Healthy Upside Potential: Ingersoll Rand Inc. (IR)

Ingersoll Rand Inc. (NYSE: IR) stock fell -2.20% on Friday to $46.15 against a previous-day closing price of $47.19. With 4.09 million shares changed hands, the volume of the stock remained heavier than its average volume of 3.01 million shares. During the session, the Specialty Industrial Machinery company that operates in wider Industrials sector, reached to the highest price of $48.15 whereas the lowest price it dropped to was $46.14. The 52-week range on IR shows that it touched its highest point at $62.64 and its lowest point at $39.28 during that stretch. It currently has a 1-year price target of $54.92. With its current market cap of 19.44 billion, IR has annualized dividend of $0.08 while the current yield stands at 0.17%. Beta for the stock currently stands at 1.47.

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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 IR was down-trending over the past week, with a drop of -6.96%, but this was down by -6.94% over a month. Three-month performance surged to 10.51% while six-month performance fell -9.10%. The stock lost -12.79% in the past year, while it has lost -25.41% so far this year. A look at the trailing 12-month EPS for IR yields 1.29 with Next year EPS estimates of 2.56. For the next quarter, that number is 0.60. This implies an EPS growth rate of 920.50% for this year and 11.38% for next year. EPS is expected to grow by 10.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 53.10%.

Float and Shares Shorts:

At present, 404.50 million IR shares are outstanding with a float of 402.10 million shares on hand for trading. On Jul 14, 2022, short shares totaled 8.89 million, which was 2.19% higher than short shares on Jun 14, 2022. In addition to Mr. Vicente Reynal as the firm’s Chairman, CEO & Pres, Mr. Vikram U. Kini serves as its Sr. VP & CFO.

Institutional Ownership:

Through their ownership of 111.63% of IR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 64.72% of IR, in contrast to 38.53% held by mutual funds. Shares owned by individuals account for 11.37%. As the largest shareholder in IR with 15.44% of the stake, T. Rowe Price Investment Manageme holds 62,229,555 shares worth 62,229,555. A second-largest stockholder of IR, The Vanguard Group, Inc., holds 43,057,563 shares, controlling over 10.68% of the firm’s shares. T. Rowe Price Associates, Inc. is the third largest shareholder in IR, holding 21,612,256 shares or 5.36% stake. With a 3.98% stake in IR, the T Rowe Price Capital Appreciation is the largest stakeholder. A total of 16,062,525 shares are owned by the mutual fund manager. The T Rowe Price Mid Cap Growth Fund, which owns about 3.41% of IR stock, is the second-largest Mutual Fund holder. It holds 13,735,700 shares valued at 650.66 million. Vanguard Total Stock Market Index holds 2.98% of the stake in IR, owning 12,015,436 shares worth 569.17 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for IR since 17 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 3 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 IR analysts setting a high price target of $78.00 and a low target of $46.00, the average target price over the next 12 months is $55.87. Based on these targets, IR could surge 69.01% to reach the target high and fall by -0.33% to reach the target low. Reaching the average price target will result in a growth of 21.06% 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. IR will report FY 2022 earnings on 02/22/2023. Analysts have provided yearly estimates in a range of $2.37 being high and $2.25 being low. For IR, this leads to a yearly average estimate of $2.30. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Ingersoll Rand Inc. surprised analysts by $0.02 when it reported $0.54 EPS against a consensus estimate of $0.52. The surprise factor in the prior quarter was $0.04. Based on analyst estimates, the high estimate for the next quarter is $0.69 and the low estimate is $0.57. The average estimate for the next quarter is thus $0.60.

Summary of Insider Activity:

Insiders traded IR stock several times over the past three months with 3 Buys and 5 Sells. In these transactions, 4,438 shares were bought while 24,009 shares were sold. The number of buy transactions has increased to 57 while that of sell transactions has risen to 55 over the past year. The total number of shares bought during that period was 227,852 while 191,245 shares were sold.

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