Emerson Electric Co. (NYSE: EMR) stock fell -1.29% on Friday to $75.53 against a previous-day closing price of $76.52. With 2.45 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.68 million shares. During the session, the Specialty Industrial Machinery company that operates in wider Industrials sector, reached to the highest price of $76.98 whereas the lowest price it dropped to was $75.50. The 52-week range on EMR shows that it touched its highest point at $100.47 and its lowest point at $76.16 during that stretch. It currently has a 1-year price target of $102.36. With its current market cap of 45.98 billion, EMR has annualized dividend of $2.06 while the current yield stands at 2.73%. Beta for the stock currently stands at 1.42.
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 EMR was down-trending over the past week, with a drop of -6.20%, but this was down by -12.91% over a month. Three-month performance dropped to -2.91% while six-month performance fell -22.37%. The stock lost -20.91% in the past year, while it has lost -18.76% so far this year. A look at the trailing 12-month EPS for EMR yields 5.29 with Next year EPS estimates of 5.50. For the next quarter, that number is 1.40. This implies an EPS growth rate of 18.10% for this year and 7.55% for next year. EPS is expected to grow by 11.11% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 9.30%.
Float and Shares Shorts:
At present, 592.80 million EMR shares are outstanding with a float of 586.85 million shares on hand for trading. On Jul 14, 2022, short shares totaled 4.58 million, which was 0.77% higher than short shares on Jun 14, 2022. In addition to Mr. Surendralal Lanca Karsanbhai as the firm’s Pres, CEO & Director, Mr. Frank J. Dellaquila serves as its Sr. EVP & CFO.
Through their ownership of 76.17% of EMR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 40.70% of EMR, in contrast to 36.11% held by mutual funds. Shares owned by individuals account for 1.57%. As the largest shareholder in EMR with 8.81% of the stake, The Vanguard Group, Inc. holds 52,066,789 shares worth 52,066,789. A second-largest stockholder of EMR, BlackRock Fund Advisors, holds 26,546,314 shares, controlling over 4.49% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in EMR, holding 25,365,635 shares or 4.29% stake. With a 2.97% stake in EMR, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 17,586,233 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.24% of EMR stock, is the second-largest Mutual Fund holder. It holds 13,257,582 shares valued at 1.08 billion. Fidelity 500 Index Fund holds 1.08% of the stake in EMR, owning 6,378,003 shares worth 521.34 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for EMR since 27 analysts follow the stock currently. There are 14 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 12 believe that the stock is worth HOLDING, 1 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 EMR analysts setting a high price target of $128.00 and a low target of $79.00, the average target price over the next 12 months is $101.74. Based on these targets, EMR could surge 69.47% to reach the target high and rise by 4.59% to reach the target low. Reaching the average price target will result in a growth of 34.7% 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. EMR will report FY 2022 earnings on 11/08/2022. Analysts have provided yearly estimates in a range of $5.23 being high and $5.05 being low. For EMR, this leads to a yearly average estimate of $5.11. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Emerson Electric Co. surprised analysts by $0.09 when it reported $1.38 EPS against a consensus estimate of $1.29. The surprise factor in the prior quarter was $0.11. Based on analyst estimates, the high estimate for the next quarter is $1.51 and the low estimate is $1.33. The average estimate for the next quarter is thus $1.40.
Summary of Insider Activity:
Insiders traded EMR stock several times over the past three months with 1 Buys and 2 Sells. In these transactions, 8,000 shares were bought while 4,657 shares were sold. The number of buy transactions has increased to 25 while that of sell transactions has risen to 18 over the past year. The total number of shares bought during that period was 207,752 while 57,110 shares were sold.