Pentair (NYSE:PNR) Sets New 52-Week Low - Time to Sell?

Key Points

• Pentair shares fell to a new 52-week low of $51.67, trading well below their 50-day and 200-day moving averages of $60.50 and $71.70, respectively.
• Analyst sentiment has weakened, with several firms cutting price targets or downgrading the stock. The consensus rating is “Hold,” with an average target price of $87.19.
• Pentair’s latest quarterly results were mixed: adjusted EPS of $1.14 beat estimates, but revenue declined 17% year over year to $932.6 million. The company also maintains a quarterly dividend of $0.27 per share, yielding about 2.1%.

Pentair plc (NYSE:PNR - Get Free Report) reached a new 52-week low on Wednesday. The stock traded as low as $51.67 and last traded at $51.9610, with a volume of 521346 shares changing hands. The stock had previously closed at $52.94.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on PNR shares. Oppenheimer cut their price objective on shares of Pentair from $115.00 to $94.00 and set an "outperform" rating on the stock in a research report on Thursday, July 16th. Stifel Nicolaus reaffirmed a "hold" rating and set a $65.00 price target (down from $103.00) on shares of Pentair in a research note on Thursday, July 16th. Seaport Research Partners downgraded shares of Pentair from a "buy" rating to a "neutral" rating in a report on Wednesday, July 15th. Mizuho reduced their price objective on shares of Pentair from $100.00 to $85.00 and set an "outperform" rating on the stock in a research report on Tuesday, July 21st. Finally, Royal Bank Of Canada downgraded shares of Pentair from an "outperform" rating to a "sector perform" rating and decreased their price objective for the stock from $101.00 to $74.00 in a research note on Wednesday, July 15th. Nine analysts have rated the stock with a Buy rating, five have assigned a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, Pentair currently has a consensus rating of "Hold" and a consensus target price of $87.19.

Pentair Price Performance

The firm has a market capitalization of $8.34 billion, a P/E ratio of 13.12, a P/E/G ratio of 1.35 and a beta of 1.04. The stock's 50 day simple moving average is $60.50 and its 200 day simple moving average is $71.70. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.76 and a current ratio of 1.45.

Pentair (NYSE:PNR - Get Free Report) last issued its earnings results on Wednesday, July 29th. The industrial products company reported $1.14 earnings per share for the quarter, beating analysts' consensus estimates of $1.12 by $0.02. Pentair had a return on equity of 20.62% and a net margin of 16.24%.The business had revenue of $932.60 million during the quarter, compared to analyst estimates of $943.24 million. During the same period in the previous year, the company posted $1.39 EPS. Pentair's revenue was down 17.0% on a year-over-year basis. As a group, analysts expect that Pentair plc will post 4.64 earnings per share for the current fiscal year.

Pentair Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 6th. Shareholders of record on Friday, October 23rd will be issued a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a yield of 2.1%. The ex-dividend date is Friday, October 23rd. Pentair's dividend payout ratio is presently 27.14%.

Institutional Investors Weigh In On Pentair

Several large investors have recently modified their holdings of the business. Amundi boosted its stake in shares of Pentair by 13.1% during the first quarter. Amundi now owns 4,237,659 shares of the industrial products company's stock valued at $369,208,000 after purchasing an additional 491,758 shares in the last quarter. Panagora Asset Management Inc. raised its stake in Pentair by 26.1% in the fourth quarter. Panagora Asset Management Inc. now owns 1,550,935 shares of the industrial products company's stock worth $161,514,000 after buying an additional 321,341 shares in the last quarter. Hsbc Holdings PLC lifted its holdings in Pentair by 1,459.8% during the first quarter. Hsbc Holdings PLC now owns 1,270,578 shares of the industrial products company's stock worth $110,617,000 after buying an additional 1,189,122 shares during the period. First Trust Advisors LP boosted its position in Pentair by 52.9% during the 1st quarter. First Trust Advisors LP now owns 1,215,064 shares of the industrial products company's stock valued at $105,844,000 after acquiring an additional 420,140 shares in the last quarter. Finally, 140 Summer Partners LP boosted its position in Pentair by 10.7% during the 4th quarter. 140 Summer Partners LP now owns 607,112 shares of the industrial products company's stock valued at $63,225,000 after acquiring an additional 58,609 shares in the last quarter. Institutional investors own 92.37% of the company's stock.

Pentair Company Profile

Pentair plc NYSE: PNR is a water treatment and fluid management company that develops products and solutions for residential, commercial, industrial, and municipal customers. Its offerings are designed to help move, treat, filter, control, and conserve water across a range of applications.

The company's products include pool pumps, filters, heaters, cleaners, lighting, automation systems, and related equipment, as well as water softeners, filtration systems, pumps, valves, controls, and other water-treatment technologies.

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