Joy Global Inc is a manufacturer and servicer of mining equipment for the extraction of metals and minerals. The Company manufactures and markets original equipment and parts, and performs services for both underground and surface mining, as well as certain industrial applications. Its equipment is used in mining regions to mine coal, copper, iron ore, oil sands, gold, and other minerals and ores.
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