Fortive (NYSE:FTV) Rating Increased to Hold at Zacks Research

Key Points

• Fortive has been upgraded by Zacks Research from a "strong sell" to a "hold" rating, reflecting a shift in analyst sentiment towards the company's stock.
• Financial results showed a missed earnings estimate of $0.58 per share compared to the consensus of $0.60, alongside a slight year-over-year revenue decline.
• The company announced a stock repurchase plan allowing it to buy back 15.6 million shares, indicating management's belief that the stock is undervalued.

Zacks Research upgraded shares of Fortive (NYSE:FTV - Free Report) from a strong sell rating to a hold rating in a research report sent to investors on Monday morning,Zacks.com reports.

Several other equities analysts also recently commented on the stock. Barclays set a $54.00 price target on shares of Fortive and gave the stock an "equal weight" rating in a research note on Thursday, August 14th. JPMorgan Chase & Co. cut their price target on shares of Fortive from $87.00 to $65.00 and set an "overweight" rating for the company in a report on Wednesday, July 2nd. Melius Research upgraded shares of Fortive to a "hold" rating in a research report on Tuesday, July 22nd. Raymond James Financial cut their price target on shares of Fortive from $90.00 to $65.00 and set an "outperform" rating on the stock in a research note on Tuesday, July 1st. Finally, Morgan Stanley reaffirmed an "equal weight" rating and set a $50.00 price target (down previously from $90.00) on shares of Fortive in a research note on Tuesday, September 2nd. Four analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company. Based on data from MarketBeat.com, Fortive presently has a consensus rating of "Hold" and a consensus price target of $62.79.

Fortive Stock Down 0.4%

Shares of FTV traded down $0.21 during midday trading on Monday, hitting $48.62. 9,949,870 shares of the company's stock traded hands, compared to its average volume of 3,505,540. Fortive has a 1 year low of $46.34 and a 1 year high of $83.32. The firm's fifty day moving average is $48.76 and its 200-day moving average is $61.71. The company has a current ratio of 0.98, a quick ratio of 0.82 and a debt-to-equity ratio of 0.28. The stock has a market capitalization of $16.45 billion, a price-to-earnings ratio of 21.90, a price-to-earnings-growth ratio of 3.09 and a beta of 1.10.

Fortive (NYSE:FTV - Get Free Report) last issued its earnings results on Wednesday, July 30th. The technology company reported $0.58 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.60 by ($0.02). Fortive had a return on equity of 11.96% and a net margin of 13.62%.The firm had revenue of $1.52 billion during the quarter, compared to analysts' expectations of $1.54 billion. During the same quarter last year, the business earned $0.93 EPS. The business's revenue was down .4% on a year-over-year basis. Fortive has set its FY 2025 guidance at 2.500-2.600 EPS. As a group, sell-side analysts anticipate that Fortive will post 4.05 earnings per share for the current year.

Fortive Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 26th. Stockholders of record on Friday, September 12th will be paid a $0.06 dividend. This represents a $0.24 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend is Friday, September 12th. Fortive's dividend payout ratio (DPR) is 10.81%.

Fortive declared that its Board of Directors has initiated a stock repurchase plan on Tuesday, May 27th that allows the company to repurchase 15,630,000 outstanding shares. This repurchase authorization allows the technology company to buy shares of its stock through open market purchases. Shares repurchase plans are often a sign that the company's management believes its shares are undervalued.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of FTV. True Wealth Design LLC lifted its stake 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 buying an additional 424 shares in the last quarter. American National Bank & Trust bought a new position in Fortive in the first quarter valued at $26,000. Accent Capital Management LLC acquired a new position in Fortive during the first quarter worth $26,000. Global X Japan Co. Ltd. increased its holdings in 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 buying an additional 201 shares during the last quarter. Finally, Park Square Financial Group LLC acquired a new position in shares of Fortive in the fourth quarter valued at $30,000. Institutional investors own 94.94% of the company's stock.

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.