Emerson Electric Co. $EMR Stock: Aberdeen Group plc Raises Stake

Key Points

• Aberdeen Group increased its Emerson Electric stake by 47.8% in the third quarter, adding 294,490 shares to hold 911,129 shares valued at about $141.3 million.
• Analysts give Emerson a consensus “Moderate Buy” rating, with an average price target of $175.58; 18 analysts rate it Buy or Strong Buy, seven Hold, and one Sell.
• Emerson narrowly beat quarterly earnings and revenue estimates, and raised its quarterly dividend from $0.555 to $0.595 per share, equivalent to an annualized yield of about 1.4%.

Aberdeen Group plc lifted its holdings in shares of Emerson Electric Co. (NYSE:EMR - Free Report) by 47.8% in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 911,129 shares of the industrial products company's stock after purchasing an additional 294,490 shares during the quarter. Aberdeen Group plc owned 0.16% of Emerson Electric worth $141,316,000 at the end of the most recent quarter.

Several other institutional investors also recently modified their holdings of the stock. BlackRock Inc. purchased a new position in shares of Emerson Electric during the 2nd quarter valued at about $6,193,425,000. Bank of America Corp DE bought a new stake in Emerson Electric in the 2nd quarter worth approximately $2,629,146,000. Bank of New York Mellon Corp purchased a new stake in Emerson Electric in the second quarter worth approximately $659,000,000. Legal & General Group Plc purchased a new stake in Emerson Electric in the second quarter worth approximately $613,846,000. Finally, Jupiter Topco LLC bought a new position in Emerson Electric during the second quarter valued at approximately $260,485,000. 74.30% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of research analysts have commented on the stock. Evercore reduced their price target on shares of Emerson Electric from $190.00 to $185.00 and set an "outperform" rating on the stock in a research report on Monday, August 31st. Wells Fargo & Company boosted their price objective on shares of Emerson Electric from $177.00 to $180.00 and gave the stock an "overweight" rating in a report on Thursday, November 5th. Royal Bank Of Canada upped their price objective on shares of Emerson Electric from $188.00 to $196.00 and gave the company an "outperform" rating in a research note on Thursday, November 5th. HSBC upped their price objective on shares of Emerson Electric from $170.00 to $180.00 in a research note on Thursday, August 6th. Finally, Morgan Stanley reduced their target price on shares of Emerson Electric from $145.00 to $140.00 and set an "underweight" rating on the stock in a report on Tuesday, November 3rd. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $175.58.

Emerson Electric Price Performance

Shares of Emerson Electric stock opened at $166.26 on Friday. The firm has a market cap of $91.21 billion, a PE ratio of 34.78, a price-to-earnings-growth ratio of 2.34 and a beta of 1.23. Emerson Electric Co. has a 12-month low of $122.64 and a 12-month high of $172.00. The company has a quick ratio of 0.70, a current ratio of 0.94 and a debt-to-equity ratio of 0.36. The company's fifty day simple moving average is $159.58 and its two-hundred day simple moving average is $148.08.

Emerson Electric (NYSE:EMR - Get Free Report) last issued its quarterly earnings data on Wednesday, November 4th. The industrial products company reported $1.86 EPS for the quarter, beating the consensus estimate of $1.85 by $0.01. The firm had revenue of $5.20 billion during the quarter, compared to the consensus estimate of $5.11 billion. Emerson Electric had a net margin of 14.15% and a return on equity of 18.08%. The company's quarterly revenue was up .0% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.62 earnings per share. As a group, equities analysts expect that Emerson Electric Co. will post 7.37 EPS for the current year.

Emerson Electric Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Friday, November 13th will be issued a dividend of $0.5950 per share. The ex-dividend date is Friday, November 13th. This represents a $2.38 dividend on an annualized basis and a yield of 1.4%. This is a boost from Emerson Electric's previous quarterly dividend of $0.5550. Emerson Electric's dividend payout ratio (DPR) is presently 46.44%.

About Emerson Electric

Emerson Electric Co. is a global technology and engineering company focused on automation. It develops products and systems that help industrial and commercial customers monitor and control operations, including measurement instruments, control systems, valves, actuators, and industrial software. The company serves customers across industries and regions worldwide. Its portfolio includes technologies for process and factory automation, as well as software used to design, operate, and optimize industrial facilities.

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