PHINIA (NYSE:PHIN) Rating Lowered to "Strong Sell" at Zacks Research

Key Points

• Zacks Research downgraded PHINIA to “strong sell” from “hold,” although the broader analyst consensus remains “moderate buy” with a $76.33 target price.
• PHINIA’s latest quarter produced $940 million in revenue, above expectations, but earnings per share of $1.53 missed estimates due to higher employee costs and an unfavorable product mix.
• The stock traded around $79.75, up 2.2%, while institutional investors owned 90.94% of shares; two company vice presidents also sold stock in June.

PHINIA (NYSE:PHIN - Get Free Report) was downgraded by Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Monday,Zacks.com reports.

Several other equities analysts also recently commented on PHIN. KeyCorp assumed coverage on shares of PHINIA in a research note on Friday, June 12th. They issued an "overweight" rating and a $105.00 price target for the company. UBS Group reduced their price objective on PHINIA from $81.00 to $80.00 and set a "neutral" rating on the stock in a research note on Friday. Weiss Ratings upgraded PHINIA from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday, July 21st. Wall Street Zen cut PHINIA from a "strong-buy" rating to a "buy" rating in a research note on Saturday. Finally, Northland Securities set a $98.00 price target on PHINIA in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $76.33.

PHINIA Trading Up 2.2%

NYSE PHIN opened at $79.75 on Monday. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.34 and a current ratio of 1.81. The firm has a market cap of $2.92 billion, a price-to-earnings ratio of 22.85 and a beta of 1.17. The firm has a 50 day simple moving average of $79.58 and a 200-day simple moving average of $74.48. PHINIA has a one year low of $49.43 and a one year high of $86.93.

PHINIA (NYSE:PHIN - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported $1.53 earnings per share for the quarter, missing the consensus estimate of $1.57 by ($0.04). The business had revenue of $940.00 million for the quarter, compared to analysts' expectations of $918.83 million. PHINIA had a return on equity of 13.86% and a net margin of 3.73%. Equities research analysts anticipate that PHINIA will post 6.18 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, VP Michael Coetzee sold 1,250 shares of PHINIA stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $80.61, for a total transaction of $100,762.50. Following the completion of the sale, the vice president directly owned 27,009 shares of the company's stock, valued at approximately $2,177,195.49. The trade was a 4.42% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Samantha Pombier sold 2,227 shares of the business's stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $82.36, for a total transaction of $183,415.72. Following the transaction, the vice president owned 6,637 shares of the company's stock, valued at approximately $546,623.32. The trade was a 25.12% decrease in their position. The disclosure for this sale is available in the SEC filing. 2.20% of the stock is currently owned by company insiders.

Institutional Trading of PHINIA

A number of institutional investors have recently bought and sold shares of PHIN. Royal Bank of Canada increased its holdings in shares of PHINIA by 464.8% in the 1st quarter. Royal Bank of Canada now owns 75,745 shares of the company's stock valued at $3,214,000 after acquiring an additional 62,333 shares during the last quarter. AQR Capital Management LLC lifted its stake in PHINIA by 62.3% during the first quarter. AQR Capital Management LLC now owns 22,343 shares of the company's stock worth $938,000 after purchasing an additional 8,576 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in PHINIA by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 24,891 shares of the company's stock valued at $1,056,000 after purchasing an additional 1,093 shares in the last quarter. Goldman Sachs Group Inc. boosted its holdings in PHINIA by 6.4% in the first quarter. Goldman Sachs Group Inc. now owns 977,177 shares of the company's stock valued at $41,462,000 after purchasing an additional 58,875 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in PHINIA by 7.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 94,270 shares of the company's stock valued at $4,000,000 after purchasing an additional 6,478 shares during the last quarter. 90.94% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting PHINIA

Here are the key news stories impacting PHINIA this week:

• Positive Sentiment: PHINIA’s second-quarter revenue exceeded expectations, supporting the view that demand and business growth remain solid despite profitability pressure. An analysis highlighted the factors driving the company’s growth. PHINIA Beats Expectations: What’s Driving the Growth?
• Neutral Sentiment: Northland Securities raised its estimate for second-quarter 2027 EPS to $2.07 from $1.81, suggesting it expects improved earnings in that period. However, the firm maintained a generally cautious outlook for other periods.
• Negative Sentiment: PHINIA’s second-quarter earnings missed estimates, despite higher sales. Increased employee costs and an unfavorable product mix weighed on margins and caused EPS to come in below expectations. PHINIA Q2 Earnings Miss Estimates on Higher Employee Costs
• Negative Sentiment: Northland Securities lowered its PHINIA EPS forecasts for Q3 2026 to $1.74 from $1.78, Q4 2026 to $1.69 from $1.73, and full-year 2026 to $6.25 from $6.36. It also cut its Q4 2027 estimate to $1.61 from $1.78 and full-year 2027 to $7.21 from $7.28. These revisions indicate concern that cost pressures and product mix may persist.

About PHINIA

PHINIA Inc engages in the development, design, and manufacture of integrated components and systems that optimize performance, increase efficiency, and reduce emissions in combustion and hybrid propulsion for commercial and light vehicles, and industrial applications. The company operates through Fuel Systems and Aftermarket segments. The Fuel Systems segment provides advanced fuel injection systems, including pumps, injectors, fuel rail assemblies, and engine control modules; fuel delivery modules; canisters; sensors; and electronic control modules.

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