Zacks Investment Research upgraded shares of Terex (NYSE:TEX) from a sell rating to a hold rating in a research note published on Friday morning.
According to Zacks, “Broad-based improvements in Terex’s global markets, operational improvements as well as benefits from its disciplined capital allocation strategy led to the overall upbeat performance. The company raised 2018 adjusted EPS guidance to $2.80-$3.00, reflecting year-over-year growth of 111% at the midpoint. This upbeat outlook can be attributed to strong first-half results, capital-market actions and operational improvements over the balance of 2018. Notably, Terex will gain from focus on the Execute to Win strategy, backlog strength and product development. Over the past year, Terex has underperformed the industry. However, supply-chain challenges in mobile crane operations and higher input costs will affect its results in the near term.”
A number of other equities analysts have also commented on TEX. ValuEngine raised shares of Terex from a hold rating to a buy rating in a research report on Tuesday, July 10th. Jefferies Financial Group raised shares of Terex from a hold rating to a buy rating in a research report on Thursday, June 21st. Seaport Global Securities set a $49.00 price target on shares of Terex and gave the company a buy rating in a research report on Friday, July 13th. UBS Group set a $52.00 price target on shares of Terex and gave the company a buy rating in a research report on Wednesday, August 22nd. Finally, Wells Fargo & Co lowered shares of Terex from an outperform rating to a market perform rating in a research report on Thursday, July 19th. Four research analysts have rated the stock with a sell rating, nine have given a hold rating and seven have assigned a buy rating to the company. Terex presently has a consensus rating of Hold and a consensus price target of $45.50.
Terex (NYSE:TEX) last issued its quarterly earnings data on Tuesday, July 31st. The industrial products company reported $0.98 earnings per share for the quarter, beating the consensus estimate of $0.90 by $0.08. The firm had revenue of $1.40 billion for the quarter, compared to analyst estimates of $1.40 billion. Terex had a net margin of 2.91% and a return on equity of 16.66%. Analysts predict that Terex will post 2.9 earnings per share for the current year.
The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 19th. Stockholders of record on Friday, November 9th will be given a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a dividend yield of 1.10%. The ex-dividend date of this dividend is Thursday, November 8th. Terex’s dividend payout ratio is 29.63%.
Terex announced that its Board of Directors has initiated a stock repurchase program on Thursday, July 12th that authorizes the company to repurchase $300.00 million in outstanding shares. This repurchase authorization authorizes the industrial products company to buy up to 8.7% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s management believes its stock is undervalued.
In other news, insider Steve Filipov sold 6,929 shares of the firm’s stock in a transaction on Friday, August 31st. The shares were sold at an average price of $38.85, for a total value of $269,191.65. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, VP Eric I. Cohen sold 10,000 shares of the firm’s stock in a transaction on Friday, September 14th. The stock was sold at an average price of $39.01, for a total transaction of $390,100.00. Following the completion of the sale, the vice president now owns 182,905 shares in the company, valued at approximately $7,135,124.05. The disclosure for this sale can be found here. In the last 90 days, insiders bought 1,344 shares of company stock worth $52,633 and sold 38,866 shares worth $1,514,531. Company insiders own 3.50% of the company’s stock.
Institutional investors have recently made changes to their positions in the company. Delta Capital Management LLC acquired a new stake in shares of Terex in the second quarter worth $212,000. Lido Advisors LLC acquired a new stake in shares of Terex in the second quarter worth $246,000. Strs Ohio acquired a new stake in shares of Terex in the second quarter worth $307,000. Pinnacle Associates Ltd. grew its stake in shares of Terex by 32.4% in the second quarter. Pinnacle Associates Ltd. now owns 8,170 shares of the industrial products company’s stock worth $345,000 after acquiring an additional 2,001 shares during the last quarter. Finally, GAM Holding AG acquired a new stake in shares of Terex in the second quarter worth $360,000. Institutional investors and hedge funds own 98.72% of the company’s stock.
Terex Corporation manufactures and sells aerial work platforms, cranes, and materials processing machinery worldwide. The company operates through three segments: Aerial Work Platforms (AWP), Cranes, and Material Processing (MP). The AWP segment engages in the design, manufacture, service, and market of AWP equipment, telehandlers, and light towers, as well as related components and replacement parts under the Terex and Genie brands to construct and maintain industrial, commercial, and residential buildings and facilities, and for other commercial operations, as well as used in infrastructure projects.
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