Emerson Electric Co. (EMR) Rating Lowered to Hold at Zacks Investment Research

Zacks Investment Research cut shares of Emerson Electric Co. (NYSE:EMR) from a buy rating to a hold rating in a research report report published on Friday, May 5th.

According to Zacks, “Emerson’s second-quarter fiscal 2017 adjusted earnings were in line with the Zacks Consensus Estimate, and inched up 2% from the year-ago tally on the back of an improving macro environment, restructuring benefits and lower expenses. Going forward, the company’s aggressive restructuring actions and strategic divestures are expected to boost performance. Emerson seems well positioned to benefit from global infrastructure growth, as its core businesses hold dominant positions in markets tied to energy efficiency and infrastructure spending. However, on the flip side, prolonged softness in the oil and gas markets has affected both capital spending and operational expenditure of clients, thereby hurting Emerson’s order rates in power generating alternators and electrical distribution businesses. In light of these issues, the stock has underperformed the Zacks classified Machinery-Electrical industry average over the past year.”

Other analysts also recently issued research reports about the company. Stifel Nicolaus lifted their price target on Emerson Electric from $63.00 to $70.00 and gave the company a buy rating in a research note on Thursday, February 9th. Barclays PLC boosted their price target on Emerson Electric from $56.00 to $63.00 and gave the stock an equal weight rating in a research report on Wednesday, February 8th. Cowen and Company restated a hold rating and set a $62.00 price objective on shares of Emerson Electric in a report on Tuesday, May 2nd. Royal Bank of Canada restated a hold rating and set a $58.00 price objective on shares of Emerson Electric in a report on Tuesday, April 11th. Finally, HSBC Holdings plc upgraded Emerson Electric from a reduce rating to a hold rating and set a $55.00 price objective for the company in a report on Friday, March 3rd. Three analysts have rated the stock with a sell rating, sixteen have given a hold rating and one has issued a buy rating to the company’s stock. The stock has an average rating of Hold and a consensus target price of $55.34.

Emerson Electric (NYSE:EMR) traded up 1.47% during midday trading on Friday, reaching $59.31. The company’s stock had a trading volume of 1,141,573 shares. The company has a market capitalization of $38.22 billion, a price-to-earnings ratio of 25.34 and a beta of 1.17. The company’s 50-day moving average price is $59.18 and its 200-day moving average price is $58.13. Emerson Electric has a 1-year low of $48.45 and a 1-year high of $64.36.

Emerson Electric (NYSE:EMR) last posted its earnings results on Tuesday, May 2nd. The industrial products company reported $0.58 earnings per share for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.58. The firm had revenue of $3.57 billion for the quarter, compared to analyst estimates of $3.49 billion. Emerson Electric had a return on equity of 24.26% and a net margin of 8.50%. The company’s revenue for the quarter was down .1% on a year-over-year basis. During the same period in the previous year, the company posted $0.57 earnings per share. On average, analysts predict that Emerson Electric will post $2.60 earnings per share for the current fiscal year.

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The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 9th. Investors of record on Friday, May 12th will be paid a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a yield of 3.28%. The ex-dividend date of this dividend is Wednesday, May 10th. Emerson Electric’s payout ratio is currently 77.73%.

A number of large investors have recently bought and sold shares of EMR. Northwest Quadrant Wealth Management LLC acquired a new stake in Emerson Electric during the fourth quarter valued at approximately $111,000. First Command Financial Services Inc. increased its position in shares of Emerson Electric by 18.9% in the first quarter. First Command Financial Services Inc. now owns 1,935 shares of the industrial products company’s stock valued at $116,000 after buying an additional 307 shares in the last quarter. Financial Architects Inc increased its position in shares of Emerson Electric by 15.9% in the third quarter. Financial Architects Inc now owns 1,964 shares of the industrial products company’s stock valued at $108,000 after buying an additional 270 shares in the last quarter. Elgethun Capital Management purchased a new position in shares of Emerson Electric during the fourth quarter valued at about $114,000. Finally, Central Bank & Trust Co. increased its position in shares of Emerson Electric by 31.3% in the first quarter. Central Bank & Trust Co. now owns 2,100 shares of the industrial products company’s stock valued at $126,000 after buying an additional 500 shares in the last quarter. 71.04% of the stock is currently owned by institutional investors and hedge funds.

Emerson Electric Company Profile

Emerson Electric Co is a diversified global manufacturing company, which provides solutions to customers by bringing technology and engineering together in the industrial, commercial and consumer markets around the world. The Company operates through four segments based on the nature of the products and services rendered: Process Management, Industrial Automation, Climate Technologies and Commercial & Residential Solutions.

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