Hyster-Yale (NYSE:HY) Shares Gap Down on Disappointing Earnings

Key Points

• Hyster-Yale's stock price fell significantly from a previous close of $42.20 to $38.32, and it last traded at $36.37, showing a clear downward trend.
• Wall Street analysts downgraded Hyster-Yale from a "buy" to a "hold" rating, indicating a cautious outlook on the company's performance.
• The company recently increased its quarterly dividend to $0.36, representing a 4.0% dividend yield and a positive change from the previous dividend of $0.35.

Hyster-Yale, Inc. (NYSE:HY - Get Free Report)'s share price gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $42.20, but opened at $38.32. Hyster-Yale shares last traded at $36.37, with a volume of 49,139 shares traded.

The industrial products company reported ($0.14) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.26 by ($0.40). Hyster-Yale had a net margin of 0.56% and a return on equity of 9.57%. The firm had revenue of $956.60 million during the quarter, compared to the consensus estimate of $936.90 million.

Hyster-Yale Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 13th. Stockholders of record on Friday, May 30th were given a $0.36 dividend. The ex-dividend date of this dividend was Friday, May 30th. This is a boost from Hyster-Yale's previous quarterly dividend of $0.35. This represents a $1.44 annualized dividend and a dividend yield of 4.0%. Hyster-Yale's payout ratio is currently 116.13%.

Wall Street Analyst Weigh In

Separately, Wall Street Zen cut shares of Hyster-Yale from a "buy" rating to a "hold" rating in a research note on Thursday, May 8th.

Hedge Funds Weigh In On Hyster-Yale

Several institutional investors and hedge funds have recently made changes to their positions in the company. First Trust Advisors LP acquired a new stake in shares of Hyster-Yale in the fourth quarter valued at approximately $3,265,000. AQR Capital Management LLC lifted its position in Hyster-Yale by 110.6% during the first quarter. AQR Capital Management LLC now owns 79,582 shares of the industrial products company's stock worth $3,306,000 after purchasing an additional 41,795 shares during the period. JPMorgan Chase & Co. grew its stake in Hyster-Yale by 165.5% during the fourth quarter. JPMorgan Chase & Co. now owns 63,231 shares of the industrial products company's stock worth $3,220,000 after buying an additional 39,415 shares in the last quarter. Bridgeway Capital Management LLC increased its holdings in Hyster-Yale by 133.7% in the 1st quarter. Bridgeway Capital Management LLC now owns 68,701 shares of the industrial products company's stock valued at $2,854,000 after buying an additional 39,302 shares during the period. Finally, Truvestments Capital LLC raised its position in shares of Hyster-Yale by 89.4% in the 1st quarter. Truvestments Capital LLC now owns 77,918 shares of the industrial products company's stock valued at $3,237,000 after buying an additional 36,786 shares in the last quarter. Institutional investors and hedge funds own 46.47% of the company's stock.

Hyster-Yale Stock Down 3.5%

The firm's 50-day moving average price is $40.92 and its 200 day moving average price is $43.19. The company has a current ratio of 1.40, a quick ratio of 0.65 and a debt-to-equity ratio of 0.45. The company has a market capitalization of $638.71 million, a price-to-earnings ratio of 29.08 and a beta of 1.53.

Hyster-Yale Company Profile

Hyster-Yale, Inc, through its subsidiaries, designs, engineers, manufactures, sells, and services a line of lift trucks, attachments, and aftermarket parts worldwide. The company manufactures components, such as frames, masts, and transmissions; and assembles lift trucks. It markets its products primarily under the Hyster and Yale brand names to independent Hyster and Yale retail dealerships.