Hubbell (NYSE:HUBB) Shares Gap Down - Here's Why

Key Points

• Hubbell shares fell sharply, opening at $430.64 versus the prior close of $459.40 and last trading around $438.23, a decline of roughly 4.1%.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $552.67; individual targets range from $485 to $630.
• Hubbell reported quarterly EPS of $5.91, exceeding expectations, while revenue rose 24.6% year over year to $1.87 billion. The company also increased its quarterly dividend to $1.52 per share from $1.42.

Shares of Hubbell Inc (NYSE:HUBB - Get Free Report) gapped down before the market opened on Tuesday. The stock had previously closed at $459.40, but opened at $430.64. Hubbell shares last traded at $438.2280, with a volume of 261,231 shares.

Analysts Set New Price Targets

Several analysts have recently weighed in on HUBB shares. Wells Fargo & Company initiated coverage on Hubbell in a report on Thursday, September 24th. They issued an "equal weight" rating and a $531.00 target price for the company. Evercore restated an "outperform" rating and set a $630.00 price target on shares of Hubbell in a research note on Friday, October 9th. Seaport Research Partners reaffirmed a "buy" rating and set a $580.00 price target on shares of Hubbell in a research report on Wednesday, September 30th. Weiss Ratings upgraded shares of Hubbell from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, October 8th. Finally, JPMorgan Chase & Co. started coverage on shares of Hubbell in a report on Tuesday, October 20th. They issued a "neutral" rating and a $485.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $552.67.

Hubbell Stock Down 4.1%

The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.93 and a current ratio of 1.61. The firm has a market capitalization of $23.27 billion, a price-to-earnings ratio of 26.05, a PEG ratio of 2.23 and a beta of 0.85. The firm has a fifty day moving average price of $463.32 and a 200 day moving average price of $488.50.

Hubbell (NYSE:HUBB - Get Free Report) last announced its quarterly earnings data on Tuesday, October 27th. The industrial products company reported $5.91 EPS for the quarter, beating the consensus estimate of $5.75 by $0.16. The firm had revenue of $1.87 billion during the quarter, compared to analysts' expectations of $1.85 billion. Hubbell had a net margin of 14.49% and a return on equity of 27.11%. The business's revenue for the quarter was up 24.6% compared to the same quarter last year. During the same quarter last year, the business earned $5.17 earnings per share. As a group, sell-side analysts expect that Hubbell Inc will post 20.50 EPS for the current fiscal year.

Hubbell Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Monday, November 30th will be paid a dividend of $1.52 per share. This is a positive change from Hubbell's previous quarterly dividend of $1.42. The ex-dividend date of this dividend is Monday, November 30th. This represents a $6.08 annualized dividend and a dividend yield of 1.4%. Hubbell's dividend payout ratio is presently 33.63%.

Insider Buying and Selling at Hubbell

In related news, VP Jonathan Del Nero sold 547 shares of the company's stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $518.56, for a total value of $283,652.32. Following the sale, the vice president owned 2,933 shares in the company, valued at $1,520,936.48. This represents a 15.72% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.63% of the stock is currently owned by corporate insiders.

Institutional Trading of Hubbell

A number of institutional investors have recently bought and sold shares of HUBB. BlackRock Inc. purchased a new position in shares of Hubbell in the second quarter valued at $2,455,986,000. Bank of New York Mellon Corp acquired a new stake in Hubbell in the 2nd quarter valued at about $783,142,000. Deutsche Bank AG acquired a new stake in Hubbell in the 2nd quarter valued at about $610,053,000. Bank of America Corp DE acquired a new stake in Hubbell in the 2nd quarter valued at about $204,918,000. Finally, Man Group plc purchased a new position in Hubbell during the 2nd quarter valued at about $179,698,000. 88.16% of the stock is currently owned by hedge funds and other institutional investors.

Hubbell Company Profile

Hubbell Incorporated NYSE: HUBB is an electrical products manufacturer that develops and supplies products used in utility, commercial, industrial, and telecommunications applications. Founded in 1888 by Harvey Hubbell, the company has built a portfolio focused on improving the reliability, safety, and efficiency of electrical systems.

Hubbell's Utility Solutions products support the generation, transmission, distribution, and control of electricity. Its offerings include electrical connectors and fittings, insulators, arresters, transmission and distribution hardware, communications infrastructure products, and equipment used in underground and overhead utility networks.

Its Electrical Solutions business serves commercial and industrial customers with wiring devices, electrical enclosures, grounding and bonding products, cable management systems, lighting-related products, and solutions designed for harsh, hazardous, and demanding operating environments.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.