Investors Buy Emerson Electric (EMR) on Weakness

Investors bought shares of Emerson Electric Co. (NYSE:EMR) on weakness during trading hours on Friday. $98.04 million flowed into the stock on the tick-up and $41.01 million flowed out of the stock on the tick-down, for a money net flow of $57.03 million into the stock. Of all companies tracked, Emerson Electric had the 30th highest net in-flow for the day. Emerson Electric traded down ($0.33) for the day and closed at $69.62

Several analysts recently commented on EMR shares. Barclays raised their price objective on shares of Emerson Electric from $85.00 to $88.00 and gave the company an “overweight” rating in a research note on Monday, September 24th. Zacks Investment Research upgraded shares of Emerson Electric from a “hold” rating to a “buy” rating and set a $80.00 price objective for the company in a research note on Monday, August 6th. Bank of America raised their price objective on shares of Emerson Electric from $82.00 to $90.00 and gave the company a “buy” rating in a research note on Thursday, October 4th. Morgan Stanley started coverage on shares of Emerson Electric in a research note on Monday, August 20th. They issued an “overweight” rating and a $85.00 price objective for the company. Finally, UBS Group raised their price objective on shares of Emerson Electric from $85.00 to $90.00 and gave the company a “buy” rating in a research note on Thursday, August 30th. One research analyst has rated the stock with a sell rating, nine have issued a hold rating and thirteen have given a buy rating to the stock. Emerson Electric currently has a consensus rating of “Buy” and an average price target of $78.67.

The company has a debt-to-equity ratio of 0.37, a quick ratio of 0.97 and a current ratio of 1.23. The firm has a market cap of $42.62 billion, a price-to-earnings ratio of 26.37, a PEG ratio of 1.78 and a beta of 1.15.

Emerson Electric (NYSE:EMR) last posted its earnings results on Tuesday, August 7th. The industrial products company reported $0.88 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.86 by $0.02. Emerson Electric had a net margin of 12.33% and a return on equity of 22.83%. The firm had revenue of $4.46 billion during the quarter, compared to the consensus estimate of $4.47 billion. During the same period last year, the firm posted $0.68 EPS. The firm’s revenue for the quarter was up 10.3% on a year-over-year basis. As a group, analysts forecast that Emerson Electric Co. will post 3.22 EPS for the current year.

In other Emerson Electric news, President Edward L. Monser sold 30,000 shares of the firm’s stock in a transaction dated Friday, September 7th. The shares were sold at an average price of $75.84, for a total transaction of $2,275,200.00. Following the completion of the transaction, the president now directly owns 176,477 shares in the company, valued at approximately $13,384,015.68. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, President Edward L. Monser sold 60,000 shares of the firm’s stock in a transaction dated Monday, September 10th. The shares were sold at an average price of $76.10, for a total transaction of $4,566,000.00. Following the transaction, the president now owns 176,477 shares of the company’s stock, valued at $13,429,899.70. The disclosure for this sale can be found here. Insiders have sold a total of 96,409 shares of company stock valued at $7,317,004 over the last 90 days. 0.79% of the stock is currently owned by insiders.

Several hedge funds and other institutional investors have recently modified their holdings of the company. Bank of America Corp DE grew its holdings in shares of Emerson Electric by 1.8% during the second quarter. Bank of America Corp DE now owns 23,145,471 shares of the industrial products company’s stock worth $1,600,277,000 after buying an additional 417,445 shares in the last quarter. Northern Trust Corp grew its holdings in shares of Emerson Electric by 0.9% during the second quarter. Northern Trust Corp now owns 9,540,319 shares of the industrial products company’s stock worth $659,617,000 after buying an additional 80,807 shares in the last quarter. American Century Companies Inc. grew its holdings in shares of Emerson Electric by 1.1% during the second quarter. American Century Companies Inc. now owns 4,594,851 shares of the industrial products company’s stock worth $317,688,000 after buying an additional 51,585 shares in the last quarter. Schwab Charles Investment Management Inc. grew its holdings in shares of Emerson Electric by 1.5% during the second quarter. Schwab Charles Investment Management Inc. now owns 4,168,307 shares of the industrial products company’s stock worth $288,197,000 after buying an additional 62,727 shares in the last quarter. Finally, FMR LLC grew its holdings in shares of Emerson Electric by 22.2% during the second quarter. FMR LLC now owns 3,430,748 shares of the industrial products company’s stock worth $237,202,000 after buying an additional 622,701 shares in the last quarter. Institutional investors and hedge funds own 70.29% of the company’s stock.

About Emerson Electric (NYSE:EMR)

Emerson Electric Co, a technology and engineering company, provides various solutions to industrial, commercial, and residential markets worldwide. The company's Automation Solutions segment offers software; measurement and analytical instrumentation; valves, actuators, and regulators; industry services and solutions; process control systems and solutions; and digital plant solutions.

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