Park-Ohio (NASDAQ:PKOH) Shares Gap Up After Strong Earnings

Key Points

• Quarterly results beat expectations: Park-Ohio reported EPS of $1.04 versus the $0.90 consensus and revenue of $458.5 million versus the $432.13 million estimate.
• Shares opened sharply higher at $50, up from the prior close of $43.50, but later traded at $43.04.
• The company declared a quarterly dividend of $0.125 per share, equivalent to a 1.2% annualized yield. Analysts’ average rating was “Moderate Buy,” with a consensus price target of $59.

Park-Ohio Holdings Corp. (NASDAQ:PKOH - Get Free Report)'s share price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $43.50, but opened at $50.00. Park-Ohio shares last traded at $43.04, with a volume of 7,413 shares.

The industrial products company reported $1.04 earnings per share for the quarter, topping the consensus estimate of $0.90 by $0.14. Park-Ohio had a return on equity of 10.55% and a net margin of 1.60%. The company had revenue of $458.50 million during the quarter, compared to the consensus estimate of $432.13 million.

Park-Ohio Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 27th. Shareholders of record on Friday, November 13th will be issued a dividend of $0.1250 per share. The ex-dividend date of this dividend is Friday, November 13th. This represents a $0.50 annualized dividend and a yield of 1.2%. Park-Ohio's dividend payout ratio is 26.60%.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on PKOH. Weiss Ratings upgraded shares of Park-Ohio from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. Zacks Research cut shares of Park-Ohio from a "strong-buy" rating to a "hold" rating in a research note on Tuesday. KeyCorp raised their price objective on shares of Park-Ohio from $45.00 to $59.00 and gave the stock an "overweight" rating in a report on Friday, August 7th. Finally, Wall Street Zen upgraded shares of Park-Ohio from a "buy" rating to a "strong-buy" rating in a research note on Thursday, August 13th. Two analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $59.00.

Insider Activity

In related news, Director James W. Wert sold 3,000 shares of the business's stock in a transaction that occurred 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 transaction, the director owned 85,456 shares of the company's stock, valued at approximately $4,059,160. The trade was a 3.39% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Robert D. Vilsack sold 3,190 shares of the company's stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $46.42, for a total transaction of $148,079.80. Following the sale, the insider directly owned 144,024 shares in the company, valued at $6,685,594.08. This trade represents a 2.17% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 52,330 shares of company stock worth $2,438,390. Company insiders own 31.10% of the company's stock.

Institutional Investors Weigh In On Park-Ohio

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Simplex Trading LLC grew its holdings in shares of Park-Ohio by 573.5% during the third quarter. Simplex Trading LLC now owns 6,735 shares of the industrial products company's stock worth $311,000 after purchasing an additional 5,735 shares in the last quarter. Allspring Global Investments Holdings LLC grew its stake in Park-Ohio by 4.1% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 15,372 shares of the industrial products company's stock worth $715,000 after buying an additional 607 shares in the last quarter. Commonwealth Equity Services LLC bought a new position in shares of Park-Ohio in the 3rd quarter worth $268,000. USA Financial Formulas bought a new position in shares of Park-Ohio in the 3rd quarter worth $43,000. Finally, State of Alaska Department of Revenue bought a new position in shares of Park-Ohio in the 3rd quarter worth $27,000. Hedge funds and other institutional investors own 51.38% of the company's stock.

Park-Ohio Price Performance

The business's fifty day moving average price is $46.04 and its 200-day moving average price is $35.21. The company has a market capitalization of $622.42 million, a P/E ratio of 22.85, a P/E/G ratio of 1.13 and a beta of 1.34. The company has a current ratio of 2.40, a quick ratio of 1.26 and a debt-to-equity ratio of 1.66.

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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