Allient (NASDAQ:ALNT) Shares Gap Down on Analyst Downgrade

Key Points

• JPMorgan downgraded Allient from “overweight” to “neutral,” sending shares down from a $106.38 close to a $100.93 opening; JPMorgan set a $120 price target.
• Analyst sentiment remains generally positive, with four Buy ratings and two Holds, producing a “Moderate Buy” consensus, though the average price target is $84.00.
• Allient reported quarterly earnings of $0.80 per share, exceeding the $0.61 estimate, while revenue of $153.77 million also topped expectations; CEO Richard Warzala separately sold 70,000 shares.

Shares of Allient Inc. (NASDAQ:ALNT - Get Free Report) gapped down prior to trading on Tuesday after JPMorgan Chase & Co. downgraded the stock from an overweight rating to a neutral rating. The stock had previously closed at $106.38, but opened at $100.93. JPMorgan Chase & Co. now has a $120.00 price target on the stock. Allient shares last traded at $102.4990, with a volume of 26,851 shares trading hands.

Other analysts have also issued reports about the company. Weiss Ratings raised Allient from a "hold (c+)" rating to a "buy (b)" rating in a report on Thursday. Zacks Research downgraded Allient from a "strong-buy" rating to a "hold" rating in a report on Tuesday, October 6th. Finally, Wall Street Zen downgraded Allient from a "strong-buy" rating to a "buy" rating in a report on Saturday, September 19th. Four analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $84.00.

Insider Transactions at Allient

In related news, CEO Richard Warzala sold 70,000 shares of the firm's stock in a transaction on Monday, August 10th. The shares were sold at an average price of $113.58, for a total transaction of $7,950,600.00. Following the sale, the chief executive officer owned 1,499,106 shares in the company, valued at approximately $170,268,459.48. This trade represents a 4.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 15.00% of the company's stock.

Institutional Investors Weigh In On Allient

Several hedge funds have recently modified their holdings of the company. BlackRock Inc. acquired a new stake in Allient in the second quarter valued at approximately $128,774,000. Jennison Associates LLC increased its position in shares of Allient by 111.5% in the first quarter. Jennison Associates LLC now owns 353,430 shares of the company's stock valued at $20,884,000 after buying an additional 186,316 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in shares of Allient in the second quarter valued at approximately $9,051,000. Deutsche Bank AG acquired a new position in shares of Allient during the 2nd quarter worth approximately $6,813,000. Finally, Sei Investments Co. raised its stake in shares of Allient by 87.9% during the 1st quarter. Sei Investments Co. now owns 55,424 shares of the company's stock worth $3,275,000 after buying an additional 25,935 shares during the period. 61.57% of the stock is owned by hedge funds and other institutional investors.

Allient Stock Performance

The company has a market cap of $1.74 billion, a PE ratio of 60.18 and a beta of 1.58. The firm's fifty day moving average is $103.52 and its 200 day moving average is $87.60. The company has a current ratio of 3.42, a quick ratio of 1.95 and a debt-to-equity ratio of 0.56.

Allient (NASDAQ:ALNT - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.80 earnings per share for the quarter, beating analysts' consensus estimates of $0.61 by $0.19. The firm had revenue of $153.77 million for the quarter, compared to analyst estimates of $145.68 million. Allient had a net margin of 4.98% and a return on equity of 13.55%. As a group, research analysts predict that Allient Inc. will post 2.73 EPS for the current fiscal year.

Allient Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 2nd. Investors of record on Wednesday, August 19th were given a dividend of $0.04 per share. This represents a $0.16 annualized dividend and a dividend yield of 0.2%. The ex-dividend date was Wednesday, August 19th. Allient's payout ratio is presently 9.41%.

Allient Company Profile

Allient Inc NASDAQ: ALNT is a global manufacturer of precision and specialty motion-control products. The company designs and produces motors, motion controllers, drives, servo systems, electromechanical assemblies, and related components used to control movement and power in complex equipment.

Allient serves a range of markets, including medical equipment, aerospace and defense, industrial automation, robotics, vehicle systems, and other demanding applications. Its products are used in areas such as surgical and diagnostic equipment, factory automation, unmanned systems, and precision machinery.

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