Zacks Investment Research Downgrades Ingersoll-Rand PLC (IR) to Hold
Ingersoll-Rand PLC (NYSE:IR) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Friday.
According to Zacks, “Ingersoll reported strong third-quarter 2016 results with healthy year-over-year increase in both earnings and revenues that exceeded the respective Zacks Consensus Estimate. Ingersoll is focusing on improving the efficiencies and capabilities of products and services within its core operations after the divesture of the commercial and residential security businesses. A disciplined capital allocation policy along with a strong and flexible balance sheet position remain tailwinds. Ingersoll also raised the guidance for 2016 on favorable growth dynamics. However, continued portfolio repositioning efforts to focus on high-barrier markets involve high upfront costs and could lead to earnings dilution in the near term. Ingersoll is also likely to be stifled by the renegotiated deals and restrictions imposed on trade with other European Union members due to the Brexit referendum, lowering its productivity and reducing margins.”
A number of other research firms have also recently issued reports on IR. Stifel Nicolaus dropped their price objective on Ingersoll-Rand PLC from $77.00 to $75.00 and set a “buy” rating for the company in a report on Thursday, July 28th. Jefferies Group restated a “buy” rating on shares of Ingersoll-Rand PLC in a report on Wednesday, August 3rd. KeyCorp restated a “hold” rating on shares of Ingersoll-Rand PLC in a report on Monday, October 10th. Finally, Royal Bank Of Canada boosted their price objective on Ingersoll-Rand PLC from $74.00 to $76.00 and gave the company a “sector perform” rating in a report on Thursday, October 27th. Eight analysts have rated the stock with a hold rating and ten have issued a buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus target price of $69.12.
Ingersoll-Rand PLC (NYSE:IR) opened at 75.07 on Friday. The company has a market capitalization of $19.39 billion, a P/E ratio of 13.03 and a beta of 1.32. Ingersoll-Rand PLC has a one year low of $47.08 and a one year high of $76.45. The stock’s 50 day moving average price is $67.52 and its 200 day moving average price is $66.35.
Ingersoll-Rand PLC (NYSE:IR) last released its earnings results on Wednesday, October 26th. The company reported $1.41 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.29 by $0.12. The firm had revenue of $3.57 billion for the quarter, compared to the consensus estimate of $3.55 billion. Ingersoll-Rand PLC had a return on equity of 17.70% and a net margin of 11.21%. The company’s revenue for the quarter was up 2.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.21 EPS. Equities analysts anticipate that Ingersoll-Rand PLC will post $4.20 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 30th. Stockholders of record on Friday, December 9th will be issued a $0.40 dividend. The ex-dividend date is Wednesday, December 7th. This is a positive change from Ingersoll-Rand PLC’s previous quarterly dividend of $0.32. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.13%. Ingersoll-Rand PLC’s dividend payout ratio is currently 22.22%.
In other news, Director Richard J. Swift sold 2,100 shares of the stock in a transaction dated Tuesday, September 6th. The stock was sold at an average price of $67.99, for a total value of $142,779.00. Following the transaction, the director now directly owns 66,648 shares of the company’s stock, valued at $4,531,397.52. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Didier P. Teirlinck sold 28,117 shares of the stock in a transaction dated Wednesday, November 2nd. The shares were sold at an average price of $67.51, for a total value of $1,898,178.67. Following the completion of the transaction, the executive vice president now directly owns 135,532 shares in the company, valued at $9,149,765.32. The disclosure for this sale can be found here. 0.65% of the stock is owned by insiders.
Several hedge funds and other institutional investors have recently made changes to their positions in IR. Wellington Management Group LLP increased its stake in shares of Ingersoll-Rand PLC by 38.0% in the first quarter. Wellington Management Group LLP now owns 1,552,665 shares of the company’s stock worth $96,281,000 after buying an additional 427,812 shares during the last quarter. Nuveen Asset Management LLC increased its stake in shares of Ingersoll-Rand PLC by 319.7% in the first quarter. Nuveen Asset Management LLC now owns 75,802 shares of the company’s stock worth $4,700,000 after buying an additional 57,742 shares during the last quarter. Springbok Capital Management LLC bought a new stake in shares of Ingersoll-Rand PLC during the first quarter worth approximately $999,000. Schonfeld Strategic Advisors LLC bought a new stake in shares of Ingersoll-Rand PLC during the first quarter worth approximately $1,260,000. Finally, Quantum Capital Management bought a new stake in shares of Ingersoll-Rand PLC during the first quarter worth approximately $8,153,000. 81.71% of the stock is currently owned by institutional investors and hedge funds.
About Ingersoll-Rand PLC
Ingersoll-Rand Public Limited Company provides products, services and solutions to improve the quality and comfort of air in homes and buildings, transport and protect food and perishables. The Company’s business segments include Climate and Industrial. It is engaged in the design, manufacture, sale and service of a portfolio of industrial and commercial products that include brand names, such as Ingersoll-Rand, Trane, American Standard, ARO and Club Car.
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