Hsbc Holdings PLC Purchases 66,302 Shares of Rockwell Automation, Inc. $ROK

Key Points

• HSBC Holdings increased its Rockwell Automation stake by 16.3%, purchasing 66,302 shares to bring its holdings to 472,888 shares worth approximately $234 million, or 0.43% of the company.
• Institutional investors own approximately 75.75% of Rockwell Automation, while several other funds also increased their positions during the second quarter.
• Rockwell’s latest quarter exceeded expectations, with $3.49 in EPS and $2.31 billion in revenue, up 7.9% year over year. However, analysts maintain a consensus “Hold” rating with an average price target of $469.14, while insiders have sold shares recently.

Hsbc Holdings PLC grew its holdings in Rockwell Automation, Inc. (NYSE:ROK - Free Report) by 16.3% during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 472,888 shares of the industrial products company's stock after purchasing an additional 66,302 shares during the period. Hsbc Holdings PLC owned about 0.43% of Rockwell Automation worth $233,964,000 at the end of the most recent quarter.

A number of other institutional investors have also made changes to their positions in the business. Wellington Management Group LLP increased its stake in Rockwell Automation by 6.4% in the 2nd quarter. Wellington Management Group LLP now owns 3,020 shares of the industrial products company's stock valued at $1,495,000 after buying an additional 181 shares during the last quarter. Lombard Odier Asset Management Europe Ltd lifted its position in Rockwell Automation by 20.4% during the 2nd quarter. Lombard Odier Asset Management Europe Ltd now owns 43,582 shares of the industrial products company's stock worth $21,577,000 after buying an additional 7,371 shares in the last quarter. Archer Investment Corp acquired a new position in shares of Rockwell Automation during the 2nd quarter worth about $72,000. Rakuten Investment Management Inc. boosted its stake in shares of Rockwell Automation by 9.5% during the 2nd quarter. Rakuten Investment Management Inc. now owns 18,263 shares of the industrial products company's stock worth $8,809,000 after buying an additional 1,584 shares during the last quarter. Finally, Empowered Funds LLC grew its holdings in shares of Rockwell Automation by 159.8% in the 2nd quarter. Empowered Funds LLC now owns 25,938 shares of the industrial products company's stock valued at $12,841,000 after acquiring an additional 15,954 shares in the last quarter. Institutional investors own 75.75% of the company's stock.

Insider Activity

In related news, Director Patricia A. Watson sold 1,100 shares of the company's stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $431.43, for a total value of $474,573.00. Following the transaction, the director owned 6,385 shares in the company, valued at approximately $2,754,680.55. This represents a 14.70% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Matheus De A. G. Viera Bulho sold 467 shares of the firm's stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $426.96, for a total transaction of $199,390.32. Following the sale, the senior vice president owned 1,267 shares of the company's stock, valued at $540,958.32. This trade represents a 26.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 2,557 shares of company stock valued at $1,098,256 over the last ninety days. 0.76% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the company. Argus boosted their price target on Rockwell Automation from $465.00 to $530.00 and gave the stock a "buy" rating in a research report on Wednesday, June 24th. Weiss Ratings reissued a "buy (b-)" rating on shares of Rockwell Automation in a research note on Thursday, June 18th. Sanford C. Bernstein boosted their target price on shares of Rockwell Automation from $501.00 to $514.00 and gave the stock a "market perform" rating in a report on Friday, August 14th. DA Davidson dropped their price target on shares of Rockwell Automation from $500.00 to $490.00 and set a "neutral" rating on the stock in a research report on Friday, August 21st. Finally, Robert W. Baird set a $514.00 price target on shares of Rockwell Automation in a research note on Wednesday, August 5th. Nine investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $469.14.

Key Rockwell Automation News

Here are the key news stories impacting Rockwell Automation this week:

• Positive Sentiment: Analysts raised most forward EPS estimates. Zacks Research increased its forecasts for Q4 2026, Q2-Q4 2027, FY2026, FY2027, Q3 2028 and FY2028. The firm now expects $13.17 EPS for FY2026, $14.39 for FY2027 and $16.78 for FY2028, suggesting improving expectations for Rockwell Automation’s longer-term earnings growth.
• Positive Sentiment: Morgan Stanley maintained a Buy rating. The continued bullish view from a major brokerage provides supportive sentiment for ROK, although the broader analyst consensus remains Hold. Morgan Stanley Remains a Buy on Rockwell Automation
• Positive Sentiment: Recent operating results and capital returns remain supportive. Rockwell’s latest quarter exceeded EPS and revenue expectations, with revenue up 7.9% year over year. The company also has authorization for up to $1 billion in share repurchases and pays a quarterly dividend, which may enhance shareholder returns.
• Neutral Sentiment: The investment case is constructive but not uniformly bullish. Zacks maintained a Hold rating, and the consensus target of approximately $469.14 implies potential upside but also reflects caution at ROK’s current valuation. A recent comparison of Rockwell with other Internet of Things companies may influence sector sentiment but provides no clear company-specific catalyst. Q2 earnings highlights: Rockwell Automation vs. Internet of Things stocks
• Negative Sentiment: One near-term EPS estimate was trimmed. Zacks lowered its Q1 2027 forecast to $2.93 from $2.97, partially offsetting the broader upward revisions.
• Negative Sentiment: An executive sold shares. SVP Matheus Bulho sold 400 shares for about $168,056 after selling 467 shares earlier. Because the transactions were conducted under a pre-arranged Rule 10b5-1 plan, they are a limited bearish signal. Rockwell Automation insider share sale

Rockwell Automation Price Performance

NYSE:ROK opened at $434.18 on Monday. Rockwell Automation, Inc. has a 12-month low of $332.71 and a 12-month high of $497.36. The firm has a market capitalization of $48.22 billion, a price-to-earnings ratio of 40.69, a P/E/G ratio of 2.53 and a beta of 1.52. The stock's 50 day moving average price is $453.91 and its two-hundred day moving average price is $428.42. The company has a quick ratio of 0.74, a current ratio of 1.08 and a debt-to-equity ratio of 0.74.

Rockwell Automation (NYSE:ROK - Get Free Report) last issued its earnings results on Tuesday, August 4th. The industrial products company reported $3.49 EPS for the quarter, topping the consensus estimate of $3.38 by $0.11. The company had revenue of $2.31 billion during the quarter, compared to the consensus estimate of $2.24 billion. Rockwell Automation had a return on equity of 39.83% and a net margin of 13.39%.The firm's revenue for the quarter was up 7.9% compared to the same quarter last year. During the same period in the previous year, the company posted $2.82 EPS. Rockwell Automation has set its FY 2026 guidance at 13.000-13.300 EPS. On average, analysts anticipate that Rockwell Automation, Inc. will post 13.23 earnings per share for the current year.

Rockwell Automation declared that its board has approved a share repurchase program on Tuesday, June 9th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the industrial products company to repurchase up to 2% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's board believes its shares are undervalued.

Rockwell Automation Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 17th will be issued a $1.38 dividend. This represents a $5.52 annualized dividend and a dividend yield of 1.3%. The ex-dividend date is Monday, August 17th. Rockwell Automation's payout ratio is currently 51.73%.

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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