Citigroup Issues Pessimistic Forecast for Rockwell Automation (NYSE:ROK) Stock Price

Key Points

• Citigroup cut its Rockwell Automation price target from $536 to $504 but maintained a Buy rating, implying 34.22% upside from the previous close.
• Analyst sentiment overall is more cautious: MarketBeat reports an average Hold rating and a $467.68 average price target.
• Rockwell beat quarterly earnings-per-share expectations ($3.88 versus $3.69), but revenue missed forecasts at $2.33 billion and rose just 0.7% year over year.

Rockwell Automation (NYSE:ROK - Get Free Report) had its target price decreased by analysts at Citigroup from $536.00 to $504.00 in a report released on Friday, Benzinga reports. The firm presently has a "buy" rating on the industrial products company's stock. Citigroup's target price points to a potential upside of 34.22% from the company's previous close.

A number of other equities analysts have also recently issued reports on ROK. Mizuho decreased their target price on Rockwell Automation from $445.00 to $430.00 and set a "neutral" rating on the stock in a report on Thursday, October 15th. Zacks Research downgraded Rockwell Automation from a "strong-buy" rating to a "hold" rating in a report on Thursday, July 30th. Sanford C. Bernstein increased their price target on Rockwell Automation from $501.00 to $514.00 and gave the company a "market perform" rating in a research report on Friday, August 14th. DA Davidson dropped their price target on Rockwell Automation from $500.00 to $490.00 and set a "neutral" rating on the stock in a research note on Friday, August 21st. Finally, Morgan Stanley set a $520.00 price target on Rockwell Automation in a research note on Friday, October 16th. Nine equities research analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $467.68.

Rockwell Automation Price Performance

NYSE:ROK traded down $5.55 during trading hours on Friday, reaching $375.50. 2,194,665 shares of the company's stock were exchanged, compared to its average volume of 867,033. The company has a market capitalization of $41.70 billion, a P/E ratio of 35.19, a price-to-earnings-growth ratio of 2.10 and a beta of 1.51. Rockwell Automation has a 12 month low of $347.53 and a 12 month high of $497.36. The company has a quick ratio of 0.74, a current ratio of 1.08 and a debt-to-equity ratio of 0.74. The business's 50-day simple moving average is $430.52 and its two-hundred day simple moving average is $427.46.

Rockwell Automation (NYSE:ROK - Get Free Report) last posted its quarterly earnings results on Thursday, November 5th. The industrial products company reported $3.88 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.69 by $0.19. Rockwell Automation had a return on equity of 39.83% and a net margin of 13.39%. The company had revenue of $2.33 billion for the quarter, compared to analysts' expectations of $2.41 billion. During the same quarter in the prior year, the company earned $3.34 earnings per share. The firm's revenue was up .7% on a year-over-year basis. Rockwell Automation has set its FY 2027 guidance at 14.500-15.500 EPS. Sell-side analysts expect that Rockwell Automation will post 13.26 EPS for the current fiscal year.

Insider Activity

In other news, SVP Matheus De A. G. Viera Bulho sold 400 shares of the firm's stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $420.14, for a total value of $168,056.00. Following the completion of the sale, the senior vice president owned 867 shares of the company's stock, valued at $364,261.38. This trade represents a 31.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Patricia A. Watson sold 1,100 shares of Rockwell Automation stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $431.43, for a total value of $474,573.00. Following the transaction, the director owned 6,385 shares in the company, valued at $2,754,680.55. This represents a 14.70% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 2,711 shares of company stock valued at $1,164,880 in the last 90 days. Company insiders own 0.76% of the company's stock.

Hedge Funds Weigh In On Rockwell Automation

Several institutional investors and hedge funds have recently bought and sold shares of ROK. Flputnam Investment Management Co. bought a new position in Rockwell Automation during the second quarter worth about $1,001,000. Mandatum Life Insurance Co Ltd grew its stake in shares of Rockwell Automation by 26.9% in the 1st quarter. Mandatum Life Insurance Co Ltd now owns 22,200 shares of the industrial products company's stock valued at $7,967,000 after purchasing an additional 4,700 shares during the period. Lombard Odier Asset Management Europe Ltd grew its stake in shares of Rockwell Automation by 54.2% in the 1st quarter. Lombard Odier Asset Management Europe Ltd now owns 36,211 shares of the industrial products company's stock valued at $12,995,000 after purchasing an additional 12,727 shares during the period. Contravisory Investment Management Inc. raised its holdings in shares of Rockwell Automation by 9,354.2% in the 2nd quarter. Contravisory Investment Management Inc. now owns 18,152 shares of the industrial products company's stock worth $8,987,000 after buying an additional 17,960 shares in the last quarter. Finally, Fifth Third Bancorp raised its holdings in shares of Rockwell Automation by 642.7% in the 1st quarter. Fifth Third Bancorp now owns 35,154 shares of the industrial products company's stock worth $12,616,000 after buying an additional 30,421 shares in the last quarter. Hedge funds and other institutional investors own 75.75% of the company's stock.

Rockwell Automation News Roundup

Here are the key news stories impacting Rockwell Automation this week:

• Positive Sentiment: Quarterly adjusted EPS of $3.88 beat consensus estimates, while profit benefited from margin expansion and stronger performance in some segments. Reports also highlighted AI-related segment growth as a support for results. Rockwell Automation Q4 Earnings Beat Estimates on Margin Gains
• Neutral Sentiment: FY2027 EPS guidance of $14.50–$15.50 brackets the $14.92 consensus estimate. Revenue guidance of $9.4 billion–$9.7 billion also spans the $9.6 billion consensus, offering no clear upward surprise. Rockwell Automation Issues Fiscal 2027 Outlook
• Neutral Sentiment: Stephens lowered its price target from $550 to $500 but maintained an Overweight rating. The reduced target is a headwind, though the firm still sees substantial upside from the cited share price. Stephens stock recommendations
• Negative Sentiment: Revenue of $2.33 billion missed the $2.41 billion estimate and grew just 0.7% year over year. The sales miss and limited growth likely weighed on sentiment despite the EPS beat. Rockwell Automation misses sales expectations

About Rockwell Automation

Rockwell Automation, Inc NYSE: ROK is a global provider of industrial automation and digital transformation technologies. The company helps manufacturers and industrial organizations improve productivity, safety, quality and operational efficiency through connected hardware, software and services.

Its product portfolio includes industrial control systems, programmable logic controllers, motor control and sensing equipment, industrial computers, safety products, networking technologies and power-control solutions.

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