Terex Corporation (TEX) Clearly Signals Buy-Into the Stock: Don’t ignore the signals

Terex Corporation (NYSE: TEX) stock fell -1.24% on Tuesday to $47.97 against a previous-day closing price of $48.57. With 0.6 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.07 million shares. During the session, the Farm & Heavy Construction Machinery company that operates in wider Industrials sector, reached to the highest price of $49.38 whereas the lowest price it dropped to was $47.65. The 52-week range on TEX shows that it touched its highest point at $60.85 and its lowest point at $26.64 during that stretch. It currently has a 1-year price target of $58.71. With its current market cap of 3.14 billion, TEX has annualized dividend of $0.60 while the current yield stands at 1.25%. Beta for the stock currently stands at 1.61.

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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 TEX was up-trending over the past week, with a rise of 4.28%, but this was up by 3.50% over a month. Three-month performance dropped to -13.96% while six-month performance rose 7.34%. The stock gained 51.37% in the past year, while it has gained 12.29% so far this year. A look at the trailing 12-month EPS for TEX yields 5.20 with Next year EPS estimates of 6.05. For the next quarter, that number is 1.67. This implies an EPS growth rate of 41.00% for this year and 0.32% for next year. EPS is expected to grow by 9.96% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 30.00%.

Float and Shares Shorts:

At present, 67.70 million TEX shares are outstanding with a float of 65.25 million shares on hand for trading. On Apr 27, 2023, short shares totaled 4.3 million, which was 6.34% higher than short shares on Mar 30, 2023. In addition to Mr. John L. Garrison Jr. as the firm’s Chairman, Pres & CEO, Ms. Julie A. Beck CPA, CPA serves as its Sr. VP & CFO.

Institutional Ownership:

Other institutions hold 56.42% of TEX, in contrast to 39.09% held by mutual funds. Shares owned by individuals account for 17.63%. As the largest shareholder in TEX with 11.18% of the stake, The Vanguard Group, Inc. holds 7,545,940 shares worth 7,545,940. A second-largest stockholder of TEX, BlackRock Fund Advisors, holds 7,530,335 shares, controlling over 11.16% of the firm’s shares. Dimensional Fund Advisors LP is the third largest shareholder in TEX, holding 3,041,702 shares or 4.51% stake. With a 3.12% stake in TEX, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 2,106,351 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.94% of TEX stock, is the second-largest Mutual Fund holder. It holds 1,982,175 shares valued at 88.39 million. Vanguard Selected Value Fund holds 2.77% of the stake in TEX, owning 1,868,137 shares worth 83.3 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 Mar 30, 2023, TEX reported revenue of $1.08B and operating income of $103.90M. The EBITDA in the recently reported quarter was $101.00M and diluted EPS was $1.07.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TEX since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With TEX analysts setting a high price target of $72.00 and a low target of $50.00, the average target price over the next 12 months is $58.33. Based on these targets, TEX could surge 50.09% to reach the target high and rise by 4.23% to reach the target low. Reaching the average price target will result in a growth of 21.6% 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.

Summary of Insider Activity:

Insiders traded TEX stock several times over the past three months with 21 Buys and 37 Sells. In these transactions, 227,932 shares were bought while 597,122 shares were sold. The number of buy transactions has increased to 31 while that of sell transactions has risen to 59 over the past year. The total number of shares bought during that period was 291,953 while 853,113 shares were sold.

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