Applied Industrial Technologies (NYSE:AIT) Stock Price Down 5.4% - Should You Sell?

Key Points

• Shares of Applied Industrial Technologies (NYSE:AIT) fell 5.4% to $257.88, with trading volume down 47% from the average session.
• Analysts remain generally positive, with a consensus target price of $287.86 and several upgrades to "buy" ratings despite the recent decline.
• The company reported quarterly earnings of $2.80 EPS, exceeding estimates and showing a year-over-year revenue increase of 5.5%.

Applied Industrial Technologies, Inc. (NYSE:AIT - Get Free Report) shares fell 5.4% during trading on Friday . The company traded as low as $257.91 and last traded at $257.88. 219,470 shares were traded during trading, a decline of 47% from the average session volume of 410,413 shares. The stock had previously closed at $272.58.

Wall Street Analyst Weigh In

AIT has been the subject of several research reports. Wall Street Zen upgraded shares of Applied Industrial Technologies from a "hold" rating to a "buy" rating in a research note on Saturday, July 26th. Robert W. Baird raised their price objective on Applied Industrial Technologies from $265.00 to $300.00 and gave the stock an "outperform" rating in a research report on Friday, August 15th. Oppenheimer lifted their price objective on Applied Industrial Technologies from $290.00 to $300.00 and gave the stock an "outperform" rating in a report on Friday, August 15th. Finally, Raymond James Financial cut Applied Industrial Technologies from an "outperform" rating to a "market perform" rating in a research report on Friday, August 15th. Six equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $287.86.

Applied Industrial Technologies Stock Performance

The company has a market capitalization of $9.90 billion, a P/E ratio of 25.91, a price-to-earnings-growth ratio of 3.21 and a beta of 0.94. The firm has a 50 day moving average price of $252.84 and a two-hundred day moving average price of $240.42. The company has a debt-to-equity ratio of 0.31, a quick ratio of 2.36 and a current ratio of 3.32.

Applied Industrial Technologies (NYSE:AIT - Get Free Report) last posted its earnings results on Thursday, August 14th. The industrial products company reported $2.80 EPS for the quarter, topping the consensus estimate of $2.60 by $0.20. Applied Industrial Technologies had a return on equity of 21.78% and a net margin of 8.61%.The business had revenue of $1.22 billion during the quarter, compared to the consensus estimate of $1.18 billion. During the same quarter last year, the company earned $2.64 EPS. Applied Industrial Technologies's revenue was up 5.5% on a year-over-year basis. Applied Industrial Technologies has set its FY 2026 guidance at 10.000-10.75 EPS. On average, research analysts expect that Applied Industrial Technologies, Inc. will post 9.9 earnings per share for the current fiscal year.

Applied Industrial Technologies Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, August 29th. Stockholders of record on Friday, August 15th will be issued a $0.46 dividend. The ex-dividend date of this dividend is Friday, August 15th. This represents a $1.84 annualized dividend and a dividend yield of 0.7%. Applied Industrial Technologies's dividend payout ratio is presently 18.18%.

Applied Industrial Technologies declared that its board has approved a share buyback plan on Thursday, May 1st that permits the company to repurchase 1,500,000 outstanding shares. This repurchase authorization permits the industrial products company to purchase shares of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's leadership believes its shares are undervalued.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Cerity Partners LLC increased its holdings in Applied Industrial Technologies by 47.8% during the 4th quarter. Cerity Partners LLC now owns 2,199 shares of the industrial products company's stock valued at $515,000 after purchasing an additional 711 shares in the last quarter. Townsquare Capital LLC grew its holdings in shares of Applied Industrial Technologies by 8.5% during the fourth quarter. Townsquare Capital LLC now owns 1,101 shares of the industrial products company's stock worth $264,000 after purchasing an additional 86 shares during the last quarter. Mariner LLC increased its stake in shares of Applied Industrial Technologies by 8.2% in the fourth quarter. Mariner LLC now owns 3,742 shares of the industrial products company's stock valued at $896,000 after buying an additional 283 shares in the last quarter. XTX Topco Ltd acquired a new stake in shares of Applied Industrial Technologies in the fourth quarter valued at $409,000. Finally, Jump Financial LLC bought a new position in shares of Applied Industrial Technologies in the fourth quarter valued at about $438,000. 93.52% of the stock is owned by institutional investors and hedge funds.

Applied Industrial Technologies Company Profile

Applied Industrial Technologies, Inc distributes industrial motion, power, control, and automation technology solutions in North America, Australia, New Zealand, and Singapore. It operates in two segments, Service Center Based Distribution, and Engineered Solutions. The company distributes bearings, power transmission products, engineered fluid power components and systems, specialty flow control solutions, advanced automation products, industrial rubber products, linear motion components, automation solutions, tools, safety products, oilfield supplies, and other industrial and maintenance supplies; and motors, belting, drives, couplings, pumps, hydraulic and pneumatic components, filtration supplies, valves, fittings, process instrumentation, actuators, and hoses, filtration supplies, as well as other related supplies for general operational needs of customers' machinery and equipment.