Emerson Electric (NYSE:EMR) Reaches New 1-Year High - Time to Buy?

Key Points

• Emerson Electric shares reached a new 52-week high of $166.57, with the stock last trading near $166.28 and a market capitalization of approximately $93.1 billion.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $172.17, although individual targets range from $170 to $180.
• The company exceeded quarterly earnings and revenue expectations, reporting $1.71 in EPS and $4.87 billion in revenue, while paying a quarterly dividend of $0.555, representing a 1.3% yield.

Emerson Electric Co. (NYSE:EMR - Get Free Report)'s share price reached a new 52-week high during trading on Tuesday. The stock traded as high as $166.57 and last traded at $166.2780, with a volume of 1,514,838 shares traded. The stock had previously closed at $161.70.

Analysts Set New Price Targets

Several equities analysts recently issued reports on EMR shares. KeyCorp decreased their target price on shares of Emerson Electric from $185.00 to $170.00 and set an "overweight" rating for the company in a research note on Monday, July 13th. Wells Fargo & Company started coverage on shares of Emerson Electric in a research report on Friday, September 25th. They set an "overweight" rating and a $177.00 price target on the stock. HSBC upped their price objective on shares of Emerson Electric from $170.00 to $180.00 in a research report on Thursday, August 6th. Mizuho increased their price target on Emerson Electric from $173.00 to $180.00 and gave the stock an "outperform" rating in a research report on Thursday, October 15th. Finally, TD Cowen upped their price target on shares of Emerson Electric from $150.00 to $170.00 and gave the stock a "hold" rating in a research report on Friday, September 25th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $172.17.

Emerson Electric Stock Performance

The company has a current ratio of 0.90, a quick ratio of 0.66 and a debt-to-equity ratio of 0.37. The firm has a fifty day moving average price of $156.34 and a 200 day moving average price of $146.61. The firm has a market cap of $93.13 billion, a PE ratio of 36.38, a price-to-earnings-growth ratio of 2.22 and a beta of 1.21.

Emerson Electric (NYSE:EMR - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $1.71 earnings per share for the quarter, beating the consensus estimate of $1.68 by $0.03. Emerson Electric had a net margin of 13.83% and a return on equity of 17.58%. The firm had revenue of $4.87 billion for the quarter, compared to analysts' expectations of $4.80 billion. During the same quarter in the previous year, the company posted $1.52 EPS. The company's revenue was up .0% compared to the same quarter last year. Emerson Electric has set its FY 2026 guidance at 6.550-6.550 EPS and its Q4 2026 guidance at 1.850-1.850 EPS. As a group, equities research analysts expect that Emerson Electric Co. will post 6.56 earnings per share for the current fiscal year.

Emerson Electric Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Friday, August 14th were paid a $0.5550 dividend. The ex-dividend date of this dividend was Friday, August 14th. This represents a $2.22 annualized dividend and a dividend yield of 1.3%. Emerson Electric's dividend payout ratio is 48.58%.

Insider Activity

In other news, CEO Surendralal Karsanbhai sold 9,650 shares of Emerson Electric stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $161.91, for a total transaction of $1,562,431.50. Following the sale, the chief executive officer owned 271,743 shares of the company's stock, valued at approximately $43,997,909.13. The trade was a 3.43% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.23% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Emerson Electric

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new position in shares of Emerson Electric during the 2nd quarter worth $6,193,425,000. State Street Corp raised its holdings in Emerson Electric by 1.5% in the 2nd quarter. State Street Corp now owns 27,678,497 shares of the industrial products company's stock valued at $3,962,177,000 after buying an additional 403,957 shares during the period. Bank of America Corp DE purchased a new stake in Emerson Electric in the 2nd quarter valued at about $2,629,146,000. ABS Investment Management LLC acquired a new position in Emerson Electric in the second quarter valued at about $858,900,000. Finally, Bank of New York Mellon Corp lifted its position in Emerson Electric by 1.9% in the first quarter. Bank of New York Mellon Corp now owns 6,315,661 shares of the industrial products company's stock valued at $827,478,000 after buying an additional 117,513 shares during the last quarter. Institutional investors and hedge funds own 74.30% of the company's stock.

About Emerson Electric

Emerson Electric Co NYSE: EMR is a global technology and engineering company that provides automation, control, and industrial technology solutions. Its offerings include measurement and analytical instruments, control systems, valves, regulators, software, and related services used to improve the safety, efficiency, and reliability of industrial operations.

The company serves customers across industries such as energy, chemicals, life sciences, food and beverage, manufacturing, and commercial and residential applications.

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