Emerson Electric (NYSE:EMR) Shares Gap Down - Should You Sell?

Key Points

• Emerson Electric's shares gapped down significantly, opening at $130.79 after closing at $140.57, with the last trading price at $125.59.
• Analysts have mixed ratings on the stock, with 12 buy ratings, 4 hold ratings, and 2 sell ratings, while the average price target is $142.28.
• The company reported earnings of $1.52 per share, beating estimates, although their revenue fell slightly short of expectations at $4.55 billion.

Emerson Electric Co. (NYSE:EMR - Get Free Report) shares gapped down before the market opened on Wednesday . The stock had previously closed at $140.57, but opened at $130.79. Emerson Electric shares last traded at $125.59, with a volume of 2,441,102 shares traded.

Analyst Ratings Changes

A number of equities analysts have commented on the company. Bank of America increased their target price on Emerson Electric from $130.00 to $155.00 and gave the company a "buy" rating in a report on Wednesday, July 2nd. Citigroup raised their price objective on shares of Emerson Electric from $146.00 to $165.00 and gave the stock a "buy" rating in a research report on Monday, July 14th. Barclays raised their price target on shares of Emerson Electric from $118.00 to $125.00 and gave the stock an "underweight" rating in a report on Wednesday, July 9th. JPMorgan Chase & Co. raised their price objective on Emerson Electric from $113.00 to $133.00 and gave the stock a "neutral" rating in a research report on Friday, May 16th. Finally, Wells Fargo & Company boosted their price objective on shares of Emerson Electric from $135.00 to $150.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 1st. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating, twelve have issued a buy rating and two have issued a strong buy rating to the company. According to MarketBeat, Emerson Electric presently has an average rating of "Moderate Buy" and an average price target of $142.28.

Emerson Electric Price Performance

The business's 50 day simple moving average is $134.52 and its 200-day simple moving average is $121.55. The stock has a market capitalization of $72.92 billion, a price-to-earnings ratio of 31.07, a price-to-earnings-growth ratio of 2.77 and a beta of 1.32. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.59 and a current ratio of 0.80.

Emerson Electric (NYSE:EMR - Get Free Report) last released its earnings results on Wednesday, August 6th. The industrial products company reported $1.52 earnings per share for the quarter, beating the consensus estimate of $1.51 by $0.01. The company had revenue of $4.55 billion for the quarter, compared to analysts' expectations of $4.60 billion. Emerson Electric had a return on equity of 13.22% and a net margin of 13.60%. The business's revenue for the quarter was up 3.9% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.43 EPS. Research analysts anticipate that Emerson Electric Co. will post 5.96 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Surendralal Lanca Karsanbhai sold 16,698 shares of the stock in a transaction that occurred on Thursday, May 8th. The stock was sold at an average price of $113.33, for a total transaction of $1,892,384.34. Following the completion of the sale, the chief executive officer directly owned 164,957 shares of the company's stock, valued at approximately $18,694,576.81. This represents a 9.19% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Clark Capital Management Group Inc. increased its stake in shares of Emerson Electric by 7.7% in the fourth quarter. Clark Capital Management Group Inc. now owns 6,042 shares of the industrial products company's stock worth $749,000 after purchasing an additional 434 shares in the last quarter. First Horizon Advisors Inc. lifted its position in Emerson Electric by 2.7% in the first quarter. First Horizon Advisors Inc. now owns 212,252 shares of the industrial products company's stock valued at $23,271,000 after purchasing an additional 5,504 shares during the period. APG Asset Management N.V. boosted its position in shares of Emerson Electric by 299.5% in the fourth quarter. APG Asset Management N.V. now owns 376,329 shares of the industrial products company's stock worth $45,040,000 after buying an additional 282,126 shares during the period. North Capital Inc. bought a new stake in Emerson Electric in the first quarter valued at $211,000. Finally, Zurich Insurance Group Ltd FI bought a new position in shares of Emerson Electric during the 4th quarter valued at about $3,003,000. Hedge funds and other institutional investors own 74.30% of the company's stock.

About Emerson Electric

Emerson Electric Co, a technology and software company, provides various solutions for customers in industrial, commercial, and consumer markets in the Americas, Asia, the Middle East, Africa, and Europe. It operates in six segments: Final Control, Control Systems & Software, Measurement & Analytical, AspenTech, Discrete Automation, and Safety & Productivity.

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