Rockwell Automation stock has been making waves on the stock market, with its current price swinging up and down. As of June 22, 2023, the company opened at $320.75 per share. While this is a high price, it is not unusual for the manufacturing automation leader. The company’s current ratio is 1.08 and its quick ratio is 0.73–both of which are strong indicators of financial stability by having enough cash available to cover short-term debts.
However, it may be concerning that Rockwell Automation has a debt-to-equity ratio of 0.83. This means that the company has a significant amount of debt in relation to its equity, which could potentially create complications in the future if the cost of servicing that debt becomes difficult.
The fifty-day simple moving average for Rockwell Automation is $286.20 while the two-hundred day simple moving average is placed at $280.95 The business’s stock value over the past twelve months tells a story of both peaks and valleys in price levels during which time ROK hit a high of approximately $321.94 and a low of $190.08.
ROK’s market capitalisation stands at $36.85 billion – enough to make it one of the largest companies on NYSE exchange with a price-to-earnings (P/E) ratio of 28.24; this figure can be calculated by dividing current market value by earnings generated per share priced at today’s quotations.
Four research analysts have rated ROK as “sell rating”, six have given “hold” rating and another six have labelled it as a “buy rating”. Despite these varying opinions on where to direct investment funds within ROK shares; according to Bloomberg.com, the average rating for this stock is “Hold”.
In terms of insider trading activity related to Rockwell Automation shares; CEO Blake D Moret sold 4,855 shares during the regular trading session on Tuesday, June 13th. The stock sold at an average of $315.00 per share, for a total value of $1,529,325.00. This left him with a stake in the company totalling $20,293,875.
Rockwell Automation reported its earnings for Q1 2023 in late April of that year; during which time they announced an EPS figure of $3.01 that beat estimates by $0.41 per share and brought in revenues of $2.28 billion–25.8% revenue growth year-on-year.
Rockwell Automation is an industry leader in manufacturing automation and with the ever-increasing demand for automation services from industries worldwide it’s almost inevitable that ROK will continue to experience significant growth for years to come.
Despite some concerns about their debt-to-equity ratio and the opinions of different analysts within current market trends; investors can view Rockwell Automation as a stable stock choice with strong earnings and revenue growth trends over recent years..
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Rockwell Automation (NYSE:ROK) Receives Positive Earnings Estimates and Institutional Investor Attention
Rockwell Automation, Inc. (NYSE:ROK) has recently caught the eye of both institutional investors and investment analysts alike. In a note issued to investors on June 20th, Zacks Research boosted their Q1 2024 earnings per share (EPS) estimates for the industrial products company from $2.17 to $2.62 per share. This is indicative of growing positive investor sentiment towards Rockwell Automation’s performance and future prospects.
The consensus estimate for Rockwell Automation’s current full-year earnings is $12.04 per share. Zacks Research also issued optimistic estimations for Rockwell Automation’s Q4 2024 earnings at $3.49 EPS, FY2024 earnings at $12.26 EPS and FY2025 earnings at $13.87 EPS.
Institutional investors have been busy engaging with ROK as well, with several hedge funds having recently bought and sold shares in the company. Vanguard Group Inc., one of the world’s largest investment management companies, boosted its stake in shares of Rockwell Automation by 0.3% in the third quarter, now owning over 13 million shares worth close to $3 billion dollars after acquiring an additional 40,192 shares during that period alone.
The Stockholm-based Alecta Tjanstepension Omsesidigt also increased its stake in ROK by 1.2% in the fourth quarter, while Morgan Stanley purchased an additional 457,383 shares in this same period resulting in a whopping total of over 2 million shares owned by the institution worth around $706 million dollars.
What does all this interest from investment analysts and institutional investors mean for Rockwell Automation? At first glance it seems that they are well positioned for an even stronger financial performance than initially expected.
According to data from MarketBeat.com, Rockwell Automation has received a consensus rating of “Hold” from sixteen brokerages covering the stock—is it time for those brokers to reconsider their position on the stock given its growing performance and investor sentiment? Only time will tell, but as of now, all directions seem to point upwards for Rockwell Automation.