Park-Ohio (NASDAQ:PKOH) Shares Gap Down - What's Next?

Key Points

• Park-Ohio shares gapped down from a previous close of $46.32 to open at $42.66, later trading near $42.77 on relatively low volume.
• Despite the decline, analyst sentiment remains positive: the stock carries a consensus “Buy” rating with a $59 target price, while several firms recently upgraded their ratings or raised price targets.
• The company recently exceeded quarterly expectations, reporting $0.93 in EPS versus $0.81 expected and revenue of $440.1 million versus $425.6 million forecast; however, insiders sold 52,330 shares worth about $2.44 million over the past quarter.

Shares of Park-Ohio Holdings Corp. (NASDAQ:PKOH - Get Free Report) gapped down prior to trading on Friday. The stock had previously closed at $46.32, but opened at $42.66. Park-Ohio shares last traded at $42.7730, with a volume of 4,282 shares traded.

Analyst Ratings Changes

Several equities research analysts have commented on PKOH shares. KeyCorp boosted their price objective on Park-Ohio from $45.00 to $59.00 and gave the stock an "overweight" rating in a research note on Friday, August 7th. Weiss Ratings raised shares of Park-Ohio from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. Wall Street Zen upgraded Park-Ohio from a "buy" rating to a "strong-buy" rating in a report on Thursday, August 13th. Finally, Zacks Research upgraded Park-Ohio from a "hold" rating to a "strong-buy" rating in a research report on Monday, October 5th. One research analyst has rated the stock with a Strong Buy rating and two have assigned a Buy rating to the company's stock. According to MarketBeat.com, Park-Ohio presently has a consensus rating of "Buy" and a consensus target price of $59.00.

Park-Ohio Trading Down 0.4%

The company's fifty day moving average is $46.54 and its two-hundred day moving average is $38.56. The stock has a market cap of $624.37 million, a price-to-earnings ratio of 22.93, a PEG ratio of 1.18 and a beta of 1.24. The company has a quick ratio of 1.26, a current ratio of 2.40 and a debt-to-equity ratio of 1.66.

Park-Ohio (NASDAQ:PKOH - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The industrial products company reported $0.93 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.81 by $0.12. The company had revenue of $440.10 million during the quarter, compared to the consensus estimate of $425.57 million. Park-Ohio had a return on equity of 10.55% and a net margin of 1.60%. Park-Ohio has set its FY 2026 guidance at 3.100-3.300 EPS. On average, research analysts predict that Park-Ohio Holdings Corp. will post 3.26 EPS for the current fiscal year.

Insiders Place Their Bets

In other Park-Ohio news, insider Robert Vilsack sold 9,000 shares of the business's stock in a transaction that occurred on Monday, September 28th. The stock was sold at an average price of $47.44, for a total value of $426,960.00. Following the completion of the sale, the insider owned 167,836 shares in the company, valued at approximately $7,962,139.84. The trade was a 5.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James Wert sold 3,000 shares of the company's stock in a transaction on Thursday, September 24th. The shares were sold at an average price of $47.50, for a total transaction of $142,500.00. Following the completion of the sale, the director owned 85,456 shares of the company's stock, valued at approximately $4,059,160. This trade represents a 3.39% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 52,330 shares of company stock valued at $2,438,390 over the last quarter. Company insiders own 31.10% of the company's stock.

Institutional Trading of Park-Ohio

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Dimensional Fund Advisors LP grew its stake in shares of Park-Ohio by 0.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 837,015 shares of the industrial products company's stock valued at $20,121,000 after purchasing an additional 6,547 shares during the last quarter. BlackRock Inc. purchased a new stake in shares of Park-Ohio during the second quarter worth approximately $28,189,000. JB Capital Partners LP purchased a new stake in shares of Park-Ohio during the second quarter worth approximately $4,672,389. Bank of New York Mellon Corp acquired a new stake in shares of Park-Ohio during the second quarter worth $4,403,000. Finally, CM Wealth Advisors LLC acquired a new stake in shares of Park-Ohio during the second quarter worth $4,302,000. 51.38% of the stock is owned by hedge funds and other institutional investors.

About Park-Ohio

Park-Ohio Holdings Corp. NASDAQ: PKOH is a diversified manufacturing and supply-chain management company serving original equipment manufacturers and other industrial customers. Through its operating businesses, the company provides engineered products, component manufacturing, and integrated supply-chain services.

Park-Ohio's manufacturing activities include the production of forged, machined, stamped, molded, and assembled components, as well as specialized products made from metal, rubber, and other materials.

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