ITT Corp. (ITT) Rating Increased to Hold at Zacks Investment Research
ITT Corp. (NYSE:ITT) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Friday.
According to Zacks, “ITT Corp.’s third-quarter 2016 earnings came in line with the Zacks Consensus Estimate, however fell short of the year-ago tally. The bottom-line decline is largely attributable to higher tax rate and foreign currency headwinds. Moreover, tepid sales proved to be a drag. On the positive side, lucrative long-term platform wins, portfolio streamlining initiatives and diligent capital deployment strategies look promising and will likely help it combat macroeconomic challenges. Also, the recent announcement of Axtone acquisition looks promising for the growth of Motion Controls technology. However, factors including lower operating income, dismal sales and higher effective tax rate are proving to be a drag on the company’s financials. Going forward, softness in industrial as well as oil & gas markets will continue to affect client spending adversely, thus restricting the company’s growth to a great extent. “
Other equities analysts have also recently issued reports about the stock. KeyCorp upgraded shares of ITT Corp. from a “sector weight” rating to an “overweight” rating and set a $40.00 price objective for the company in a research report on Monday, November 7th. They noted that the move was a valuation call. Barclays PLC reiterated a “buy” rating on shares of ITT Corp. in a research report on Monday, November 7th. Finally, Oppenheimer Holdings Inc. reiterated a “market perform” rating on shares of ITT Corp. in a research report on Tuesday, August 23rd. Four equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. The stock presently has a consensus rating of “Buy” and a consensus price target of $40.57.
Shares of ITT Corp. (NYSE:ITT) opened at 39.53 on Friday. ITT Corp. has a one year low of $29.15 and a one year high of $40.12. The company has a market cap of $3.49 billion, a price-to-earnings ratio of 18.12 and a beta of 1.38. The company’s 50-day moving average is $35.51 and its 200-day moving average is $34.65.
ITT Corp. (NYSE:ITT) last posted its quarterly earnings data on Friday, November 4th. The company reported $0.58 earnings per share for the quarter, hitting the Zacks’ consensus estimate of $0.58. The company earned $582 million during the quarter, compared to analysts’ expectations of $582.12 million. ITT Corp. had a net margin of 7.93% and a return on equity of 15.41%. The firm’s revenue for the quarter was down 3.4% on a year-over-year basis. During the same period in the prior year, the business posted $0.63 earnings per share. On average, equities analysts predict that ITT Corp. will post $2.27 EPS for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 30th. Investors of record on Friday, December 9th will be issued a $0.124 dividend. This represents a $0.50 dividend on an annualized basis and a dividend yield of 1.25%. The ex-dividend date of this dividend is Wednesday, December 7th. ITT Corp.’s dividend payout ratio is currently 22.94%.
In other ITT Corp. news, VP Thomas M. Scalera sold 9,310 shares of the stock in a transaction dated Thursday, November 10th. The shares were sold at an average price of $38.00, for a total transaction of $353,780.00. Following the completion of the transaction, the vice president now owns 60,807 shares of the company’s stock, valued at $2,310,666. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Aris C. Chicles sold 56,380 shares of the stock in a transaction dated Tuesday, November 15th. The stock was sold at an average price of $38.28, for a total transaction of $2,158,226.40. Following the transaction, the insider now directly owns 72,117 shares of the company’s stock, valued at approximately $2,760,638.76. The disclosure for this sale can be found here. 1.60% of the stock is currently owned by corporate insiders.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. Zurcher Kantonalbank Zurich Cantonalbank raised its position in ITT Corp. by 13.2% in the third quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 2,966 shares of the company’s stock valued at $106,000 after buying an additional 345 shares during the last quarter. Advisor Group Inc. raised its position in ITT Corp. by 40.7% in the third quarter. Advisor Group Inc. now owns 3,852 shares of the company’s stock valued at $138,000 after buying an additional 1,114 shares during the last quarter. Bank of Montreal Can acquired a new position in ITT Corp. during the second quarter valued at approximately $153,000. Quantbot Technologies LP acquired a new position in ITT Corp. during the third quarter valued at approximately $159,000. Finally, Creative Planning raised its position in ITT Corp. by 10.5% in the second quarter. Creative Planning now owns 5,293 shares of the company’s stock valued at $169,000 after buying an additional 501 shares during the last quarter. 86.64% of the stock is owned by institutional investors and hedge funds.
ITT Corp. Company Profile
ITT Corporation (ITT) is a diversified manufacturer of engineered critical components and technology solutions for industrial markets. The Company’s product and service offerings are organized in four segments: Industrial Process, Motion Technologies, Interconnect Solutions and Control Technologies. Industrial Process manufactures engineered fluid process equipment, and is a provider of plant optimization, solutions and aftermarket services and parts.
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