Fortive Corporation (NYSE:FTV) Sees Significant Increase in Short Interest

Key Points

• Fortive Corporation experienced a 57.9% increase in short interest for July, rising from 5,960,000 shares to 9,410,000 shares.
• The company's recent quarterly earnings report revealed $0.58 EPS, missing estimates by $0.02, with a revenue of $1.52 billion, which also fell short of analyst expectations.
• Fortive's Board has authorized a stock buyback plan to repurchase 15,630,000 shares, indicating confidence in the undervaluation of its stock.

Fortive Corporation (NYSE:FTV - Get Free Report) saw a significant growth in short interest in the month of July. As of July 15th, there was short interest totaling 9,410,000 shares, agrowthof57.9% from the June 30th total of 5,960,000 shares. Based on an average daily trading volume, of 3,560,000 shares, the days-to-cover ratio is presently 2.6 days. Currently,2.8% of the shares of the stock are short sold. Currently,2.8% of the shares of the stock are short sold. Based on an average daily trading volume, of 3,560,000 shares, the days-to-cover ratio is presently 2.6 days.

Fortive Price Performance

NYSE FTV traded down $0.01 on Thursday, reaching $47.59. 624,911 shares of the stock traded hands, compared to its average volume of 3,244,591. The firm's fifty day simple moving average is $59.79 and its 200 day simple moving average is $68.93. The company has a quick ratio of 0.82, a current ratio of 0.98 and a debt-to-equity ratio of 0.28. The company has a market cap of $16.10 billion, a price-to-earnings ratio of 21.41, a P/E/G ratio of 3.07 and a beta of 1.08. Fortive has a 12 month low of $46.35 and a 12 month high of $83.32.

Fortive (NYSE:FTV - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The technology company reported $0.58 earnings per share for the quarter, missing the consensus estimate of $0.60 by ($0.02). The company had revenue of $1.52 billion during the quarter, compared to analyst estimates of $1.54 billion. Fortive had a net margin of 13.62% and a return on equity of 11.96%. The firm's quarterly revenue was down .4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.93 EPS. As a group, research analysts predict that Fortive will post 4.05 EPS for the current fiscal year.

Fortive announced that its Board of Directors has authorized a stock repurchase plan on Tuesday, May 27th that allows the company to buyback 15,630,000 outstanding shares. This buyback authorization allows the technology company to repurchase shares of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board believes its shares are undervalued.

Insider Activity

In related news, CEO James A. Lico sold 175,000 shares of Fortive stock in a transaction on Thursday, May 15th. The shares were sold at an average price of $72.40, for a total transaction of $12,670,000.00. Following the transaction, the chief executive officer owned 428,585 shares in the company, valued at approximately $31,029,554. The trade was a 28.99% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP Peter C. Underwood sold 14,327 shares of the company's stock in a transaction that occurred on Monday, May 12th. The shares were sold at an average price of $73.88, for a total value of $1,058,478.76. Following the completion of the transaction, the senior vice president directly owned 51,750 shares in the company, valued at approximately $3,823,290. The trade was a 21.68% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 0.92% of the company's stock.

Hedge Funds Weigh In On Fortive

A number of hedge funds have recently modified their holdings of the stock. True Wealth Design LLC boosted its holdings in Fortive by 815.4% in the second quarter. True Wealth Design LLC now owns 476 shares of the technology company's stock valued at $25,000 after acquiring an additional 424 shares during the last quarter. Parvin Asset Management LLC bought a new stake in Fortive in the 4th quarter valued at about $26,000. American National Bank & Trust bought a new stake in shares of Fortive during the 1st quarter worth approximately $26,000. Accent Capital Management LLC bought a new position in shares of Fortive in the first quarter worth about $26,000. Finally, Global X Japan Co. Ltd. grew its holdings in shares of Fortive by 114.2% during the first quarter. Global X Japan Co. Ltd. now owns 377 shares of the technology company's stock worth $28,000 after purchasing an additional 201 shares during the last quarter. 94.94% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several brokerages recently commented on FTV. BNP Paribas reissued a "neutral" rating on shares of Fortive in a report on Thursday, June 12th. Royal Bank Of Canada lowered their target price on Fortive from $58.00 to $56.00 and set a "sector perform" rating for the company in a report on Thursday, July 31st. Citigroup dropped their price objective on shares of Fortive from $84.00 to $69.00 and set a "neutral" rating for the company in a research note on Monday, April 14th. Robert W. Baird reduced their target price on shares of Fortive from $88.00 to $82.00 and set an "outperform" rating on the stock in a report on Wednesday, May 7th. Finally, Truist Financial reissued a "hold" rating and set a $55.00 price objective (down from $60.00) on shares of Fortive in a report on Thursday, July 31st. Thirteen research analysts have rated the stock with a hold rating and six have given a buy rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $65.86.

Fortive Company Profile

Fortive Corporation designs, develops, manufactures, and services professional and engineered products, software, and services in the United States, China, and internationally. It operates in three segments: Intelligent Operating Solutions, Precision Technologies, and Advanced Healthcare Solutions. The Intelligent Operating Solutions segment provides advanced instrumentation, software, and services, including electrical test and measurement, facility and asset lifecycle software applications, and connected worker safety and compliance solutions for manufacturing, process industries, healthcare, utilities and power, communications and electronics, and other industries.

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