Ituran Location and Control (NASDAQ:ITRN) Reaches New 12-Month High - Should You Buy?

Key Points

• Ituran hit a new 52-week high of $59 in mid-day trading, giving the company a market cap of about $1.17 billion.
• The stock has a consensus "Buy" rating with an average price target of $60.67, and recent upgrades include Maxim Group's $70 target and Wall Street Zen's move to "strong‑buy."
• Ituran raised its quarterly dividend from $0.50 to $1.50 (annualized $6.00), implying a 10.2% yield, but the dividend payout ratio is 206.19%, which may be unsustainable.

Ituran Location and Control Ltd. (NASDAQ:ITRN - Get Free Report) hit a new 52-week high during mid-day trading on Monday . The stock traded as high as $59.00 and last traded at $58.9990, with a volume of 28256 shares. The stock had previously closed at $58.31.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on ITRN. Loop Capital set a $57.00 price objective on Ituran Location and Control in a research note on Monday, March 9th. Barclays upped their price target on shares of Ituran Location and Control from $50.00 to $55.00 and gave the stock an "overweight" rating in a research report on Thursday, March 5th. Maxim Group started coverage on shares of Ituran Location and Control in a research report on Thursday, March 12th. They issued a "buy" rating and a $70.00 price objective on the stock. Wall Street Zen raised shares of Ituran Location and Control from a "buy" rating to a "strong-buy" rating in a research note on Sunday, April 12th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Ituran Location and Control in a research note on Friday, March 27th. Three analysts have rated the stock with a Buy rating, According to data from MarketBeat, Ituran Location and Control has a consensus rating of "Buy" and a consensus price target of $60.67.

Ituran Location and Control Price Performance

The firm has a market cap of $1.17 billion, a price-to-earnings ratio of 20.27 and a beta of 0.73. The firm's fifty day moving average is $51.52 and its two-hundred day moving average is $45.34.

Ituran Location and Control (NASDAQ:ITRN - Get Free Report) last released its earnings results on Saturday, February 14th. The industrial products company reported $0.77 EPS for the quarter. Ituran Location and Control had a net margin of 16.15% and a return on equity of 27.27%. The firm had revenue of $93.50 million for the quarter.

Ituran Location and Control Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, April 16th. Investors of record on Monday, March 30th were issued a dividend of $1.50 per share. The ex-dividend date of this dividend was Monday, March 30th. This is a positive change from Ituran Location and Control's previous quarterly dividend of $0.50. This represents a $6.00 annualized dividend and a yield of 10.2%. Ituran Location and Control's dividend payout ratio is presently 206.19%.

Hedge Funds Weigh In On Ituran Location and Control

Several hedge funds have recently modified their holdings of ITRN. Ibex Investors LLC lifted its holdings in shares of Ituran Location and Control by 2.3% in the third quarter. Ibex Investors LLC now owns 896,313 shares of the industrial products company's stock valued at $32,016,000 after buying an additional 20,000 shares during the period. Y.D. More Investments Ltd grew its holdings in Ituran Location and Control by 3.8% during the first quarter. Y.D. More Investments Ltd now owns 891,274 shares of the industrial products company's stock worth $43,681,000 after acquiring an additional 33,000 shares during the period. GW&K Investment Management LLC raised its position in Ituran Location and Control by 909.3% in the fourth quarter. GW&K Investment Management LLC now owns 539,817 shares of the industrial products company's stock worth $23,218,000 after acquiring an additional 486,331 shares in the last quarter. Rice Hall James & Associates LLC lifted its holdings in Ituran Location and Control by 7.0% in the 4th quarter. Rice Hall James & Associates LLC now owns 528,164 shares of the industrial products company's stock valued at $22,716,000 after acquiring an additional 34,550 shares during the last quarter. Finally, River Road Asset Management LLC lifted its holdings in Ituran Location and Control by 0.3% in the 4th quarter. River Road Asset Management LLC now owns 410,105 shares of the industrial products company's stock valued at $17,639,000 after acquiring an additional 1,370 shares during the last quarter. 94.80% of the stock is currently owned by institutional investors and hedge funds.

About Ituran Location and Control

Ituran Location and Control Ltd. is a provider of wireless vehicle tracking and stolen vehicle recovery services. The company leverages a combination of cellular and global positioning system (GPS) technologies to offer real-time monitoring and location-based solutions for private vehicle owners, fleet operators and insurance companies. Its core offerings include subscription-based tracking devices, centralized control centers and software platforms that enable clients to detect unauthorized vehicle use, dispatch recovery teams and manage fleet logistics.

Founded in 1994 in Israel, Ituran pioneered the use of wireless communications for security and telematics applications.

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