Zacks Investment Research cut shares of ITT (NYSE:ITT) from a buy rating to a hold rating in a research note released on Friday.
According to Zacks, “ITT reported better-than-expected third-quarter 2018 results. ITT believes strength in its chemical and general industrial businesses, sturdier demand for connectors and growth in automotive friction orders will likely drive its revenues in the quarters ahead. Also, commercial excellence, increased productivity, lower tax expenses and stronger sales volumes are expected to boost its near-term profitability. However, over the past month the stock has underperformed and looks overvalued compared to the industry. Material cost inflation and higher incentive expenses might continue to escalate costs and hurt the company’s near-term margins. Moreover, adverse foreign exchange impact also remains a cause of concern for the stock. Over the past 30 days, Zacks Consensus Estimate for the company’s earnings has remained unchanged for both 2018 and 2019.”
Several other equities research analysts have also issued reports on the company. Oppenheimer set a $68.00 target price on ITT and gave the company a buy rating in a research report on Tuesday, November 27th. Robert W. Baird reaffirmed a buy rating and set a $65.00 target price on shares of ITT in a research report on Wednesday, November 7th. ValuEngine lowered ITT from a buy rating to a hold rating in a research report on Tuesday, October 16th. Gordon Haskett assumed coverage on ITT in a research report on Friday, October 12th. They set a buy rating for the company. Finally, UBS Group raised their target price on ITT from $57.00 to $60.00 and gave the company a sell rating in a research report on Thursday, August 30th. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and seven have given a buy rating to the company. The company presently has an average rating of Buy and a consensus price target of $66.25.
ITT (NYSE:ITT) last released its quarterly earnings results on Friday, November 2nd. The conglomerate reported $0.82 EPS for the quarter, beating analysts’ consensus estimates of $0.79 by $0.03. The business had revenue of $680.60 million during the quarter, compared to analyst estimates of $677.36 million. ITT had a return on equity of 16.10% and a net margin of 7.80%. ITT’s quarterly revenue was up 5.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.66 EPS. As a group, research analysts anticipate that ITT will post 3.15 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Friday, December 28th. Stockholders of record on Friday, December 7th will be given a dividend of $0.134 per share. This represents a $0.54 annualized dividend and a dividend yield of 1.06%. The ex-dividend date of this dividend is Thursday, December 6th. ITT’s dividend payout ratio is presently 20.85%.
Several institutional investors have recently made changes to their positions in ITT. FMR LLC increased its holdings in ITT by 17.4% in the 2nd quarter. FMR LLC now owns 6,671,943 shares of the conglomerate’s stock worth $348,743,000 after acquiring an additional 987,111 shares during the last quarter. Boston Partners purchased a new stake in ITT in the 2nd quarter worth about $40,647,000. Eaton Vance Management increased its holdings in ITT by 41.4% in the 3rd quarter. Eaton Vance Management now owns 1,097,507 shares of the conglomerate’s stock worth $67,233,000 after acquiring an additional 321,123 shares during the last quarter. Canada Pension Plan Investment Board increased its holdings in ITT by 114.7% in the 2nd quarter. Canada Pension Plan Investment Board now owns 583,496 shares of the conglomerate’s stock worth $30,499,000 after acquiring an additional 311,700 shares during the last quarter. Finally, OppenheimerFunds Inc. increased its holdings in ITT by 94.6% in the 2nd quarter. OppenheimerFunds Inc. now owns 516,914 shares of the conglomerate’s stock worth $27,018,000 after acquiring an additional 251,322 shares during the last quarter. 91.17% of the stock is owned by hedge funds and other institutional investors.
ITT Company Profile
ITT Inc manufactures and sells engineered critical components and customized technology solutions for the energy, transportation, and industrial markets worldwide. The company operates in three segments: Industrial Process, Motion Technologies, and Connect & Control Technologies. The Industrial Process segment designs and manufactures industrial pumps, valves, and plant optimization systems; and centrifugal pumps, vertical centrifugal pumps, twin screw and positive displacement pumps, and water systems, as well as aftermarket solutions, such as repairs and upgrades services.
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