Caxton Associates LLP Acquires New Shares in Rockwell Automation, Inc. $ROK

Key Points

• Caxton Associates LLP opened a new position in Rockwell Automation during the first quarter, buying 4,738 shares valued at about $1.7 million.
• Rockwell Automation reported better-than-expected quarterly results, with EPS of $3.30 versus estimates of $2.88 and revenue of $2.24 billion, up 11.9% from a year earlier.
• The company authorized a $1 billion stock buyback and announced a quarterly dividend of $1.38 per share, while analysts maintain a consensus Moderate Buy rating with an average price target of $469.33.

Caxton Associates LLP acquired a new position in shares of Rockwell Automation, Inc. (NYSE:ROK - Free Report) in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund acquired 4,738 shares of the industrial products company's stock, valued at approximately $1,700,000.

A number of other institutional investors also recently bought and sold shares of the company. MV Capital Management Inc. acquired a new position in shares of Rockwell Automation during the 4th quarter worth $28,000. Manchester Capital Management LLC grew its stake in Rockwell Automation by 97.5% in the 4th quarter. Manchester Capital Management LLC now owns 79 shares of the industrial products company's stock valued at $31,000 after acquiring an additional 39 shares during the last quarter. Cassaday & Co Wealth Management LLC acquired a new stake in Rockwell Automation in the 1st quarter valued at about $31,000. First Horizon Corp purchased a new position in Rockwell Automation during the 4th quarter valued at about $32,000. Finally, BOK Financial Private Wealth Inc. purchased a new position in Rockwell Automation during the 4th quarter valued at about $33,000. 75.75% of the stock is currently owned by hedge funds and other institutional investors.

Rockwell Automation Trading Up 0.4%

Shares of ROK stock opened at $462.55 on Friday. The company has a market capitalization of $51.47 billion, a price-to-earnings ratio of 48.08, a PEG ratio of 2.95 and a beta of 1.54. The company has a current ratio of 1.09, a quick ratio of 0.76 and a debt-to-equity ratio of 0.72. The firm has a 50-day moving average price of $461.94 and a 200 day moving average price of $422.04. Rockwell Automation, Inc. has a twelve month low of $305.44 and a twelve month high of $497.36.

Rockwell Automation (NYSE:ROK - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The industrial products company reported $3.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.88 by $0.42. The company had revenue of $2.24 billion for the quarter, compared to analysts' expectations of $2.16 billion. Rockwell Automation had a net margin of 12.36% and a return on equity of 37.54%. The firm's revenue for the quarter was up 11.9% compared to the same quarter last year. During the same period last year, the company earned $2.45 EPS. Rockwell Automation has set its FY 2026 guidance at 12.500-13.100 EPS. Research analysts forecast that Rockwell Automation, Inc. will post 13.06 earnings per share for the current fiscal year.

Rockwell Automation declared that its Board of Directors has authorized a stock buyback program on Tuesday, June 9th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the industrial products company to repurchase up to 2% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board of directors believes its stock is undervalued.

Rockwell Automation Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 17th will be given a dividend of $1.38 per share. The ex-dividend date is Monday, August 17th. This represents a $5.52 dividend on an annualized basis and a yield of 1.2%. Rockwell Automation's dividend payout ratio (DPR) is 57.38%.

Insider Activity

In other Rockwell Automation news, SVP Matthew W. Fordenwalt sold 377 shares of Rockwell Automation stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $460.51, for a total value of $173,612.27. Following the completion of the sale, the senior vice president directly owned 4,437 shares of the company's stock, valued at approximately $2,043,282.87. The trade was a 7.83% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Christopher Nardecchia sold 2,538 shares of the business's stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $446.43, for a total value of $1,133,039.34. Following the completion of the transaction, the senior vice president owned 14,232 shares of the company's stock, valued at $6,353,591.76. This trade represents a 15.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 9,361 shares of company stock valued at $4,189,886 in the last 90 days. Insiders own 0.76% of the company's stock.

Wall Street Analysts Forecast Growth

ROK has been the subject of a number of research reports. BNP Paribas Exane lifted their target price on shares of Rockwell Automation from $495.00 to $515.00 in a research report on Wednesday, May 6th. DA Davidson began coverage on shares of Rockwell Automation in a research report on Tuesday, June 16th. They issued a "neutral" rating and a $500.00 price target on the stock. Citigroup raised their price objective on shares of Rockwell Automation from $500.00 to $555.00 and gave the stock a "buy" rating in a research note on Monday, July 13th. Mizuho set a $445.00 price objective on Rockwell Automation in a research report on Wednesday, May 6th. Finally, Sanford C. Bernstein began coverage on Rockwell Automation in a research note on Tuesday, June 9th. They issued a "market perform" rating and a $501.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and eleven have issued a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $469.33.

Rockwell Automation Profile

Rockwell Automation is a global industrial automation and digital transformation company headquartered in Milwaukee, Wisconsin. The firm designs, manufactures and supports control systems, industrial control hardware and software, and related services that help manufacturers and industrial operators automate processes, improve productivity and enable data-driven decision making. Rockwell traces its heritage to the Allen-Bradley and Rockwell automation businesses and positions itself as a provider of integrated automation solutions across discrete and process industries.

The company's product portfolio includes programmable logic controllers (PLCs), human-machine interfaces (HMIs), variable frequency drives, sensors, safety components and other industrial control hardware, often marketed under the Allen-Bradley brand.

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