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

Key Points

• Emerson Electric's stock gapped down from a closing price of $135.66 to an opening price of $131.58 prior to trading on Tuesday, with the last trade reported at $130.65.
• A recent assessment by various analysts resulted in upgrades for Emerson Electric, with Barclays, Wells Fargo, and Bank of America raising their price targets significantly to ranges between $127.00 and $155.00.
• The company reported earnings of $1.52 per share for the last quarter, slightly surpassing analyst expectations, while quarterly revenue came in at $4.55 billion, just below forecasts.

Shares of Emerson Electric Co. (NYSE:EMR - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $135.66, but opened at $131.58. Emerson Electric shares last traded at $130.65, with a volume of 1,102,858 shares trading hands.

Analyst Upgrades and Downgrades

EMR has been the subject of several research analyst reports. Citigroup boosted their target price on Emerson Electric from $146.00 to $165.00 and gave the stock a "buy" rating in a research note on Monday, July 14th. KeyCorp upped their target price on Emerson Electric from $150.00 to $155.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 1st. Bank of America lifted their price objective on Emerson Electric from $130.00 to $155.00 and gave the stock a "buy" rating in a report on Wednesday, July 2nd. Wells Fargo & Company lifted their price target on Emerson Electric from $135.00 to $150.00 and gave the company an "overweight" rating in a research report on Tuesday, July 1st. Finally, TD Cowen upgraded Emerson Electric to a "strong-buy" rating in a research report on Tuesday, July 8th. Two analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Emerson Electric currently has an average rating of "Moderate Buy" and a consensus price target of $142.39.

Emerson Electric Stock Performance

The company has a market cap of $74.49 billion, a PE ratio of 28.46, a PEG ratio of 2.50 and a beta of 1.30. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.85 and a quick ratio of 0.63. The business has a 50-day moving average of $136.63 and a 200 day moving average of $123.29.

Emerson Electric (NYSE:EMR - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The industrial products company reported $1.52 EPS for the quarter, topping analysts' consensus estimates of $1.51 by $0.01. Emerson Electric had a return on equity of 14.34% and a net margin of 14.92%.The business had revenue of $4.55 billion during the quarter, compared to analysts' expectations of $4.60 billion. During the same quarter in the prior year, the business posted $1.43 earnings per share. The business's quarterly revenue was up 3.9% on a year-over-year basis. Equities research analysts anticipate that Emerson Electric Co. will post 5.96 EPS for the current fiscal year.

Emerson Electric Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 10th. Shareholders of record on Friday, August 15th were issued a dividend of $0.5275 per share. This represents a $2.11 annualized dividend and a yield of 1.6%. The ex-dividend date was Friday, August 15th. Emerson Electric's dividend payout ratio (DPR) is presently 45.38%.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Orion Capital Management LLC purchased a new position in Emerson Electric during the 4th quarter worth $25,000. Vega Investment Solutions acquired a new stake in Emerson Electric during the 4th quarter worth about $27,000. Darwin Wealth Management LLC acquired a new stake in Emerson Electric during the 2nd quarter worth about $29,000. Saudi Central Bank acquired a new stake in Emerson Electric during the 1st quarter worth about $25,000. Finally, Ameriflex Group Inc. acquired a new stake in Emerson Electric during the 4th quarter worth about $30,000. 74.30% of the stock is currently owned by hedge funds and other institutional investors.

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.