KeyCorp Has Lowered Expectations for Applied Industrial Technologies (NYSE:AIT) Stock Price

Key Points

• KeyCorp lowered Applied Industrial Technologies’ price target from $420 to $360 while maintaining an “overweight” rating; the revised target implies roughly 21% upside from the referenced $297.42 share price.
• Other analysts also adjusted expectations, although sentiment remains positive: AIT has a consensus “Buy” rating and an average target price of $380.
• Shares fell 8.4% despite quarterly EPS of $2.97 exceeding the $2.89 consensus estimate; revenue rose 7.6% year over year to about $1.29 billion, matching forecasts.

Applied Industrial Technologies (NYSE:AIT - Get Free Report) had its price target cut by investment analysts at KeyCorp from $420.00 to $360.00 in a research note issued to investors on Wednesday, Benzinga reports. The brokerage currently has an "overweight" rating on the industrial products company's stock. KeyCorp's price objective indicates a potential upside of 21.04% from the company's current price.

A number of other brokerages also recently issued reports on AIT. Robert W. Baird cut their price objective on Applied Industrial Technologies from $400.00 to $350.00 and set an "outperform" rating for the company in a research note on Wednesday. Weiss Ratings cut shares of Applied Industrial Technologies from a "buy (a-)" rating to a "buy (b)" rating in a research note on Friday. DA Davidson raised their target price on shares of Applied Industrial Technologies from $380.00 to $400.00 and gave the stock a "buy" rating in a research note on Friday, August 14th. Oppenheimer reaffirmed an "outperform" rating on shares of Applied Industrial Technologies in a report on Wednesday. Finally, Wall Street Zen upgraded shares of Applied Industrial Technologies from a "hold" rating to a "buy" rating in a research report on Sunday, October 11th. Seven investment analysts have rated the stock with a Buy rating. According to MarketBeat.com, Applied Industrial Technologies has a consensus rating of "Buy" and a consensus target price of $380.00.

Applied Industrial Technologies Trading Down 8.4%

Shares of AIT stock opened at $297.42 on Wednesday. Applied Industrial Technologies has a 12 month low of $238.72 and a 12 month high of $374.80. The company has a 50 day simple moving average of $330.18 and a two-hundred day simple moving average of $308.87. The stock has a market cap of $10.93 billion, a P/E ratio of 27.14 and a beta of 0.85.

Applied Industrial Technologies (NYSE:AIT - Get Free Report) last released its quarterly earnings results on Tuesday, October 27th. The industrial products company reported $2.97 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.89 by $0.08. The company had revenue of $1.29 billion for the quarter, compared to the consensus estimate of $1.29 billion. The business's revenue for the quarter was up 7.6% on a year-over-year basis. During the same period in the prior year, the firm posted $2.63 EPS. As a group, equities analysts forecast that Applied Industrial Technologies will post 12.00 earnings per share for the current year.

Insider Activity

In related news, CFO David Wells sold 1,812 shares of the business's stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $355.10, for a total value of $643,441.20. Following the transaction, the chief financial officer directly owned 32,050 shares of the company's stock, valued at approximately $11,380,955. The trade was a 5.35% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Peter Wallace sold 1,904 shares of the company's stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $340.45, for a total value of $648,216.80. Following the completion of the transaction, the director owned 22,859 shares of the company's stock, valued at $7,782,346.55. The trade was a 7.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 1.60% of the company's stock.

Hedge Funds Weigh In On Applied Industrial Technologies

Several hedge funds have recently modified their holdings of AIT. BlackRock Inc. bought a new position in shares of Applied Industrial Technologies during the second quarter worth $1,336,805,000. First Trust Advisors LP lifted its stake in Applied Industrial Technologies by 34.3% in the 1st quarter. First Trust Advisors LP now owns 978,840 shares of the industrial products company's stock worth $259,706,000 after purchasing an additional 249,961 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in Applied Industrial Technologies in the 2nd quarter worth $93,672,000. Allspring Global Investments Holdings LLC lifted its stake in Applied Industrial Technologies by 12.3% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 259,786 shares of the industrial products company's stock worth $69,976,000 after purchasing an additional 28,546 shares in the last quarter. Finally, Bank of America Corp DE bought a new position in shares of Applied Industrial Technologies during the 2nd quarter valued at about $70,948,000. Hedge funds and other institutional investors own 93.52% of the company's stock.

More Applied Industrial Technologies News

Here are the key news stories impacting Applied Industrial Technologies this week:

• Positive Sentiment: Quarterly earnings exceeded expectations. Fiscal Q1 2027 EPS was $2.97, above the $2.89 consensus estimate and up from $2.63 a year earlier. Revenue increased 7.6% to approximately $1.29 billion, in line with estimates. Applied Industrial Technologies Reports Fiscal 2027 First Quarter Results
• Positive Sentiment: Management provided a solid full-year outlook. Fiscal 2027 EPS is expected at $11.70 to $12.20, while the company maintained its 4% to 6.5% sales-growth forecast. Reports characterized the outlook as an increase in full-year guidance, although the sales-growth range was unchanged. Applied Industrial Technologies beats Q1 2027 EPS and raises full-year guidance
• Positive Sentiment: The quarterly dividend was maintained. AIT declared a $0.51-per-share quarterly dividend, or $2.04 annualized, with a stated yield of approximately 0.7%. The dividend is payable November 30 to shareholders of record November 13.
• Neutral Sentiment: Analysts remain constructive but more cautious. Robert W. Baird kept an “outperform” rating while lowering its price target from $400 to $350. KeyBanc also reduced its target to $360. The revised targets still imply substantial upside from the referenced $297.42 price. Robert W. Baird stock recommendations
• Negative Sentiment: The market’s reaction suggests expectations were high. Revenue merely matched forecasts, and the post-earnings decline indicates that investors may have wanted stronger growth or more aggressive guidance. The simultaneous price-target cuts reinforce concerns that near-term upside may be more limited despite the earnings beat. Applied Industrial Technologies stock price drops after Q1 results

About Applied Industrial Technologies

Applied Industrial Technologies, Inc NYSE: AIT is a distributor and value-added service provider of industrial motion, power transmission, fluid power, automation, and control products. Its offerings include bearings, mechanical power-transmission components, motors, gearboxes, hydraulic and pneumatic equipment, industrial hoses, process pumps, safety products, and related maintenance supplies.

The company also provides technical and engineering services designed to help customers improve equipment performance, reliability, and productivity.

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