Applied Industrial Technologies (NYSE:AIT) Stock Price Expected to Rise, DA Davidson Analyst Says

Key Points

• DA Davidson raised Applied Industrial Technologies’ price target from $380 to $400 and reiterated a “buy” rating, implying 10.72% potential upside. Other analysts also lifted targets, with the stock carrying a consensus “Moderate Buy” rating.
• Quarterly results exceeded expectations: EPS came in at $3.17 versus the $2.92 consensus, while revenue reached $1.35 billion and increased 10.5% year over year. The company issued fiscal 2027 EPS guidance of $11.65 to $12.15.
• AIT shares opened at $361.27, near their 52-week high, and trade at a relatively elevated price-to-earnings ratio of 34.13. Institutional investors own 93.52% of the stock, while an insider recently sold shares.

Applied Industrial Technologies (NYSE:AIT - Get Free Report) had its price target increased by stock analysts at DA Davidson from $380.00 to $400.00 in a research note issued on Friday,Benzinga reports. The brokerage currently has a "buy" rating on the industrial products company's stock. DA Davidson's price target suggests a potential upside of 10.72% from the company's previous close.

Other equities analysts have also issued reports about the company. KeyCorp increased their price target on Applied Industrial Technologies from $375.00 to $420.00 and gave the company an "overweight" rating in a research note on Friday. Mizuho boosted their price objective on Applied Industrial Technologies from $355.00 to $400.00 and gave the stock an "outperform" rating in a research note on Friday. Weiss Ratings restated a "buy (b)" rating on shares of Applied Industrial Technologies in a report on Tuesday, July 21st. Wall Street Zen cut Applied Industrial Technologies from a "buy" rating to a "hold" rating in a research note on Saturday, May 2nd. Finally, Robert W. Baird lifted their target price on Applied Industrial Technologies from $317.00 to $400.00 and gave the stock an "outperform" rating in a report on Friday. Seven analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $364.29.

Applied Industrial Technologies Stock Up 1.0%

AIT stock opened at $361.27 on Friday. The firm's 50-day moving average is $336.11 and its two-hundred day moving average is $302.91. The company has a market capitalization of $13.35 billion, a price-to-earnings ratio of 34.13, a price-to-earnings-growth ratio of 3.04 and a beta of 0.84. Applied Industrial Technologies has a 52 week low of $238.34 and a 52 week high of $374.80. The company has a current ratio of 2.95, a quick ratio of 1.97 and a debt-to-equity ratio of 0.19.

Applied Industrial Technologies (NYSE:AIT - Get Free Report) last posted its quarterly earnings data on Thursday, August 13th. The industrial products company reported $3.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.92 by $0.25. Applied Industrial Technologies had a net margin of 8.34% and a return on equity of 21.64%. The business had revenue of $1.35 billion during the quarter, compared to analysts' expectations of $1.29 billion. During the same period last year, the firm posted $2.80 earnings per share. The business's revenue was up 10.5% on a year-over-year basis. Applied Industrial Technologies has set its FY 2027 guidance at 11.650-12.150 EPS. On average, analysts forecast that Applied Industrial Technologies will post 10.71 earnings per share for the current fiscal year.

Insider Buying and Selling at Applied Industrial Technologies

In other news, Director Madhuri A. Andrews sold 3,845 shares of the firm's stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $329.89, for a total transaction of $1,268,427.05. Following the completion of the sale, the director directly owned 4,951 shares of the company's stock, valued at $1,633,285.39. This trade represents a 43.71% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 1.60% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Applied Industrial Technologies

Several hedge funds have recently modified their holdings of the stock. BlackRock Inc. purchased a new position in Applied Industrial Technologies in the 2nd quarter worth about $1,336,805,000. First Trust Advisors LP lifted its stake in Applied Industrial Technologies by 34.3% during the first quarter. First Trust Advisors LP now owns 978,840 shares of the industrial products company's stock valued at $259,706,000 after buying an additional 249,961 shares in the last quarter. Capital International Investors boosted its holdings in shares of Applied Industrial Technologies by 25.4% in the fourth quarter. Capital International Investors now owns 962,925 shares of the industrial products company's stock worth $247,250,000 after buying an additional 195,043 shares during the period. Wellington Management Group LLP boosted its holdings in shares of Applied Industrial Technologies by 0.9% in the fourth quarter. Wellington Management Group LLP now owns 776,394 shares of the industrial products company's stock worth $199,355,000 after buying an additional 6,953 shares during the period. Finally, Dimensional Fund Advisors LP increased its position in shares of Applied Industrial Technologies by 0.5% in the fourth quarter. Dimensional Fund Advisors LP now owns 723,700 shares of the industrial products company's stock worth $185,833,000 after acquiring an additional 3,348 shares in the last quarter. 93.52% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Applied Industrial Technologies

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

• Positive Sentiment: Quarterly earnings and revenue beat estimates: Fiscal Q4 EPS was $3.17, ahead of the $2.92 consensus and up from $2.80 a year earlier. Sales increased approximately 10.4% year over year to about $1.4 billion, exceeding expectations of roughly $1.29 billion. The strong results help explain the stock’s increase. Applied Industrial Technologies Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Analysts raised their targets and ratings: Mizuho increased its target from $355 to $400 and assigned an “outperform” rating. Robert W. Baird also raised its target from $317 to $400 and maintained an “outperform” view, signaling increased confidence in AIT’s earnings outlook. Mizuho Raises Applied Industrial Technologies Price Target
• Positive Sentiment: Fiscal 2027 outlook supports continued growth: AIT projected EPS of $11.65 to $12.15, with a midpoint above the $11.82 analyst consensus, and revenue of $5.2 billion to $5.3 billion. The company also increased its intermediate financial targets. Applied Industrial Technologies Fiscal 2026 Results and Fiscal 2027 Guidance
• Neutral Sentiment: Valuation remains a consideration: AIT trades near its 52-week high with a price-to-earnings ratio above 33, meaning investors may already be pricing in part of the expected earnings growth. Further gains could depend on the company delivering on its fiscal 2027 guidance.

Applied Industrial Technologies Company Profile

Applied Industrial Technologies, listed on the New York Stock Exchange under the symbol AIT, is a leading distributor of industrial products and services. The company offers a comprehensive range of bearings, power transmission components, fluid power products, industrial rubber products, and automation solutions. Through its network of distribution centers and branch locations, Applied Industrial Technologies serves diverse end markets including manufacturing, oil and gas, mining, food and beverage, and wastewater treatment.

Founded in 1923 and headquartered in Cleveland, Ohio, Applied Industrial Technologies has grown through a combination of organic expansion and strategic acquisitions.

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