Does Fortive Corporation (FTV) offer a good opportunity for investors?

Fortive Corporation (NYSE: FTV) stock jumped 0.47% on Friday to $65.59 against a previous-day closing price of $65.28. With 1.69 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.4 million shares. During the session, the Scientific & Technical Instruments company that operates in wider Technology sector, reached to the highest price of $66.11 whereas the lowest price it dropped to was $65.28. The 52-week range on FTV shows that it touched its highest point at $79.87 and its lowest point at $52.47 during that stretch. It currently has a 1-year price target of $72.94. With its current market cap of 21.71 billion, FTV has annualized dividend of $0.28 while the current yield stands at 0.43%. Beta for the stock currently stands at 1.15.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of FTV was up-trending over the past week, with a rise of 4.99%, but this was up by 19.08% over a month. Three-month performance surged to 4.59% while six-month performance fell -8.42%. The stock lost -10.88% in the past year, while it has lost -14.03% so far this year. A look at the trailing 12-month EPS for FTV yields 1.81 with Next year EPS estimates of 3.38. For the next quarter, that number is 0.76. This implies an EPS growth rate of -57.30% for this year and 9.49% for next year. EPS is expected to grow by 10.20% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -5.00%.

Float and Shares Shorts:

At present, 357.40 million FTV shares are outstanding with a float of 356.10 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.01 million, which was 0.85% higher than short shares on Jun 14, 2022. In addition to Mr. James A. Lico as the firm’s Pres, CEO & Director, Mr. Charles E. McLaughlin serves as its Sr. VP & CFO.

Institutional Ownership:

Through their ownership of 109.63% of FTV’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 99.35% of FTV, in contrast to 58.75% held by mutual funds. Shares owned by individuals account for 40.31%. As the largest shareholder in FTV with 11.06% of the stake, T. Rowe Price Associates, Inc. holds 39,651,041 shares worth 39,651,041. A second-largest stockholder of FTV, The Vanguard Group, Inc., holds 36,567,233 shares, controlling over 10.20% of the firm’s shares. Wellington Management Co. LLP is the third largest shareholder in FTV, holding 22,204,547 shares or 6.20% stake. With a 5.07% stake in FTV, the T Rowe Price Capital Appreciation is the largest stakeholder. A total of 18,155,390 shares are owned by the mutual fund manager. The Vanguard Wellington Fund, which owns about 3.25% of FTV stock, is the second-largest Mutual Fund holder. It holds 11,663,565 shares valued at 634.26 million. Vanguard Total Stock Market Index holds 2.95% of the stake in FTV, owning 10,570,233 shares worth 574.81 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 30, 2022, FTV reported revenue of $1.46B and operating income of $248.50M. Over the past year, revenue came in at $5.52B while operating income stood at $848.50M. It generated $173.00M net income for the quarter, which came to $655.40M over the last twelve months. The EBITDA in the recently reported quarter was $361.60M and diluted EPS was $0.45. EBITDA for the full year was $1.29B.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for FTV since 21 analysts follow the stock currently. There are 10 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 4 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With FTV analysts setting a high price target of $87.00 and a low target of $60.00, the average target price over the next 12 months is $73.06. Based on these targets, FTV could surge 32.64% to reach the target high and fall by -8.52% to reach the target low. Reaching the average price target will result in a growth of 11.39% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. FTV will report FY 2022 earnings on 02/09/2023. Analysts have provided yearly estimates in a range of $3.13 being high and $3.04 being low. For FTV, this leads to a yearly average estimate of $3.10. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Fortive Corporation surprised analysts by $0.06 when it reported $0.78 EPS against a consensus estimate of $0.72. The surprise factor in the prior quarter was $0.02. Based on analyst estimates, the high estimate for the next quarter is $0.79 and the low estimate is $0.73. The average estimate for the next quarter is thus $0.76.

Summary of Insider Activity:

Insiders traded FTV stock several times over the past three months with 12 Buys and 2 Sells. In these transactions, 24,980 shares were bought while 596 shares were sold. The number of buy transactions has increased to 50 while that of sell transactions has risen to 61 over the past year. The total number of shares bought during that period was 484,694 while 247,865 shares were sold.

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