Ingersoll Rand (NYSE:IR) Stock Price Down 10.9% - Time to Sell?

Key Points

• Ingersoll Rand's stock price dropped 10.9% to $75.39, with a significant decline in trading volume, indicating potential market concerns.
• Despite the recent drop, analysts maintain a generally positive outlook, with a consensus price target of $100.92 and several analysts issuing "buy" ratings.
• The company recently announced a quarterly dividend of $0.02 per share, alongside a $1 billion stock repurchase program, reflecting confidence in its stock valuation.

Ingersoll Rand Inc. (NYSE:IR - Get Free Report)'s share price fell 10.9% during trading on Friday . The stock traded as low as $76.16 and last traded at $75.39. 1,407,181 shares changed hands during trading, a decline of 51% from the average session volume of 2,869,656 shares. The stock had previously closed at $84.63.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the stock. Citigroup reaffirmed a "buy" rating and issued a $104.00 price objective (up previously from $91.00) on shares of Ingersoll Rand in a research note on Monday, July 14th. Melius Research set a $93.00 target price on shares of Ingersoll Rand in a research report on Monday, July 14th. Melius lowered shares of Ingersoll Rand from a "buy" rating to a "hold" rating and set a $93.00 target price for the company. in a research report on Monday, July 14th. Wells Fargo & Company boosted their target price on shares of Ingersoll Rand from $86.00 to $95.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 1st. Finally, Stifel Nicolaus boosted their target price on shares of Ingersoll Rand from $78.00 to $95.00 and gave the stock a "hold" rating in a research report on Monday, July 21st. Seven investment analysts have rated the stock with a hold rating and six have issued a buy rating to the company's stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $100.92.

Ingersoll Rand Trading Down 11.0%

The business's 50 day simple moving average is $84.29 and its 200-day simple moving average is $82.98. The stock has a market capitalization of $30.37 billion, a P/E ratio of 37.27, a PEG ratio of 3.60 and a beta of 1.43. The company has a debt-to-equity ratio of 0.45, a current ratio of 2.38 and a quick ratio of 1.76.

Ingersoll Rand (NYSE:IR - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The industrial products company reported $0.80 EPS for the quarter, meeting analysts' consensus estimates of $0.80. The company had revenue of $1.89 billion for the quarter, compared to analyst estimates of $1.85 billion. Ingersoll Rand had a return on equity of 12.33% and a net margin of 11.30%. The company's quarterly revenue was up 4.6% compared to the same quarter last year. During the same period in the previous year, the company posted $0.83 earnings per share. As a group, analysts forecast that Ingersoll Rand Inc. will post 3.32 EPS for the current year.

Ingersoll Rand Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders of record on Thursday, August 14th will be paid a dividend of $0.02 per share. The ex-dividend date is Thursday, August 14th. This represents a $0.08 annualized dividend and a dividend yield of 0.1%. Ingersoll Rand's payout ratio is currently 3.96%.

Ingersoll Rand declared that its board has authorized a stock repurchase program on Thursday, May 1st that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the industrial products company to purchase up to 3.3% of its stock through open market purchases. Stock buyback programs are often a sign that the company's board of directors believes its shares are undervalued.

Insider Activity

In related news, insider Elizabeth Meloy Hepding sold 3,500 shares of the company's stock in a transaction dated Wednesday, May 14th. The shares were sold at an average price of $83.78, for a total value of $293,230.00. Following the transaction, the insider owned 10,986 shares in the company, valued at approximately $920,407.08. This represents a 24.16% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Vicente Reynal sold 38,657 shares of the company's stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $83.03, for a total transaction of $3,209,690.71. Following the completion of the transaction, the insider owned 193,186 shares in the company, valued at approximately $16,040,233.58. This trade represents a 16.67% decrease in their position. The disclosure for this sale can be found here. 0.59% of the stock is owned by insiders.

Institutional Trading of Ingersoll Rand

A number of institutional investors and hedge funds have recently made changes to their positions in the company. T. Rowe Price Investment Management Inc. raised its stake in Ingersoll Rand by 28.8% during the first quarter. T. Rowe Price Investment Management Inc. now owns 17,826,488 shares of the industrial products company's stock worth $1,426,654,000 after buying an additional 3,989,643 shares during the last quarter. Nuveen LLC bought a new position in Ingersoll Rand during the first quarter worth $211,408,000. Price T Rowe Associates Inc. MD raised its stake in Ingersoll Rand by 10.7% during the first quarter. Price T Rowe Associates Inc. MD now owns 19,198,593 shares of the industrial products company's stock worth $1,536,464,000 after buying an additional 1,849,030 shares during the last quarter. Capital International Investors raised its stake in Ingersoll Rand by 4.6% during the fourth quarter. Capital International Investors now owns 36,673,865 shares of the industrial products company's stock worth $3,317,537,000 after buying an additional 1,606,363 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC grew its holdings in Ingersoll Rand by 8,153.0% in the second quarter. Allspring Global Investments Holdings LLC now owns 1,614,212 shares of the industrial products company's stock worth $137,692,000 after purchasing an additional 1,594,653 shares during the period. Institutional investors own 95.27% of the company's stock.

Ingersoll Rand Company Profile

Ingersoll Rand Inc provides various mission-critical air, gas, liquid, and solid flow creation technologies services and solutions worldwide. It operates through two segments, Industrial Technologies and Services, and Precision and Science Technologies. The Industrial Technologies and Services segment designs, manufactures, markets, and services air and gas compression, vacuum, and blower products; fluid transfer equipment and loading systems; and power tools and lifting equipment, including associated aftermarket parts, consumables, air treatment equipment, controls, other accessories, and services under the under the Ingersoll Rand, Gardner Denver, Nash, CompAir, Elmo Rietschle brands, etc.

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