Applied Industrial Technologies (NYSE:AIT) Shares Gap Down - Should You Sell?

Key Points

• Applied Industrial Technologies shares fell sharply, opening at $311 after previously closing at $324.68 and later trading near $304.13.
• Despite the decline, analyst sentiment remains positive: seven analysts rate the stock a Buy, with a consensus price target of $398.33.
• The company exceeded quarterly earnings expectations, reporting $2.97 in EPS versus the $2.89 consensus estimate, while revenue increased 7.6% year over year.

Shares of Applied Industrial Technologies, Inc. (NYSE:AIT - Get Free Report) gapped down before the market opened on Tuesday. The stock had previously closed at $324.68, but opened at $311.00. Applied Industrial Technologies shares last traded at $304.1290, with a volume of 62,709 shares traded.

Analyst Ratings Changes

A number of equities analysts have recently commented on the company. Bank of America raised their price objective on Applied Industrial Technologies from $380.00 to $390.00 and gave the stock a "buy" rating in a report on Friday, August 14th. Robert W. Baird increased their target price on shares of Applied Industrial Technologies from $317.00 to $400.00 and gave the stock an "outperform" rating in a research report on Friday, August 14th. Weiss Ratings lowered shares of Applied Industrial Technologies from a "buy (a-)" rating to a "buy (b)" rating in a report on Friday. DA Davidson raised their price target on shares of Applied Industrial Technologies from $380.00 to $400.00 and gave the company a "buy" rating in a report on Friday, August 14th. Finally, Mizuho decreased their price objective on shares of Applied Industrial Technologies from $400.00 to $390.00 and set an "outperform" rating for the company in a research note on Thursday, October 15th. Seven analysts have rated the stock with a Buy rating. According to MarketBeat.com, Applied Industrial Technologies has a consensus rating of "Buy" and a consensus target price of $398.33.

Applied Industrial Technologies Stock Performance

The company has a debt-to-equity ratio of 0.14, a current ratio of 2.58 and a quick ratio of 1.75. The stock has a 50-day moving average price of $332.15 and a 200-day moving average price of $308.38. The firm has a market capitalization of $11.18 billion, a PE ratio of 27.75, a price-to-earnings-growth ratio of 2.54 and a beta of 0.85.

Applied Industrial Technologies (NYSE:AIT - Get Free Report) last released its earnings results on Tuesday, October 27th. The industrial products company reported $2.97 earnings per share for the quarter, topping the consensus estimate of $2.89 by $0.08. Applied Industrial Technologies had a net margin of 8.35% and a return on equity of 22.17%. During the same period in the prior year, the company posted $2.63 earnings per share. Applied Industrial Technologies's revenue was up 7.6% compared to the same quarter last year. On average, research analysts expect that Applied Industrial Technologies, Inc. will post 12.00 EPS for the current fiscal year.

Insider Transactions at Applied Industrial Technologies

In related news, Director Peter C. Wallace sold 1,904 shares of the stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $340.45, for a total transaction of $648,216.80. Following the sale, the director owned 22,859 shares in the company, valued at $7,782,346.55. This represents a 7.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO David K. Wells sold 1,812 shares of the firm's stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $355.10, for a total transaction of $643,441.20. Following the completion of the transaction, the chief financial officer directly owned 32,050 shares in the company, valued at $11,380,955. This represents a 5.35% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.60% of the company's stock.

Institutional Trading of Applied Industrial Technologies

A number of institutional investors and hedge funds have recently made changes to their positions in AIT. Alpine Bank Wealth Management bought a new stake in shares of Applied Industrial Technologies during the third quarter valued at approximately $25,000. Global Retirement Partners LLC bought a new position in Applied Industrial Technologies in the 2nd quarter worth approximately $37,000. Kilter Group LLC bought a new position in Applied Industrial Technologies in the 2nd quarter worth approximately $40,000. Silvant Capital Management LLC bought a new position in Applied Industrial Technologies in the 2nd quarter worth approximately $54,000. Finally, Harbor Investment Advisory LLC acquired a new stake in Applied Industrial Technologies in the 2nd quarter valued at approximately $96,000. 93.52% of the stock is currently owned by institutional investors and hedge funds.

Applied Industrial Technologies Company Profile

Applied Industrial Technologies, Inc NYSE: AIT is a distributor and value-added service provider of industrial motion, power transmission, fluid power, automation, and control products. Its offerings include bearings, mechanical power-transmission components, motors, gearboxes, hydraulic and pneumatic equipment, industrial hoses, process pumps, safety products, and related maintenance supplies.

The company also provides technical and engineering services designed to help customers improve equipment performance, reliability, and productivity.

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