Koninklijke Philips (NYSE:PHG) Shares Gap Down - Should You Sell?

Key Points

• Koninklijke Philips shares gapped down, opening at $25.98 after a prior close of $27.12 and last trading around $25.62 on roughly 331,000 shares.
• Multiple analysts (Weiss Ratings, Wall Street Zen, Zacks) recently cut their ratings, leaving the stock with a MarketBeat consensus of Hold.
• The company beat quarterly estimates (EPS $0.70 vs. $0.50; revenue $5.98B vs. $5.03B) and announced an annual dividend of $1.013 (ex-dividend May 13, payable June 3) with a payout ratio of 77.36%.

Koninklijke Philips N.V. (NYSE:PHG - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $27.12, but opened at $25.98. Koninklijke Philips shares last traded at $25.6190, with a volume of 331,189 shares changing hands.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the stock. Weiss Ratings cut shares of Koninklijke Philips from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, April 2nd. Wall Street Zen cut shares of Koninklijke Philips from a "buy" rating to a "hold" rating in a report on Sunday, April 5th. Finally, Zacks Research cut shares of Koninklijke Philips from a "strong-buy" rating to a "hold" rating in a report on Monday, April 13th. Four analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company presently has a consensus rating of "Hold".

Koninklijke Philips Stock Performance

The company has a debt-to-equity ratio of 0.63, a current ratio of 1.32 and a quick ratio of 0.94. The stock's 50 day simple moving average is $28.66 and its two-hundred day simple moving average is $28.46. The stock has a market cap of $24.89 billion, a P/E ratio of 24.40, a price-to-earnings-growth ratio of 7.15 and a beta of 0.81.

Koninklijke Philips (NYSE:PHG - Get Free Report) last posted its quarterly earnings data on Tuesday, February 10th. The technology company reported $0.70 EPS for the quarter, beating the consensus estimate of $0.50 by $0.20. The business had revenue of $5.98 billion for the quarter, compared to analysts' expectations of $5.03 billion. Koninklijke Philips had a net margin of 5.09% and a return on equity of 13.68%. As a group, research analysts forecast that Koninklijke Philips N.V. will post 1.86 EPS for the current year.

Koninklijke Philips Increases Dividend

The business also recently disclosed an annual dividend, which will be paid on Wednesday, June 3rd. Investors of record on Wednesday, May 13th will be given a $1.013 dividend. The ex-dividend date of this dividend is Wednesday, May 13th. This represents a yield of 318.0%. This is an increase from Koninklijke Philips's previous annual dividend of $0.89. Koninklijke Philips's payout ratio is presently 77.36%.

Institutional Investors Weigh In On Koninklijke Philips

Several institutional investors have recently added to or reduced their stakes in PHG. Royal Bank of Canada lifted its position in Koninklijke Philips by 1.3% in the 1st quarter. Royal Bank of Canada now owns 269,829 shares of the technology company's stock valued at $6,854,000 after acquiring an additional 3,540 shares in the last quarter. AQR Capital Management LLC boosted its holdings in Koninklijke Philips by 60.8% during the first quarter. AQR Capital Management LLC now owns 17,010 shares of the technology company's stock worth $432,000 after purchasing an additional 6,429 shares during the last quarter. Goldman Sachs Group Inc. boosted its holdings in Koninklijke Philips by 1.5% during the first quarter. Goldman Sachs Group Inc. now owns 846,253 shares of the technology company's stock worth $21,495,000 after purchasing an additional 12,908 shares during the last quarter. Jane Street Group LLC boosted its holdings in Koninklijke Philips by 125.8% during the first quarter. Jane Street Group LLC now owns 104,024 shares of the technology company's stock worth $2,642,000 after purchasing an additional 57,952 shares during the last quarter. Finally, JPMorgan Chase & Co. boosted its holdings in Koninklijke Philips by 58.0% during the second quarter. JPMorgan Chase & Co. now owns 87,616 shares of the technology company's stock worth $2,101,000 after purchasing an additional 32,180 shares during the last quarter. 13.67% of the stock is owned by institutional investors.

Koninklijke Philips Company Profile

Koninklijke Philips N.V. NYSE: PHG, commonly known as Philips, is a Dutch multinational company focused on health technology. Founded in Eindhoven in 1891, the company evolved from a diversified electronics manufacturer into a specialist in healthcare products, systems and services. Philips is legally registered in the Netherlands and operates globally, supplying equipment and solutions to hospitals, clinics, healthcare providers and consumers across Europe, the Americas and Asia.

Philips' principal activities center on medical technologies and personal health.

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