Ingersoll-Rand (NYSE:IR) Downgraded by Zacks Investment Research to Sell

Zacks Investment Research downgraded shares of Ingersoll-Rand (NYSE:IR) from a hold rating to a sell rating in a research report report published on Monday morning, Zacks.com reports. The brokerage currently has $138.00 price target on the industrial products company’s stock.

According to Zacks, “Year to date, Ingersoll-Rand's shares have outperformed the industry. The company believes that stellar sales generated from the Commercial and residential HVAC markets will bolster revenues in the quarters ahead. Further, an effective operating system, pricing actions, investments on innovation and the Precision Flow Systems buyout are expected to boost profitability. For 2019, it expects adjusted earnings per share of $6.40. The company anticipates revenue growth of 5.5-6.5% for the year. However, material cost inflation, tariff-related woes and high debts will likely affect its performance in 2019. Interest expenses from senior notes offered in March 2019 are predicted to be $60 million ($47 million will be incurred in 2019). In the past 60 days, earnings estimates have declined for the fourth quarter of 2019 and the first quarter of 2020.”

Other research analysts have also recently issued reports about the stock. Stephens cut shares of Ingersoll-Rand from an overweight rating to an equal rating in a research report on Monday, October 7th. BMO Capital Markets set a $145.00 price target on shares of Ingersoll-Rand and gave the company a buy rating in a report on Monday, November 4th. Barclays reaffirmed a buy rating and set a $134.00 price target on shares of Ingersoll-Rand in a research note on Friday, October 4th. KeyCorp boosted their price objective on shares of Ingersoll-Rand from $135.00 to $140.00 and gave the stock an overweight rating in a report on Wednesday, October 30th. Finally, JPMorgan Chase & Co. cut their price objective on shares of Ingersoll-Rand from $140.00 to $129.00 and set an overweight rating on the stock in a report on Thursday, October 10th. One analyst has rated the stock with a sell rating, four have given a hold rating and nine have given a buy rating to the company. The stock has a consensus rating of Buy and a consensus price target of $135.25.

Shares of NYSE:IR opened at $129.29 on Monday. The company has a market cap of $31.41 billion, a P/E ratio of 23.05, a PEG ratio of 1.91 and a beta of 1.22. The company has a debt-to-equity ratio of 0.68, a quick ratio of 0.88 and a current ratio of 1.28. Ingersoll-Rand has a one year low of $85.15 and a one year high of $132.42. The business’s 50-day simple moving average is $126.07 and its 200 day simple moving average is $122.93.

Ingersoll-Rand (NYSE:IR) last released its quarterly earnings results on Tuesday, October 29th. The industrial products company reported $1.99 EPS for the quarter, topping the consensus estimate of $1.91 by $0.08. Ingersoll-Rand had a return on equity of 21.72% and a net margin of 8.38%. The firm had revenue of $4.16 billion for the quarter, compared to analyst estimates of $4.30 billion. During the same period in the previous year, the company posted $1.75 EPS. Ingersoll-Rand’s revenue for the quarter was up 2.8% on a year-over-year basis. Analysts predict that Ingersoll-Rand will post 6.4 earnings per share for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 31st. Stockholders of record on Friday, December 6th will be paid a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 1.64%. The ex-dividend date is Thursday, December 5th. Ingersoll-Rand’s dividend payout ratio (DPR) is currently 37.79%.

In other Ingersoll-Rand news, SVP Keith A. Sultana sold 7,010 shares of the stock in a transaction on Tuesday, October 29th. The shares were sold at an average price of $125.00, for a total transaction of $876,250.00. Following the transaction, the senior vice president now directly owns 19,608 shares in the company, valued at approximately $2,451,000. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Marcia J. Avedon sold 7,450 shares of the stock in a transaction on Friday, November 1st. The shares were sold at an average price of $129.00, for a total transaction of $961,050.00. Following the transaction, the senior vice president now owns 99,075 shares in the company, valued at $12,780,675. The disclosure for this sale can be found here. 0.71% of the stock is currently owned by company insiders.

A number of hedge funds have recently made changes to their positions in IR. FDx Advisors Inc. acquired a new stake in Ingersoll-Rand during the second quarter valued at approximately $226,000. Whittier Trust Co. lifted its stake in Ingersoll-Rand by 3.3% during the second quarter. Whittier Trust Co. now owns 4,770 shares of the industrial products company’s stock worth $604,000 after purchasing an additional 154 shares during the last quarter. Commerzbank Aktiengesellschaft FI lifted its stake in Ingersoll-Rand by 133.0% during the second quarter. Commerzbank Aktiengesellschaft FI now owns 5,143 shares of the industrial products company’s stock worth $651,000 after purchasing an additional 2,936 shares during the last quarter. Quadrant Capital Group LLC lifted its stake in Ingersoll-Rand by 103.3% during the second quarter. Quadrant Capital Group LLC now owns 1,813 shares of the industrial products company’s stock worth $224,000 after purchasing an additional 921 shares during the last quarter. Finally, Greenleaf Trust lifted its stake in Ingersoll-Rand by 5.0% during the second quarter. Greenleaf Trust now owns 2,938 shares of the industrial products company’s stock worth $372,000 after purchasing an additional 140 shares during the last quarter. 78.92% of the stock is owned by institutional investors.

About Ingersoll-Rand

Ingersoll-Rand Plc designs, manufactures, sells, and services industrial and commercial products. The company operates through Climate and Industrial segments. The Climate segment offers air conditioners, exchangers, and handlers; airside and terminal devices; auxiliary power units; chillers; coils and condensers; gensets; furnaces; heat pumps; home automation; humidifiers; hybrid and non-diesel transport refrigeration, and ice energy storage solutions; indoor air quality; industrial refrigeration; motor replacements; refrigerant reclamation; thermostats/controls; transport heater products; and water source heat pumps.

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