Veralto (NYSE:VLTO) Hits New 1-Year High After Better-Than-Expected Earnings

Key Points

• Veralto shares reached a new 52-week high after the company reported quarterly EPS of $1.18, beating estimates by $0.09, while revenue of $1.51 billion exceeded forecasts and rose 7.5% year over year.
• The company declared a quarterly dividend of $0.13, equivalent to $0.52 annually and a 0.5% yield, with a payout ratio of 13.13%.
• Analysts maintain a generally positive view, with Veralto receiving a “Moderate Buy” consensus rating and an average price target of $112.60; institutional investors own 91.28% of its shares.

Shares of Veralto Corporation (NYSE:VLTO - Get Free Report) hit a new 52-week high during mid-day trading on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $114.26 and last traded at $112.1550, with a volume of 244,065 shares. The stock had previously closed at $104.06.

The company reported $1.18 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.09 by $0.09. The company had revenue of $1.51 billion during the quarter, compared to the consensus estimate of $1.50 billion. Veralto had a return on equity of 34.76% and a net margin of 17.35%. The firm's revenue was up 7.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.99 earnings per share.

Veralto Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Wednesday, September 30th will be paid a $0.13 dividend. The ex-dividend date is Wednesday, September 30th. This represents a $0.52 annualized dividend and a dividend yield of 0.5%. Veralto's dividend payout ratio is presently 13.13%.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on VLTO. UBS Group increased their price objective on Veralto from $104.00 to $106.00 and gave the company a "neutral" rating in a report on Monday, October 5th. Royal Bank Of Canada boosted their target price on Veralto from $100.00 to $109.00 and gave the company a "sector perform" rating in a research note on Thursday, July 30th. Wolfe Research assumed coverage on Veralto in a research report on Tuesday, September 15th. They set an "outperform" rating and a $125.00 price target on the stock. Wall Street Zen downgraded Veralto from a "buy" rating to a "hold" rating in a research note on Saturday, October 24th. Finally, Jefferies Financial Group raised Veralto to a "strong-buy" rating in a report on Monday, October 12th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and three have given a Hold rating to the company. According to MarketBeat, Veralto currently has an average rating of "Moderate Buy" and an average target price of $112.60.

Insiders Place Their Bets

In related news, SVP Surekha Trivedi sold 986 shares of Veralto stock in a transaction on Monday, August 17th. The stock was sold at an average price of $97.05, for a total transaction of $95,691.30. Following the completion of the sale, the senior vice president owned 8,565 shares of the company's stock, valued at approximately $831,233.25. This trade represents a 10.32% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jennifer Honeycutt sold 7,098 shares of the business's stock in a transaction dated Friday, October 23rd. The stock was sold at an average price of $105.00, for a total value of $745,290.00. Following the transaction, the chief executive officer owned 120,060 shares of the company's stock, valued at approximately $12,606,300. The trade was a 5.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.43% of the company's stock.

Institutional Investors Weigh In On Veralto

Several hedge funds have recently bought and sold shares of VLTO. First Trust Advisors LP raised its position in Veralto by 31.5% during the first quarter. First Trust Advisors LP now owns 6,150,388 shares of the company's stock valued at $543,817,000 after purchasing an additional 1,472,304 shares in the last quarter. Amundi lifted its stake in Veralto by 16.3% during the first quarter. Amundi now owns 3,797,526 shares of the company's stock worth $335,785,000 after purchasing an additional 531,478 shares during the last quarter. Bank of New York Mellon Corp purchased a new position in shares of Veralto in the 2nd quarter worth about $235,200,000. Janus Henderson Group PLC boosted its holdings in shares of Veralto by 3.4% in the 1st quarter. Janus Henderson Group PLC now owns 2,095,393 shares of the company's stock worth $185,266,000 after purchasing an additional 69,578 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its position in shares of Veralto by 16.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,788,026 shares of the company's stock valued at $158,063,000 after purchasing an additional 252,267 shares during the last quarter. 91.28% of the stock is currently owned by institutional investors.

Veralto Price Performance

The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.61 and a current ratio of 1.78. The stock has a market capitalization of $27.65 billion, a P/E ratio of 28.52, a price-to-earnings-growth ratio of 2.91 and a beta of 0.62. The firm has a 50-day moving average price of $97.98 and a 200 day moving average price of $93.08.

About Veralto

Veralto Corporation NYSE: VLTO is a global provider of technology, products and services that help customers manage water quality and improve the quality, safety and efficiency of packaged goods. The company serves municipal, industrial, commercial and consumer-facing markets through a portfolio of operating businesses.

Veralto's Water Quality segment provides instruments, software and services used to test, monitor and treat water and wastewater. Its brands include Hach, Trojan Technologies and ChemTreat, which support applications such as laboratory and field testing, disinfection, water treatment and industrial water management.

The company's Product Quality & Innovation segment supplies technologies used in product identification, packaging design, color management and quality inspection.

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