Atkore (NYSE:ATKR) Shares Gap Down - Here's Why

Key Points

• Atkore Inc. (NYSE:ATKR) shares experienced a significant gap down, opening at $70.34 after closing at $76.55, with the latest trading price at $60.35.
• Despite the recent drop, several brokerage firms have a positive outlook on Atkore, with price targets ranging from $70.00 to $80.00 and an average rating of "Moderate Buy."
• Atkore recently declared a quarterly dividend of $0.33 per share, with a current yield of 2.3% and a payout ratio of 25.38%.

Atkore Inc. (NYSE:ATKR - Get Free Report) shares gapped down before the market opened on Tuesday . The stock had previously closed at $76.55, but opened at $70.34. Atkore shares last traded at $60.35, with a volume of 136,382 shares traded.

Analysts Set New Price Targets

Several equities research analysts have commented on ATKR shares. Wall Street Zen upgraded Atkore from a "hold" rating to a "buy" rating in a research report on Monday, May 12th. KeyCorp reissued a "sector weight" rating on shares of Atkore in a report on Wednesday. Citigroup reaffirmed a "neutral" rating and issued a $80.00 price objective (up previously from $70.00) on shares of Atkore in a report on Monday, June 9th. Royal Bank Of Canada upped their price objective on shares of Atkore from $65.00 to $70.00 and gave the stock a "sector perform" rating in a research report on Wednesday, May 7th. Finally, Roth Capital set a $78.00 target price on Atkore and gave the company a "buy" rating in a research report on Wednesday, May 7th. Five analysts have rated the stock with a hold rating and three have issued a buy rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $79.57.

Atkore Price Performance

The company has a 50-day moving average of $70.88 and a 200 day moving average of $67.34. The company has a quick ratio of 1.98, a current ratio of 3.09 and a debt-to-equity ratio of 0.52. The stock has a market capitalization of $1.85 billion, a PE ratio of 17.62 and a beta of 2.10.

Atkore (NYSE:ATKR - Get Free Report) last announced its earnings results on Tuesday, May 6th. The company reported $2.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.52 by $0.52. The company had revenue of $701.73 million for the quarter, compared to analysts' expectations of $690.83 million. Atkore had a net margin of 3.89% and a return on equity of 16.16%. The firm's quarterly revenue was down 11.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $4.08 EPS. Sell-side analysts predict that Atkore Inc. will post 5.79 EPS for the current year.

Atkore Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 29th. Shareholders of record on Tuesday, August 19th will be paid a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend is Tuesday, August 19th. Atkore's dividend payout ratio (DPR) is 42.31%.

Institutional Investors Weigh In On Atkore

Large investors have recently made changes to their positions in the stock. First Trust Advisors LP boosted its stake in Atkore by 195.6% during the fourth quarter. First Trust Advisors LP now owns 1,174,464 shares of the company's stock worth $98,009,000 after buying an additional 777,113 shares during the last quarter. Gates Capital Management Inc. raised its holdings in shares of Atkore by 25.2% during the 1st quarter. Gates Capital Management Inc. now owns 3,265,061 shares of the company's stock worth $195,871,000 after acquiring an additional 657,707 shares during the period. Wellington Management Group LLP boosted its position in shares of Atkore by 549.9% during the 4th quarter. Wellington Management Group LLP now owns 607,041 shares of the company's stock valued at $50,658,000 after acquiring an additional 513,631 shares during the last quarter. Pacer Advisors Inc. grew its holdings in shares of Atkore by 43,389.8% in the first quarter. Pacer Advisors Inc. now owns 365,749 shares of the company's stock valued at $21,941,000 after purchasing an additional 364,908 shares during the period. Finally, T. Rowe Price Investment Management Inc. purchased a new stake in shares of Atkore in the fourth quarter valued at about $21,369,000.

About Atkore

Atkore Inc engages in the manufacture and sale of electrical, mechanical, safety, and infrastructure products and solutions in the United States and internationally. The company offers conduits, cables, and installation accessories. It also designs and manufactures protection and reliability solutions for critical infrastructure, such as metal framing, mechanical pipe, perimeter security, and cable management.