Parker-Hannifin (PH) Downgraded to Sell at Zacks Investment Research

Parker-Hannifin (NYSE:PH) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Wednesday.

According to Zacks, “Over the past month, Parker-Hannifin’s shares have underperformed the industry. Ongoing realignment plan might prove beneficial in the long-run but will drag on Parker-Hannifin’s near-term financials. The company expects to incur business realignment expenses of about $50 million and CLARCOR synergy costs of $58 million in fiscal 2018. Also, continued inflation in the prices of core materials like steel, aluminum, castings and nickel might weigh on profitability in the quarters ahead. Moreover, continued sluggishness in key natural resources market remains a cause of concern. The company also looks more leveraged than the industry. Over the past 30 days, Zacks Consensus Estimate for the stock has moved south for fiscal 2019.”

Other equities research analysts have also issued research reports about the stock. Wells Fargo & Co restated a “buy” rating on shares of Parker-Hannifin in a research note on Tuesday, May 29th. Stifel Nicolaus restated a “buy” rating and issued a $200.00 price target (down previously from $232.00) on shares of Parker-Hannifin in a research note on Monday, April 9th. Jefferies Financial Group restated a “hold” rating and issued a $200.00 price target on shares of Parker-Hannifin in a research note on Wednesday, March 7th. Buckingham Research dropped their price target on shares of Parker-Hannifin from $210.00 to $195.00 and set a “hold” rating on the stock in a research note on Friday, April 27th. Finally, Wolfe Research started coverage on shares of Parker-Hannifin in a research note on Wednesday. They issued a “market perform” rating on the stock. Three analysts have rated the stock with a sell rating, seven have issued a hold rating and seven have issued a buy rating to the stock. Parker-Hannifin presently has a consensus rating of “Hold” and a consensus target price of $200.40.

NYSE PH traded up $0.97 during trading hours on Wednesday, reaching $156.80. The company’s stock had a trading volume of 16,018 shares, compared to its average volume of 1,093,497. The company has a quick ratio of 1.09, a current ratio of 1.59 and a debt-to-equity ratio of 0.82. Parker-Hannifin has a 52 week low of $153.50 and a 52 week high of $212.80. The stock has a market capitalization of $20.71 billion, a P/E ratio of 19.24, a P/E/G ratio of 1.57 and a beta of 1.42.

Parker-Hannifin (NYSE:PH) last issued its earnings results on Thursday, April 26th. The industrial products company reported $2.80 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $2.62 by $0.18. Parker-Hannifin had a net margin of 7.16% and a return on equity of 23.63%. The firm had revenue of $3.75 billion for the quarter, compared to analysts’ expectations of $3.67 billion. During the same quarter last year, the company posted $2.11 earnings per share. Parker-Hannifin’s revenue was up 20.2% on a year-over-year basis. equities research analysts expect that Parker-Hannifin will post 10.08 earnings per share for the current year.

In related news, VP Catherine A. Suever sold 2,148 shares of the firm’s stock in a transaction that occurred on Friday, June 8th. The shares were sold at an average price of $175.13, for a total transaction of $376,179.24. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, VP Robert W. Malone sold 430 shares of the firm’s stock in a transaction that occurred on Monday, April 30th. The shares were sold at an average price of $165.12, for a total transaction of $71,001.60. Following the transaction, the vice president now owns 14,816 shares in the company, valued at approximately $2,446,417.92. The disclosure for this sale can be found here. Insiders have sold 14,578 shares of company stock worth $2,564,440 in the last quarter. Company insiders own 1.12% of the company’s stock.

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Geode Capital Management LLC grew its position in Parker-Hannifin by 2.4% in the fourth quarter. Geode Capital Management LLC now owns 1,406,700 shares of the industrial products company’s stock worth $280,157,000 after buying an additional 32,531 shares during the last quarter. Thomaspartners Inc. grew its position in Parker-Hannifin by 1.1% in the first quarter. Thomaspartners Inc. now owns 1,347,892 shares of the industrial products company’s stock worth $230,530,000 after buying an additional 15,072 shares during the last quarter. Boston Partners grew its position in Parker-Hannifin by 95.7% in the first quarter. Boston Partners now owns 1,266,759 shares of the industrial products company’s stock worth $216,654,000 after buying an additional 619,359 shares during the last quarter. Teachers Advisors LLC grew its position in Parker-Hannifin by 0.4% in the fourth quarter. Teachers Advisors LLC now owns 1,026,295 shares of the industrial products company’s stock worth $204,828,000 after buying an additional 3,987 shares during the last quarter. Finally, Eaton Vance Management grew its position in Parker-Hannifin by 141.6% in the first quarter. Eaton Vance Management now owns 514,556 shares of the industrial products company’s stock worth $88,005,000 after buying an additional 301,597 shares during the last quarter. Institutional investors and hedge funds own 79.93% of the company’s stock.

Parker-Hannifin Company Profile

Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. The company operates in two segments, Diversified Industrial and Aerospace Systems. The Diversified Industrial segment provides static and dynamic sealing devices; filters, systems, and diagnostics solutions to monitor and remove contaminants from fuel, air, oil, water, and other liquids and gases; connectors, which control, transmit, and contain fluid; hydraulic, pneumatic, and electromechanical components and systems for builders and users of industrial and mobile machinery and equipment; and critical flow components for process instrumentation, healthcare, and ultra-high-purity applications, as well as components for use in refrigeration and air conditioning systems, and in fluid control applications for processing, fuel dispensing, beverage dispensing, and mobile emissions.

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