PTC (NASDAQ:PTC) Stock Rating Lowered by Rosenblatt Securities

Key Points

• Rosenblatt Securities downgraded PTC from “strong buy” to “hold,” joining a broader analyst consensus that includes 13 Hold ratings, two Buys and one Sell; the consensus price target is $190.56.
• PTC shares surged after Schneider Electric agreed to acquire the company for $205 per share in cash, a roughly 42% premium to the prior closing price. The deal still requires shareholder and regulatory approval, creating completion risk.
• PTC’s latest quarter showed adjusted EPS of $1.58, slightly above estimates, but revenue fell 6.8% year over year to $600.05 million and missed expectations. Institutional investors own approximately 95.14% of the stock.

PTC (NASDAQ:PTC - Get Free Report) was downgraded by Rosenblatt Securities from a "strong-buy" rating to a "hold" rating in a research note issued on Monday, Zacks reports.

Several other equities analysts also recently weighed in on PTC. Stifel Nicolaus set a $205.00 target price on shares of PTC in a research note on Monday. Robert W. Baird downgraded shares of PTC from a "strong-buy" rating to a "hold" rating in a report on Monday. Barclays reissued an "equal weight" rating and set a $205.00 target price on shares of PTC in a report on Monday. Piper Sandler dropped their target price on PTC from $175.00 to $157.00 and set a "neutral" rating on the stock in a research report on Thursday, July 30th. Finally, Wall Street Zen cut PTC from a "buy" rating to a "hold" rating in a research report on Saturday, June 27th. Two investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $190.56.

PTC Stock Up 33.5%

PTC opened at $192.26 on Monday. The stock has a market cap of $20.86 billion, a price-to-earnings ratio of 18.59, a PEG ratio of 1.81 and a beta of 0.99. The company's 50-day moving average price is $144.06 and its two-hundred day moving average price is $137.21. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.40. PTC has a twelve month low of $108.50 and a twelve month high of $206.82.

PTC (NASDAQ:PTC - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The technology company reported $1.58 earnings per share for the quarter, topping the consensus estimate of $1.57 by $0.01. PTC had a return on equity of 25.31% and a net margin of 41.67%.The company had revenue of $600.05 million during the quarter, compared to analyst estimates of $611.62 million. During the same quarter last year, the firm posted $1.64 EPS. The firm's revenue for the quarter was down 6.8% on a year-over-year basis. PTC has set its FY 2026 guidance at 7.870-8.420 EPS and its Q4 2026 guidance at 1.630-2.210 EPS. As a group, equities analysts expect that PTC will post 6.56 earnings per share for the current year.

Hedge Funds Weigh In On PTC

A number of institutional investors have recently added to or reduced their stakes in the business. QRG Capital Management Inc. boosted its position in shares of PTC by 13.2% during the 2nd quarter. QRG Capital Management Inc. now owns 7,089 shares of the technology company's stock valued at $805,000 after acquiring an additional 828 shares during the last quarter. State Street Corp increased its position in shares of PTC by 10.2% in the second quarter. State Street Corp now owns 6,452,323 shares of the technology company's stock worth $733,048,000 after purchasing an additional 596,955 shares during the last quarter. Tidal Investments LLC raised its stake in PTC by 25.1% in the second quarter. Tidal Investments LLC now owns 40,728 shares of the technology company's stock valued at $4,627,000 after purchasing an additional 8,177 shares in the last quarter. Archford Capital Strategies LLC raised its stake in PTC by 4.7% in the second quarter. Archford Capital Strategies LLC now owns 5,135 shares of the technology company's stock valued at $583,000 after purchasing an additional 232 shares in the last quarter. Finally, National Pension Service grew its stake in PTC by 33.5% in the 2nd quarter. National Pension Service now owns 40,800 shares of the technology company's stock worth $4,635,000 after buying an additional 10,231 shares in the last quarter. 95.14% of the stock is currently owned by institutional investors.

PTC News Roundup

Here are the key news stories impacting PTC this week:

• Positive Sentiment: Schneider will pay $205 per PTC share, representing a premium of approximately 42% to PTC’s prior closing price. The offer provides investors with a defined cash value and is the primary catalyst behind the stock’s surge. Schneider Electric inks $22.6 billion takeover of software maker PTC
• Positive Sentiment: The transaction gives Schneider a broad portfolio of industrial software, including PTC’s product lifecycle management and digital-thread technologies. Schneider’s management characterized the combination as a way to accelerate industrial artificial intelligence and create a next-generation industrial technology platform. Schneider Electric CEO: $22.6B PTC Deal Creates Next Generation of Industrial AI
• Neutral Sentiment: PTC’s board has approved the proposed merger, but the transaction remains subject to shareholder and regulatory approvals and other customary closing conditions. The stock is trading below the $205 consideration, reflecting deal-completion risk and the time required to close.
• Neutral Sentiment: Analyst reactions were mixed but largely reflected the takeover price: Barclays reaffirmed an Equal Weight rating with a $205 target, while Loop Capital moved to Hold and KeyCorp downgraded the stock to Sector Weight. These changes suggest limited standalone upside beyond the offer price.
• Negative Sentiment: Investor-rights law firms, including Ademi, Halper Sadeh and Brodsky & Smith, announced investigations into whether the $205 price fairly values PTC and whether the board adequately protected shareholders. Such reviews do not necessarily block the deal but could create additional uncertainty or delay.
• Negative Sentiment: Some coverage characterized Schneider’s purchase price as aggressive, while Schneider shares declined on concerns about the transaction’s size and financing. For PTC shareholders, however, the immediate focus is the cash premium and probability of closing rather than PTC’s recent operating results.

About PTC

PTC Inc NASDAQ: PTC develops software designed to help manufacturers and other industrial companies create, manage, operate and service physical products. Its portfolio supports product lifecycle management, computer-aided design, application lifecycle management, service lifecycle management, industrial Internet of Things applications and augmented reality.

PTC's primary products include Creo for 3D computer-aided design and engineering, Windchill for product lifecycle management, Codebeamer for application lifecycle management, and Servigistics for service parts and service operations management.

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