Rockwell Automation (NYSE:ROK) Sets New 12-Month High on Earnings Beat

Rockwell Automation, Inc. (NYSE:ROK) reached a new 52-week high on Tuesday following a stronger than expected earnings report. The stock traded as high as $308.70 and last traded at $302.14, with a volume of 2936299 shares changing hands. The stock had previously closed at $268.40.

The industrial products company reported $1.83 EPS for the quarter, topping the consensus estimate of $1.61 by $0.22. Rockwell Automation had a net margin of 11.53% and a return on equity of 30.42%.

Rockwell Automation Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, March 10th. Shareholders of record on Tuesday, February 18th will be given a dividend of $1.31 per share. The ex-dividend date of this dividend is Tuesday, February 18th. This represents a $5.24 annualized dividend and a dividend yield of 1.74%. Rockwell Automation’s payout ratio is currently 63.29%.

Analyst Ratings Changes

Several brokerages have commented on ROK. BNP Paribas began coverage on shares of Rockwell Automation in a research report on Wednesday, November 13th. They set an “outperform” rating and a $345.00 target price on the stock. Barclays boosted their target price on shares of Rockwell Automation from $285.00 to $300.00 and gave the stock an “equal weight” rating in a research report on Tuesday. Jefferies Financial Group upgraded shares of Rockwell Automation from a “hold” rating to a “buy” rating and boosted their target price for the stock from $290.00 to $350.00 in a research report on Thursday, December 12th. Mizuho boosted their price objective on shares of Rockwell Automation from $245.00 to $270.00 and gave the stock a “neutral” rating in a research report on Thursday, October 17th. Finally, Morgan Stanley raised their target price on shares of Rockwell Automation from $335.00 to $345.00 and gave the company an “overweight” rating in a report on Wednesday. Three investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and ten have assigned a buy rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $308.05.

Insiders Place Their Bets

In other news, VP Scott Genereux sold 279 shares of the stock in a transaction dated Thursday, December 5th. The shares were sold at an average price of $296.13, for a total transaction of $82,620.27. Following the transaction, the vice president now directly owns 2,891 shares in the company, valued at $856,111.83. This represents a 8.80 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Blake D. Moret sold 26,700 shares of the stock in a transaction dated Monday, November 25th. The stock was sold at an average price of $298.63, for a total transaction of $7,973,421.00. Following the transaction, the chief executive officer now owns 78,115 shares in the company, valued at approximately $23,327,482.45. The trade was a 25.47 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 35,857 shares of company stock valued at $10,678,037 in the last ninety days. Insiders own 0.68% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Ashton Thomas Securities LLC purchased a new position in Rockwell Automation in the third quarter valued at approximately $26,000. Richardson Financial Services Inc. raised its holdings in Rockwell Automation by 100.0% in the third quarter. Richardson Financial Services Inc. now owns 96 shares of the industrial products company’s stock valued at $26,000 after buying an additional 48 shares during the period. West Oak Capital LLC raised its holdings in Rockwell Automation by 455.6% in the fourth quarter. West Oak Capital LLC now owns 100 shares of the industrial products company’s stock valued at $29,000 after buying an additional 82 shares during the period. Bank of Jackson Hole Trust purchased a new position in Rockwell Automation in the fourth quarter valued at approximately $34,000. Finally, SBI Securities Co. Ltd. purchased a new position in Rockwell Automation in the fourth quarter valued at approximately $35,000. 75.75% of the stock is currently owned by hedge funds and other institutional investors.

Rockwell Automation Price Performance

The stock has a market cap of $34.14 billion, a PE ratio of 36.47, a price-to-earnings-growth ratio of 2.89 and a beta of 1.35. The company’s fifty day moving average is $286.07 and its 200 day moving average is $275.47. The company has a quick ratio of 0.72, a current ratio of 1.08 and a debt-to-equity ratio of 0.70.

About Rockwell Automation

Rockwell Automation, Inc provides industrial automation and digital transformation solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through three segments, Intelligent Devices, Software & Control, and Lifecycle Services. Its solutions include hardware and software products and services.