Terex Co. (NYSE:TEX) may have been given a “Hold” rating by the majority of research firms covering the stock, but the industrial products company’s recent financial performance indicates that it may deserve more attention from investors.
Terex Corp. operates through two segments – Material Processing and Aerial Work Platforms – and specialises in the design, manufacture, service and marketing of machinery including crushers, washing systems, screens, pick and carry cranes, rough terrain cranes, tower cranes and wood processing equipment.
Despite being less well-known than some of its industry peers, Terex has delivered substantial revenue growth in recent quarters. The company recorded an 8% increase in net sales in Q1 2023 YoY, driven by double-digit growth in both Material Processing equipment and Aerial Work Platforms.
This positive trajectory has not gone unnoticed among stockholders as several hedge funds have recently modified their holdings of the business. These include Ameritas Advisory Services LLC which purchased a new stake valued at approximately $26k while Tucker Asset Management LLC bought a new stake worth $27k.
Parkside Financial Bank & Trust increased its holdings by 87.5% during the same period while Bessemer Group Inc. lifted its holdings by 130.6% – evidence that institutional investors are starting to recognise the potential upside for this industrials company.
With such strong growth potential and bullish investor sentiment signalling a bright future ahead for Terex Co., analysts should take note that this industrial equipment manufacturer could be undervalued by the market today.
Bloomberg notes that six out of fifteen research analysts recommend “Hold” on Terex whilst three suggest “Buy”. That said, investors should consider conducting due diligence on Terex’s competitive stance relative to its relevant peers as well as parsing any earnings announcement or material developments concerning regulatory conditions within this segment before making any decisions about investing.
The average twelve-month price target among brokers, who have updated their coverage in the last year, is $55.45. Therefore, long-term investors should pay attention to this stock as its growth potential seems to outweigh downside risks.
Terex Corp.: Analyst Ratings and Insider Selling Spark Discussions among Investors
Terex Corp. has been the talk of the town lately, with numerous analysts reporting on its stock ratings and target prices. On May 3rd, 58.com reaffirmed a “maintains” rating on Terex’s shares in a research report, while StockNews.com began coverage of Terex with a “buy” rating on March 16th. KeyCorp was also bullish on Terex, lifting its target price from $56 to $72 and giving the stock an “overweight” rating on February 13th. Deutsche Bank Aktiengesellschaft followed suit, increasing its target price from $51 to $53 and giving the share a “hold” rating on April 12th.
Barclays also weighed in, boosting Terex’s target price from $38 to $56 and assigning it an “equal weight” rating on February 13th. Despite this positive news and analyst reports, insiders have sold around 380k shares of company stock worth over $21m over the past ninety days alone. Corporate insiders now own just over 2% of the company’s stock.
Terex operates in two main segments: Materials Processing and Aerial Work Platforms. The former designs, manufactures, services, and markets materials processing equipment like crushers, washing systems, screens, apron feeders, material handlers for construction projects like pick-and-carry cranes or concrete mixer trucks among other things.
The Material Processing segment works together with Aerial Work Platforms segment which designs market-leading machinery including truck-mounted aerial work platforms as well as rough terrain cranes and tower cranes.
As of May 12th , NYSE TEX is currently trading at $46.89 after opening at that same price earlier that day; however Terex has seen highs of up to $60.85 over the past year along with lows hitting close to about half those values ($26.64). On average analysts predict that Terex will post 5.98 earnings per share for the current year with a market capitalization of around $3.18 billion, a price-to-earnings ratio of 8.93, and a price-to-earnings growth ratio of about 0.45 as well as a beta of 1.62.
Terex continues to grow and lead its industry with its innovative products and positive financial results, despite some insider selling activity that raises questions among investors and analysts alike. Nonetheless, stocks remain strong and ultimately it is up to individual investors to decide if Terex is an opportunity worth investing in for their portfolios based on their own due diligence and risk assessments.