Enersys (ENS) Upgraded to “Hold” by Zacks Investment Research
Zacks Investment Research upgraded shares of Enersys (NYSE:ENS) from a sell rating to a hold rating in a report published on Wednesday morning.
According to Zacks, “EnerSys’ second-quarter fiscal 2018 adjusted earnings beat the Zacks Consensus Estimate by a penny, but declined 8.7% from the year-ago tally. Despite healthy revenue growth, the company’s earnings were hurt by a steep rise in commodity costs, particularly lead. To combat the lead price rise, EnerSys has already initiated price increases but it’s taking longer than expected to fully offset the rising commodity costs. Also, the company’s shares have yielded a sharp negative return over the past six months, much worse than the industry. Despite these negatives, EnerSys’ dominant position in the lead-acid battery market, diligent cost reduction efforts and financial health add to its strength. EnerSys is in the midst of a transformation, wherein it has been undertaking multiple long-term investments to boost growth. However, these efforts are impacting the company’s gross margins adversely. “
A number of other brokerages have also recently weighed in on ENS. Sidoti raised Enersys from a neutral rating to a buy rating and set a $83.00 price objective on the stock in a report on Thursday, August 17th. Oppenheimer Holdings, Inc. reissued a buy rating and set a $82.00 price objective (down from $92.00) on shares of Enersys in a report on Wednesday, August 9th. BidaskClub cut Enersys from a sell rating to a strong sell rating in a report on Friday, August 18th. Finally, ValuEngine cut Enersys from a buy rating to a hold rating in a report on Saturday, August 26th. One analyst has rated the stock with a sell rating, two have given a hold rating and two have assigned a buy rating to the company’s stock. The company currently has an average rating of Hold and a consensus price target of $80.00.
Enersys (NYSE ENS) opened at $67.14 on Wednesday. The firm has a market capitalization of $2,828.27, a PE ratio of 14.50, a P/E/G ratio of 2.45 and a beta of 1.70. The company has a current ratio of 3.43, a quick ratio of 2.49 and a debt-to-equity ratio of 0.64. Enersys has a 1-year low of $61.33 and a 1-year high of $84.74.
Enersys (NYSE:ENS) last announced its quarterly earnings data on Wednesday, November 8th. The industrial products company reported $1.05 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.04 by $0.01. The company had revenue of $617.30 million for the quarter, compared to analysts’ expectations of $603.54 million. Enersys had a return on equity of 18.17% and a net margin of 6.64%. Enersys’s revenue for the quarter was up 7.2% compared to the same quarter last year. During the same period last year, the firm posted $1.15 EPS. research analysts anticipate that Enersys will post 4.58 earnings per share for the current year.
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The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 29th. Investors of record on Friday, December 15th will be issued a dividend of $0.175 per share. The ex-dividend date is Thursday, December 14th. This represents a $0.70 dividend on an annualized basis and a dividend yield of 1.04%. Enersys’s dividend payout ratio is 19.07%.
Enersys declared that its Board of Directors has approved a share buyback program on Wednesday, August 9th that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the industrial products company to purchase up to 3.2% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board of directors believes its shares are undervalued.
In other Enersys news, insider Todd M. Sechrist sold 7,500 shares of Enersys stock in a transaction that occurred on Monday, November 13th. The stock was sold at an average price of $66.50, for a total value of $498,750.00. Following the transaction, the insider now directly owns 61,182 shares of the company’s stock, valued at approximately $4,068,603. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 1.40% of the stock is owned by insiders.
A number of institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. increased its stake in Enersys by 2.6% in the 2nd quarter. Vanguard Group Inc. now owns 3,808,221 shares of the industrial products company’s stock worth $275,907,000 after purchasing an additional 97,319 shares during the period. Boston Partners increased its stake in Enersys by 1.6% in the 3rd quarter. Boston Partners now owns 2,718,205 shares of the industrial products company’s stock worth $188,019,000 after purchasing an additional 42,106 shares during the period. Janus Henderson Group PLC increased its stake in Enersys by 8.3% in the 3rd quarter. Janus Henderson Group PLC now owns 1,738,173 shares of the industrial products company’s stock worth $120,229,000 after purchasing an additional 133,541 shares during the period. State Street Corp increased its stake in Enersys by 2.4% in the 2nd quarter. State Street Corp now owns 1,467,084 shares of the industrial products company’s stock worth $106,289,000 after purchasing an additional 34,872 shares during the period. Finally, Dimensional Fund Advisors LP increased its stake in Enersys by 0.9% in the 3rd quarter. Dimensional Fund Advisors LP now owns 1,442,133 shares of the industrial products company’s stock worth $99,753,000 after purchasing an additional 12,680 shares during the period. 93.07% of the stock is currently owned by institutional investors and hedge funds.
EnerSys is a manufacturer, marketer and distributor of industrial batteries. The Company manufactures, markets and distributes related products, such as chargers, power equipment, outdoor cabinet enclosures and battery accessories, and provides related after-market and customer-support services for industrial batteries.
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