Forsta AP Fonden has reduced its investment in Rockwell Automation, Inc. (NYSE: ROK) by 1.3% during the second quarter of 2023, as reported in its latest filing with the Securities and Exchange Commission. The firm now holds 23,300 shares after selling 300 shares in the period, which valued the holdings at approximately $7.74 million.
Other institutional investors have been active regarding their stakes in Rockwell Automation. Capital Investment Advisors LLC increased its holdings by 5.7%, acquiring 119 additional shares, bringing their total to 2,192 shares, worth around $728,000. Similarly, CWM LLC grew its stake by 3.7% in the first quarter, owning 2,353 shares valued at $608,000 after purchasing 84 extra shares. Brighton Jones LLC also entered the market with a new position in the fourth quarter, investing $281,000.
Additionally, J.W. Cole Advisors Inc. significantly increased its stake by 128.7% in the first quarter, owning 4,382 shares valued at $1.13 million. Overall, hedge funds and institutional investors collectively own 75.75% of Rockwell Automation.
Analysts’ Ratings and Performance
Several brokerage firms have recently weighed in on Rockwell Automation’s stock. Oppenheimer reaffirmed an “outperform” rating and set a target price of $391.00 on November 7, 2023. KeyCorp raised its price target from $370.00 to $380.00, also issuing an “overweight” rating. Barclays increased its target from $370.00 to $417.00, maintaining an “overweight” rating. Morgan Stanley further lifted its price target from $385.00 to $435.00.
Currently, the consensus rating for Rockwell Automation is “Moderate Buy,” with an average price target of $364.75. A total of one analyst has rated the stock as a Strong Buy, twelve as Buy, four as Hold, and one as Sell.
Insider Transactions and Stock Performance
In recent insider trading activity, Senior Vice President Matheus De A. G. Viera Bulho sold 822 shares on October 29, 2023, at an average price of $365.00, totaling $300,030.00. This sale marked a 45.54% decrease in his ownership. Vice President Isaac Woods sold 365 shares on August 29, 2023, at an average price of $348.44, resulting in a total of $127,180.60 and a 17.75% decrease in his stake. Over the last ninety days, insiders have sold a total of 92,075 shares worth $34.82 million.
As of trading on November 6, 2023, Rockwell Automation shares opened at $379.15. The company has a market capitalization of $42.63 billion, with a price-to-earnings ratio of 44.50 and a beta of 1.45. The stock’s performance shows a 52-week low of $215.00 and a high of $398.20.
On the earnings front, Rockwell Automation reported $3.34 earnings per share (EPS) for the quarter ending November 6, 2023, surpassing the consensus estimate of $2.94 by $0.40. The company’s revenue for the quarter was $2.32 billion, exceeding expectations of $2.19 billion. This represents a 13.8% increase compared to the same quarter last year.
The company has set its fiscal year 2026 guidance at $11.20-12.20 EPS, and analysts predict an EPS of $9.35 for the current fiscal year.
In a further positive development, Rockwell Automation announced an increase in its quarterly dividend to $1.38, payable on December 10, 2023. Stockholders of record on November 17, 2023, will receive this dividend, which represents an annualized yield of 1.5% and a boost from the previous quarterly dividend of $1.31. The company’s dividend payout ratio stands at 72.06%.
Founded in 1903, Rockwell Automation, Inc. specializes in providing industrial automation and digital transformation solutions across various regions, including North America, Europe, and the Asia Pacific. Its operations are divided into three segments: Intelligent Devices, Software & Control, and Lifecycle Services, delivering a wide range of hardware, software, and services to its clients.
