Hubbell (NYSE:HUBB) Shares Gap Down – Here’s Why

Shares of Hubbell Inc (NYSE:HUBB) gapped down prior to trading on Tuesday. The stock had previously closed at $459.40, but opened at $430.64. Hubbell shares last traded at $438.2280, with a volume of 261,231 shares changing hands.

Analyst Upgrades and Downgrades

HUBB has been the subject of a number of recent research reports. Mizuho dropped their price objective on shares of Hubbell from $575.00 to $560.00 and set an “outperform” rating for the company in a research note on Thursday, October 15th. Wall Street Zen lowered Hubbell from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. JPMorgan Chase & Co. began coverage on Hubbell in a report on Tuesday, October 20th. They set a “neutral” rating and a $485.00 target price on the stock. Seaport Research Partners reiterated a “buy” rating and set a $580.00 target price on shares of Hubbell in a report on Wednesday, September 30th. Finally, Wells Fargo & Company assumed coverage on Hubbell in a research report on Thursday, September 24th. They set an “equal weight” rating and a $531.00 price target for the company. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, Hubbell presently has a consensus rating of “Moderate Buy” and a consensus target price of $552.67.

Hubbell Stock Performance

The stock has a market cap of $23.27 billion, a price-to-earnings ratio of 26.05, a price-to-earnings-growth ratio of 2.23 and a beta of 0.85. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.61 and a quick ratio of 0.93. The stock’s 50-day moving average is $463.32 and its 200-day moving average is $488.50.

Hubbell (NYSE:HUBB) last issued its quarterly earnings results on Tuesday, October 27th. The industrial products company reported $5.91 earnings per share for the quarter, beating the consensus estimate of $5.75 by $0.16. Hubbell had a return on equity of 27.11% and a net margin of 14.49%. The company had revenue of $1.87 billion during the quarter, compared to the consensus estimate of $1.85 billion. During the same period in the previous year, the firm posted $5.17 EPS. Hubbell’s revenue was up 24.6% on a year-over-year basis. Analysts anticipate that Hubbell Inc will post 20.50 EPS for the current fiscal year.

Hubbell Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Monday, November 30th will be issued a dividend of $1.52 per share. This represents a $6.08 annualized dividend and a dividend yield of 1.4%. This is a positive change from Hubbell’s previous quarterly dividend of $1.42. The ex-dividend date is Monday, November 30th. Hubbell’s payout ratio is 33.63%.

Insider Activity at Hubbell

In related news, VP Jonathan Del Nero sold 547 shares of the company’s stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $518.56, for a total value of $283,652.32. Following the completion of the transaction, the vice president directly owned 2,933 shares in the company, valued at approximately $1,520,936.48. This represents a 15.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.63% of the stock is currently owned by corporate insiders.

Institutional Trading of Hubbell

Hedge funds have recently added to or reduced their stakes in the business. Pinnacle Bancorp Inc. grew its holdings in Hubbell by 165.0% in the 1st quarter. Pinnacle Bancorp Inc. now owns 53 shares of the industrial products company’s stock valued at $26,000 after buying an additional 33 shares during the period. Schuylkill Financial LLC purchased a new position in shares of Hubbell during the 2nd quarter worth about $30,000. Keating Financial Advisory Services Inc. purchased a new position in shares of Hubbell during the 2nd quarter worth about $35,000. Leonteq Securities AG acquired a new stake in shares of Hubbell in the first quarter worth approximately $33,000. Finally, Fiduciary Financial Advisors acquired a new stake in shares of Hubbell in the second quarter worth approximately $37,000. 88.16% of the stock is owned by institutional investors and hedge funds.

About Hubbell

Hubbell Incorporated (NYSE:HUBB) is an electrical products manufacturer that develops and supplies products used in utility, commercial, industrial, and telecommunications applications. Founded in 1888 by Harvey Hubbell, the company has built a portfolio focused on improving the reliability, safety, and efficiency of electrical systems.

Hubbell’s Utility Solutions products support the generation, transmission, distribution, and control of electricity. Its offerings include electrical connectors and fittings, insulators, arresters, transmission and distribution hardware, communications infrastructure products, and equipment used in underground and overhead utility networks.

Its Electrical Solutions business serves commercial and industrial customers with wiring devices, electrical enclosures, grounding and bonding products, cable management systems, lighting-related products, and solutions designed for harsh, hazardous, and demanding operating environments.