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

Rockwell Automation, Inc. (NYSE:ROK)’s share price gapped up prior to trading on Monday following a better than expected earnings announcement. 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 trading hands.

The industrial products company reported $1.83 earnings per share for the quarter, beating 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 company also recently announced a quarterly dividend, which will be paid on Monday, March 10th. Stockholders of record on Tuesday, February 18th will be issued a dividend of $1.31 per share. This represents a $5.24 annualized dividend and a dividend yield of 1.75%. The ex-dividend date of this dividend is Tuesday, February 18th. Rockwell Automation’s dividend payout ratio (DPR) is 63.29%.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on ROK shares. Morgan Stanley boosted their price target on shares of Rockwell Automation from $320.00 to $335.00 and gave the stock an “overweight” rating in a report on Friday, November 15th. Citigroup boosted their price target on shares of Rockwell Automation from $313.00 to $345.00 and gave the stock a “buy” rating in a report on Monday, December 9th. Barclays cut their price target on shares of Rockwell Automation from $290.00 to $285.00 and set an “equal weight” rating for the company in a report on Wednesday, January 8th. UBS Group started coverage on shares of Rockwell Automation in a report on Wednesday, November 13th. They issued a “neutral” rating and a $313.00 price target for the company. Finally, BNP Paribas started coverage on shares of Rockwell Automation in a report on Wednesday, November 13th. They issued an “outperform” rating and a $345.00 price target for the company. Two analysts have rated the stock with a sell rating, seven have given a hold rating and ten have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $304.16.

Insider Activity

In related news, VP Scott Genereux sold 278 shares of the company’s stock in a transaction that occurred on Monday, December 9th. The shares were sold at an average price of $302.04, for a total transaction of $83,967.12. Following the sale, the vice president now directly owns 3,184 shares in the company, valued at approximately $961,695.36. This represents a 8.03 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP John M. Miller sold 467 shares of the company’s stock in a transaction that occurred on Monday, November 18th. The stock was sold at an average price of $284.07, for a total transaction of $132,660.69. Following the sale, the vice president now owns 4,800 shares in the company, valued at $1,363,536. The trade was a 8.87 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 35,857 shares of company stock valued at $10,678,037. 0.68% of the stock is currently owned by insiders.

Institutional Trading of Rockwell Automation

Large investors have recently made changes to their positions in the company. Richardson Financial Services Inc. increased its stake in shares of Rockwell Automation by 100.0% during the third quarter. Richardson Financial Services Inc. now owns 96 shares of the industrial products company’s stock worth $26,000 after buying an additional 48 shares during the period. Ashton Thomas Securities LLC purchased a new position in Rockwell Automation in the third quarter valued at approximately $26,000. West Oak Capital LLC increased its stake 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 purchasing an additional 82 shares during the last quarter. Darwin Wealth Management LLC purchased a new position in Rockwell Automation in the third quarter valued at approximately $34,000. Finally, Bank of Jackson Hole Trust purchased a new position in Rockwell Automation in the fourth quarter valued at approximately $34,000. 75.75% of the stock is currently owned by hedge funds and other institutional investors.

Rockwell Automation Price Performance

The company has a market capitalization of $33.76 billion, a PE ratio of 35.83, a price-to-earnings-growth ratio of 2.89 and a beta of 1.35. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.08 and a quick ratio of 0.72. The company’s 50 day simple moving average is $285.72 and its 200 day simple moving average is $275.06.

Rockwell Automation Company Profile

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.