Principal Financial Group Inc. Sells 22,703 Shares of Emerson Electric Co. $EMR

Key Points

• Principal Financial Group trimmed its Emerson Electric stake by 3.5% in the first quarter, selling 22,703 shares and leaving it with 624,612 shares valued at about $81.8 million.
• Emerson Electric reported better-than-expected quarterly EPS of $1.54, though revenue of $4.56 billion slightly missed estimates; the company also reaffirmed guidance for FY2026 EPS of 6.45 to 6.55.
• The company paid a quarterly dividend of $0.555 per share, annualizing to $2.22 for a 1.6% yield, while analysts currently rate the stock a Moderate Buy with an average target price of $162.64.

Principal Financial Group Inc. reduced its stake in Emerson Electric Co. (NYSE:EMR - Free Report) by 3.5% in the 1st quarter, according to the company in its most recent filing with the SEC. The fund owned 624,612 shares of the industrial products company's stock after selling 22,703 shares during the quarter. Principal Financial Group Inc. owned approximately 0.11% of Emerson Electric worth $81,837,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also modified their holdings of the company. Basso Capital Management L.P. bought a new position in Emerson Electric in the 4th quarter worth $25,000. IFC & Insurance Marketing Inc. acquired a new stake in shares of Emerson Electric in the fourth quarter valued at about $27,000. Motiv8 Investments LLC bought a new position in shares of Emerson Electric in the fourth quarter worth about $27,000. Darwin Wealth Management LLC acquired a new position in shares of Emerson Electric during the 2nd quarter worth about $29,000. Finally, Ares Financial Consulting LLC bought a new stake in Emerson Electric during the 4th quarter valued at approximately $29,000. 74.30% of the stock is currently owned by institutional investors and hedge funds.

Emerson Electric Stock Up 2.1%

Shares of EMR stock opened at $139.08 on Friday. Emerson Electric Co. has a one year low of $122.64 and a one year high of $165.15. The company has a debt-to-equity ratio of 0.37, a current ratio of 0.87 and a quick ratio of 0.64. The stock has a fifty day moving average price of $140.38 and a 200 day moving average price of $141.83. The stock has a market cap of $77.90 billion, a P/E ratio of 32.12, a price-to-earnings-growth ratio of 2.18 and a beta of 1.25.

Emerson Electric (NYSE:EMR - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The industrial products company reported $1.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.53 by $0.01. Emerson Electric had a net margin of 13.35% and a return on equity of 17.18%. The firm had revenue of $4.56 billion for the quarter, compared to analyst estimates of $4.59 billion. During the same quarter in the previous year, the firm posted $1.48 EPS. The business's revenue for the quarter was up 2.9% on a year-over-year basis. Emerson Electric has set its FY 2026 guidance at 6.450-6.550 EPS and its Q3 2026 guidance at 1.650-1.700 EPS. Analysts predict that Emerson Electric Co. will post 6.49 earnings per share for the current year.

Emerson Electric Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 15th were issued a dividend of $0.555 per share. This represents a $2.22 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend was Friday, May 15th. Emerson Electric's payout ratio is presently 51.27%.

Wall Street Analyst Weigh In

Several research analysts have commented on EMR shares. Barclays lifted their price target on Emerson Electric from $140.00 to $144.00 and gave the stock an "equal weight" rating in a research report on Wednesday, May 6th. KeyCorp lowered their price objective on shares of Emerson Electric from $185.00 to $170.00 and set an "overweight" rating on the stock in a research note on Monday. Daiwa Securities Group cut their target price on shares of Emerson Electric from $177.00 to $156.00 and set an "outperform" rating for the company in a research note on Friday, May 15th. Jefferies Financial Group assumed coverage on shares of Emerson Electric in a report on Tuesday, March 31st. They issued a "buy" rating and a $175.00 price target for the company. Finally, BMO Capital Markets raised their price target on shares of Emerson Electric from $150.00 to $157.00 in a research report on Friday, May 8th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $162.64.

About Emerson Electric

Emerson Electric Co is a global technology and engineering company that designs and manufactures products and provides services for industrial, commercial and consumer markets. Founded in 1890, the company is headquartered in St. Louis, Missouri, and has built a long-standing presence in automation, control and climate-related technologies. Emerson's offerings are aimed at improving productivity, energy efficiency and reliability for a wide range of end markets.

Emerson operates through two principal platforms—Automation Solutions and Commercial & Residential Solutions—providing process automation systems, measurement and analytical instrumentation, valves and actuators, control software, and related aftermarket services, alongside products for heating, ventilation and refrigeration, residential and commercial climate controls, tools and storage solutions.

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