Rockwell Automation Inc. (NYSE: ROK) stock jumped 1.19% on Thursday to $273.43 against a previous-day closing price of $270.22. With 0.71 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.72 million shares. During the session, the Specialty Industrial Machinery company that operates in wider Industrials sector, reached to the highest price of $275.49 whereas the lowest price it dropped to was $269.81. The 52-week range on ROK shows that it touched its highest point at $309.36 and its lowest point at $190.08 during that stretch. It currently has a 1-year price target of $294.85. With its current market cap of 31.39 billion, ROK has annualized dividend of $4.72 while the current yield stands at 1.73%. Beta for the stock currently stands at 1.42.
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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 ROK was down-trending over the past week, with a drop of -2.73%, but this was up by 1.03% over a month. Three-month performance dropped to -5.84% while six-month performance rose 2.42%. The stock gained 37.97% in the past year, while it has gained 6.16% so far this year. A look at the trailing 12-month EPS for ROK yields 11.36 with Next year EPS estimates of 13.05. For the next quarter, that number is 3.18. This implies an EPS growth rate of -31.20% for this year and 8.57% for next year. EPS is expected to grow by 15.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 4.60%.
Float and Shares Shorts:
At present, 114.80 million ROK shares are outstanding with a float of 114.66 million shares on hand for trading. On May 14, 2023, short shares totaled 3.02 million, which was 2.63% higher than short shares on Apr 13, 2023. In addition to Mr. Blake D. Moret as the firm’s Chairman & CEO, Mr. Nicholas C. Gangestad serves as its Sr. VP & CFO.
Through their ownership of 82.96% of ROK’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 49.62% of ROK, in contrast to 34.39% held by mutual funds. Shares owned by individuals account for 1.29%. As the largest shareholder in ROK with 11.44% of the stake, The Vanguard Group, Inc. holds 13,134,613 shares worth 13,134,613. A second-largest stockholder of ROK, BlackRock Fund Advisors, holds 5,580,289 shares, controlling over 4.86% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in ROK, holding 5,100,281 shares or 4.44% stake. With a 3.11% stake in ROK, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 3,569,398 shares are owned by the mutual fund manager. The Alecta Pension, which owns about 2.69% of ROK stock, is the second-largest Mutual Fund holder. It holds 3,088,228 shares valued at 875.23 million. Vanguard 500 Index Fund holds 2.35% of the stake in ROK, owning 2,693,858 shares worth 763.47 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, ROK reported revenue of $1.97B and operating income of $360.40M. The EBITDA in the recently reported quarter was $437.00M and diluted EPS was $2.55.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ROK 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 ROK analysts setting a high price target of $336.00 and a low target of $210.00, the average target price over the next 12 months is $291.18. Based on these targets, ROK could surge 22.88% to reach the target high and fall by -23.2% to reach the target low. Reaching the average price target will result in a growth of 6.49% 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 ROK stock several times over the past three months with 3 Buys and 4 Sells. In these transactions, 5,608 shares were bought while 2,631 shares were sold. The number of buy transactions has increased to 50 while that of sell transactions has risen to 79 over the past year. The total number of shares bought during that period was 66,048 while 42,068 shares were sold.