The Manitowoc (MTW) Lowered to Strong Sell at Zacks Investment Research
The Manitowoc (NYSE:MTW) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research note issued on Monday.
According to Zacks, “Manitowoc's earnings will be impacted by the imposition of 25% tariff on steel. The company might not be able to raise its prices to counter increased steel prices given the weak demand. Cost pressures pertaining to raw materials and labor are expected to remain headwinds in the near term. Further, the crawler and rough terrain markets continue to be sluggish. The company’s cost reduction and facility consolidation efforts continue to yield savings but are not yet being fully leveraged given current low volumes. Manitowoc is also facing stiff competition from China-based crane manufacturers. In addition, the Middle East remains challenging because of geopolitical uncertainties. Moreover, the company has underperformed the industry over the past year.”
Several other research analysts have also issued reports on the stock. Robert W. Baird lowered shares of The Manitowoc from an “outperform” rating to a “neutral” rating and increased their price target for the stock from $27.95 to $33.00 in a research report on Friday, March 2nd. JPMorgan Chase lowered shares of The Manitowoc from a “neutral” rating to an “underweight” rating and dropped their price objective for the stock from $30.00 to $29.00 in a report on Monday, February 12th. Stifel Nicolaus dropped their price objective on shares of The Manitowoc from $48.00 to $42.00 and set a “buy” rating for the company in a report on Monday, February 12th. Credit Suisse Group raised their price objective on shares of The Manitowoc from $36.00 to $37.00 and gave the stock a “neutral” rating in a report on Monday, February 12th. Finally, Deutsche Bank decreased their price target on shares of The Manitowoc from $44.00 to $36.00 and set a “hold” rating on the stock in a research note on Monday, February 12th. Three research analysts have rated the stock with a sell rating, six have issued a hold rating and six have assigned a buy rating to the company. The stock currently has a consensus rating of “Hold” and a consensus target price of $38.38.
The Manitowoc (NYSE:MTW) last posted its quarterly earnings results on Thursday, February 8th. The industrial products company reported ($0.15) earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.04) by ($0.11). The Manitowoc had a negative return on equity of 1.54% and a net margin of 0.59%. The business had revenue of $481.50 million during the quarter, compared to analyst estimates of $423.27 million. During the same period last year, the company earned ($0.24) EPS. The business’s revenue for the quarter was up 27.3% on a year-over-year basis. research analysts expect that The Manitowoc will post 0.41 EPS for the current year.
In other news, SVP Thomas G. Musial sold 1,376 shares of the stock in a transaction that occurred on Wednesday, February 21st. The shares were sold at an average price of $32.07, for a total transaction of $44,128.32. Following the sale, the senior vice president now directly owns 48,467 shares of the company’s stock, valued at $1,554,336.69. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Thomas G. Musial sold 4,476 shares of the firm’s stock in a transaction that occurred on Tuesday, February 13th. The shares were sold at an average price of $33.84, for a total transaction of $151,467.84. Following the completion of the transaction, the senior vice president now directly owns 54,319 shares in the company, valued at $1,838,154.96. The disclosure for this sale can be found here. Insiders have sold 9,179 shares of company stock worth $288,486 over the last three months. 1.40% of the stock is owned by insiders.
Hedge funds have recently made changes to their positions in the business. SeaCrest Wealth Management LLC bought a new position in The Manitowoc in the fourth quarter valued at approximately $129,000. Jefferies Group LLC bought a new position in The Manitowoc in the fourth quarter valued at approximately $225,000. Allianz Asset Management GmbH bought a new position in The Manitowoc in the fourth quarter valued at approximately $227,000. AMP Capital Investors Ltd bought a new position in The Manitowoc in the fourth quarter valued at approximately $252,000. Finally, Arrowstreet Capital Limited Partnership bought a new position in The Manitowoc in the fourth quarter valued at approximately $448,000. 79.14% of the stock is currently owned by hedge funds and other institutional investors.
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About The Manitowoc
The Manitowoc Company, Inc provides engineered lifting equipment for the construction industry in the Americas, Europe, Africa, the Middle East, and the Asia Pacific. It designs, manufactures, and distributes crawler-mounted lattice-boom cranes under the Manitowoc brand; a line of top-slewing and self-erecting tower cranes under the Potain brand; mobile telescopic cranes under the Grove brand; and a line of hydraulically powered telescopic boom trucks the National Crane brand.
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