Hill-Rom (HRC) Given “Buy” Rating at Needham & Company LLC

Needham & Company LLC reissued their buy rating on shares of Hill-Rom (NYSE:HRC) in a report issued on Tuesday morning. The brokerage currently has a $105.00 target price on the medical technology company’s stock, up from their prior target price of $90.00.

“HRC preannounced above-consensus F1Q18 revenue and EPS. Management also provided an update on tax reform and expects its tax rate to fall by ~500 bps to ~24%. We have raised our EPS estimates to reflect the positive preannouncement and tax rate guidance. HRC shares remain at a discount to peers (2018E P/E 18.3x which is a 22% discount to its small/mid-cap value peers’ median 2018E P/E of 23.5x) and we reiterate our Buy rating.”,” the firm’s analyst commented.

A number of other brokerages also recently weighed in on HRC. Barclays reissued a buy rating and issued a $100.00 price target on shares of Hill-Rom in a report on Wednesday, January 10th. Zacks Investment Research downgraded shares of Hill-Rom from a buy rating to a hold rating in a report on Tuesday, January 9th. KeyCorp reaffirmed a buy rating and set a $94.00 price objective on shares of Hill-Rom in a report on Thursday, December 21st. Raymond James Financial raised shares of Hill-Rom from a market perform rating to an outperform rating and set a $94.00 price objective for the company in a report on Wednesday, January 3rd. Finally, Morgan Stanley downgraded shares of Hill-Rom from an overweight rating to an equal weight rating in a report on Tuesday, January 2nd. They noted that the move was a valuation call. Six investment analysts have rated the stock with a hold rating and five have given a buy rating to the stock. The company currently has a consensus rating of Hold and a consensus target price of $94.88.

Shares of Hill-Rom (HRC) traded up $1.92 during trading on Tuesday, reaching $88.11. 633,031 shares of the company’s stock were exchanged, compared to its average volume of 524,820. The company has a current ratio of 1.77, a quick ratio of 1.34 and a debt-to-equity ratio of 1.55. Hill-Rom has a 12-month low of $57.18 and a 12-month high of $88.91. The company has a market cap of $5,790.00, a P/E ratio of 44.28, a PEG ratio of 1.53 and a beta of 1.19.

Hill-Rom (NYSE:HRC) last issued its quarterly earnings results on Friday, November 3rd. The medical technology company reported $1.32 earnings per share for the quarter, beating analysts’ consensus estimates of $1.27 by $0.05. Hill-Rom had a net margin of 4.87% and a return on equity of 20.27%. The firm had revenue of $738.30 million during the quarter, compared to the consensus estimate of $731.10 million. During the same period in the prior year, the firm earned $1.18 EPS. The business’s revenue was up 4.6% on a year-over-year basis. analysts forecast that Hill-Rom will post 4.37 earnings per share for the current year.

The firm also recently disclosed a quarterly dividend, which was paid on Friday, December 29th. Stockholders of record on Friday, December 15th were issued a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 0.82%. The ex-dividend date was Thursday, December 14th. Hill-Rom’s payout ratio is 36.18%.

In related news, CEO John J. Greisch sold 125,241 shares of the stock in a transaction dated Friday, December 15th. The shares were sold at an average price of $82.59, for a total transaction of $10,343,654.19. Following the completion of the sale, the chief executive officer now owns 280,851 shares in the company, valued at approximately $23,195,484.09. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Paul Sherwood Johnson sold 1,000 shares of the stock in a transaction dated Wednesday, December 13th. The stock was sold at an average price of $82.99, for a total transaction of $82,990.00. Following the sale, the senior vice president now owns 1,066 shares of the company’s stock, valued at approximately $88,467.34. The disclosure for this sale can be found here. Insiders have sold a total of 226,241 shares of company stock valued at $18,708,644 over the last ninety days. 2.20% of the stock is owned by insiders.

Several institutional investors have recently made changes to their positions in HRC. Private Advisor Group LLC acquired a new stake in shares of Hill-Rom during the 2nd quarter worth about $343,000. Wells Fargo & Company MN increased its position in Hill-Rom by 298.4% in the 2nd quarter. Wells Fargo & Company MN now owns 284,850 shares of the medical technology company’s stock valued at $22,677,000 after acquiring an additional 213,351 shares in the last quarter. Alliancebernstein L.P. increased its position in Hill-Rom by 1.3% in the 2nd quarter. Alliancebernstein L.P. now owns 39,944 shares of the medical technology company’s stock valued at $3,180,000 after acquiring an additional 520 shares in the last quarter. Seven Eight Capital LP acquired a new stake in Hill-Rom in the 2nd quarter valued at about $127,000. Finally, Teachers Advisors LLC increased its position in Hill-Rom by 5.2% in the 2nd quarter. Teachers Advisors LLC now owns 380,439 shares of the medical technology company’s stock valued at $30,287,000 after acquiring an additional 18,922 shares in the last quarter. Institutional investors and hedge funds own 81.92% of the company’s stock.

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Hill-Rom Company Profile

Hill-Rom Holdings, Inc is a global medical technology company. The Company operates through four segments: North America Patient Support Systems, International Patient Support Systems, Front Line Care and Surgical Solutions. The Company’s products and services include Patient Support Systems, Front Line Care and Surgical Solutions.

Analyst Recommendations for Hill-Rom (NYSE:HRC)

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