Rockwell Automation (NYSE:ROK) Shares Gap Up After Earnings Beat

Shares of Rockwell Automation, Inc. (NYSE:ROK) gapped up before the market opened on Monday after the company announced better than expected quarterly earnings. The stock had previously closed at $268.40, but opened at $290.67. Rockwell Automation shares last traded at $294.53, with a volume of 419,357 shares changing hands.

The industrial products company reported $1.83 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 Dividend Announcement

The company also recently disclosed 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. This represents a $5.24 dividend on an annualized basis and a yield of 1.75%. The ex-dividend date is Tuesday, February 18th. Rockwell Automation’s dividend payout ratio (DPR) is 63.29%.

Analysts Set New Price Targets

ROK has been the topic of a number of analyst reports. Stephens upgraded shares of Rockwell Automation from an “equal weight” rating to an “overweight” rating and boosted their price objective for the company from $275.00 to $350.00 in a research report on Thursday, January 16th. Bank of America upped their price target on shares of Rockwell Automation from $270.00 to $285.00 and gave the stock a “neutral” rating in a report on Thursday, October 17th. Barclays cut their price target on shares of Rockwell Automation from $290.00 to $285.00 and set an “equal weight” rating on the stock in a report on Wednesday, January 8th. Mizuho increased their target price on shares of Rockwell Automation from $245.00 to $270.00 and gave the stock a “neutral” rating in a report on Thursday, October 17th. Finally, BNP Paribas began coverage on shares of Rockwell Automation in a report on Wednesday, November 13th. They set an “outperform” rating and a $345.00 target price on the stock. Two 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 company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $304.16.

Insider Buying and Selling at Rockwell Automation

In related news, VP John M. Miller sold 467 shares of the stock in a transaction that occurred on Monday, November 18th. The shares were sold at an average price of $284.07, for a total value of $132,660.69. Following the completion of the transaction, the vice president now directly owns 4,800 shares of the company’s stock, valued at $1,363,536. This trade represents a 8.87 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Scott Genereux sold 279 shares of the stock in a transaction that occurred on Thursday, December 5th. The shares were sold at an average price of $296.13, for a total transaction of $82,620.27. Following the completion of the transaction, the vice president now directly owns 2,891 shares of the company’s stock, valued at $856,111.83. The trade was a 8.80 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 35,857 shares of company stock valued at $10,678,037. 0.68% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rockwell Automation

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Skandinaviska Enskilda Banken AB publ increased its holdings in Rockwell Automation by 0.5% in the 4th quarter. Skandinaviska Enskilda Banken AB publ now owns 23,781 shares of the industrial products company’s stock worth $6,793,000 after buying an additional 126 shares during the period. Erste Asset Management GmbH acquired a new position in Rockwell Automation in the 4th quarter worth approximately $5,824,000. Connor Clark & Lunn Investment Management Ltd. increased its holdings in Rockwell Automation by 380.0% in the 4th quarter. Connor Clark & Lunn Investment Management Ltd. now owns 6,399 shares of the industrial products company’s stock worth $1,829,000 after buying an additional 5,066 shares during the period. Avantax Advisory Services Inc. increased its holdings in Rockwell Automation by 23.7% in the 4th quarter. Avantax Advisory Services Inc. now owns 5,500 shares of the industrial products company’s stock worth $1,572,000 after buying an additional 1,052 shares during the period. Finally, Knuff & Co LLC increased its holdings in Rockwell Automation by 41.0% in the 4th quarter. Knuff & Co LLC now owns 141 shares of the industrial products company’s stock worth $40,000 after buying an additional 41 shares during the period. 75.75% of the stock is owned by hedge funds and other institutional investors.

Rockwell Automation Trading Up 11.3 %

The company’s fifty day moving average is $285.72 and its two-hundred day moving average is $275.06. The company has a debt-to-equity ratio of 0.70, a quick ratio of 0.72 and a current ratio of 1.08. The company has a market cap of $33.76 billion, a price-to-earnings ratio of 35.83, a P/E/G ratio of 2.89 and a beta of 1.35.

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.