Zacks Investment Research cut shares of Ingersoll-Rand (NYSE:IR) from a buy rating to a hold rating in a research note released on Wednesday.
According to Zacks, “Ingersoll reported solid first-quarter 2018 results. A robust operating platform and an efficient management team will likely drive net asset value and dividend growth in future. With new product developments, investments in IT platform and enhancement of channel services footprint and product management capabilities, Ingersoll is likely to achieve steady improvements in operating profitability. The stock has outperformed the industry in the past three months on an average. However, operating risks from high R&D costs for technology-driven products are expected to weigh on the margins and impair its long-term growth. Its significant international presence exposes it to political and economic disruptions which can directly impact profits. Brexit could further result in higher tariff and non-tariff barriers to trade between the U.K. and the European Union, lowering productivity of the company.”
A number of other analysts have also weighed in on the company. Stifel Nicolaus increased their target price on Ingersoll-Rand from $94.00 to $104.00 and gave the stock a buy rating in a research note on Thursday, April 26th. Citigroup reduced their target price on Ingersoll-Rand from $110.00 to $109.00 and set a buy rating on the stock in a research note on Monday, April 9th. Royal Bank of Canada reiterated a hold rating and issued a $99.00 target price on shares of Ingersoll-Rand in a research note on Tuesday, February 27th. Barclays assumed coverage on Ingersoll-Rand in a research note on Thursday, February 15th. They issued an overweight rating and a $111.00 target price on the stock. Finally, Argus increased their target price on Ingersoll-Rand to $105.00 and gave the stock a buy rating in a research note on Tuesday, February 6th. One research analyst has rated the stock with a sell rating, nine have given a hold rating and eight have assigned a buy rating to the company. The stock has a consensus rating of Hold and an average price target of $104.08.
NYSE:IR opened at $90.26 on Wednesday. Ingersoll-Rand has a fifty-two week low of $79.63 and a fifty-two week high of $97.67. The firm has a market cap of $22.54 billion, a P/E ratio of 19.55, a P/E/G ratio of 1.57 and a beta of 1.35. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.99 and a current ratio of 1.41.
Ingersoll-Rand (NYSE:IR) last released its quarterly earnings results on Wednesday, April 25th. The industrial products company reported $0.70 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.62 by $0.08. Ingersoll-Rand had a return on equity of 17.03% and a net margin of 8.96%. The company had revenue of $3.39 billion for the quarter, compared to analyst estimates of $3.19 billion. During the same quarter in the prior year, the firm posted $0.57 EPS. Ingersoll-Rand’s quarterly revenue was up 12.8% compared to the same quarter last year. sell-side analysts forecast that Ingersoll-Rand will post 5.29 EPS for the current year.
The company also recently declared a quarterly dividend, which will be paid on Friday, June 29th. Stockholders of record on Friday, June 8th will be given a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a dividend yield of 1.99%. The ex-dividend date is Thursday, June 7th. Ingersoll-Rand’s payout ratio is 39.91%.
In other news, insider Paul A. Camuti sold 3,100 shares of the stock in a transaction on Thursday, May 17th. The stock was sold at an average price of $90.00, for a total transaction of $279,000.00. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Paul A. Camuti sold 1,678 shares of the stock in a transaction on Friday, March 2nd. The stock was sold at an average price of $85.15, for a total value of $142,881.70. The disclosure for this sale can be found here. 0.70% of the stock is currently owned by corporate insiders.
Several institutional investors and hedge funds have recently bought and sold shares of IR. Amundi Pioneer Asset Management Inc. boosted its position in Ingersoll-Rand by 356.9% during the fourth quarter. Amundi Pioneer Asset Management Inc. now owns 1,793,292 shares of the industrial products company’s stock valued at $159,944,000 after purchasing an additional 1,400,832 shares in the last quarter. Ceredex Value Advisors LLC bought a new stake in Ingersoll-Rand during the first quarter valued at about $89,309,000. Victory Capital Management Inc. boosted its position in Ingersoll-Rand by 43.7% during the fourth quarter. Victory Capital Management Inc. now owns 2,502,804 shares of the industrial products company’s stock valued at $223,225,000 after purchasing an additional 761,576 shares in the last quarter. BlackRock Inc. boosted its position in Ingersoll-Rand by 3.8% during the first quarter. BlackRock Inc. now owns 17,969,852 shares of the industrial products company’s stock valued at $1,536,604,000 after purchasing an additional 664,322 shares in the last quarter. Finally, Two Sigma Advisers LP boosted its position in Ingersoll-Rand by 93.8% during the fourth quarter. Two Sigma Advisers LP now owns 1,359,677 shares of the industrial products company’s stock valued at $121,270,000 after purchasing an additional 658,213 shares in the last quarter. 79.15% of the stock is currently owned by institutional investors and hedge funds.
Ingersoll-Rand plc designs, manufactures, sells, and services industrial and commercial products. It operates through Climate and Industrial segments. The Climate segment offers building management, bus, rail, and multi-pipe HVAC, control, container and cryogenic, diesel-powered, ductless, geothermal, package heating and cooling, rail and self-powered truck refrigeration, temporary heating and cooling, trailer refrigeration, unitary, and vehicle-powered truck refrigeration systems.
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