Rockwell Automation, Inc. (NYSE:ROK) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analyst sentiment is positive overall: Rockwell Automation has a consensus rating of “Moderate Buy” from 21 analysts, with an average 1-year price target of about $469.33. Ratings include 9 buys, 1 strong buy, and 11 holds.
• Recent earnings topped expectations: The company reported quarterly EPS of $3.30 versus the $2.88 estimate, and revenue of $2.24 billion versus $2.16 billion expected. Revenue rose 11.9% year over year.
• Shareholder returns and capital actions continue: Rockwell announced a quarterly dividend of $1.38 per share and authorized a $1 billion share buyback program. The stock also traded up 0.7% on the day described.

Shares of Rockwell Automation, Inc. (NYSE:ROK - Get Free Report) have earned an average recommendation of "Moderate Buy" from the twenty-one brokerages that are covering the firm, Marketbeat reports. Eleven analysts have rated the stock with a hold recommendation, nine have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price target among brokers that have issued ratings on the stock in the last year is $469.3333.

A number of brokerages have weighed in on ROK. KeyCorp upped their price target on shares of Rockwell Automation from $470.00 to $510.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Wall Street Zen downgraded shares of Rockwell Automation from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Evercore increased their target price on shares of Rockwell Automation from $440.00 to $480.00 in a research note on Wednesday, May 6th. Sanford C. Bernstein started coverage on shares of Rockwell Automation in a research report on Tuesday, June 9th. They issued a "market perform" rating and a $501.00 price target on the stock. Finally, Robert W. Baird upped their price target on Rockwell Automation from $470.00 to $527.00 and gave the company an "outperform" rating in a report on Wednesday, July 1st.

Rockwell Automation Stock Up 0.7%

ROK opened at $461.47 on Friday. The company has a debt-to-equity ratio of 0.72, a quick ratio of 0.76 and a current ratio of 1.09. The company has a market capitalization of $51.35 billion, a PE ratio of 47.97, a P/E/G ratio of 2.92 and a beta of 1.54. The stock's fifty day moving average is $461.67 and its 200-day moving average is $421.76. Rockwell Automation has a one year low of $305.44 and a one year high of $497.36.

Rockwell Automation (NYSE:ROK - Get Free Report) last announced its earnings results on Tuesday, May 5th. The industrial products company reported $3.30 earnings per share for the quarter, beating the consensus estimate of $2.88 by $0.42. The business had revenue of $2.24 billion during the quarter, compared to analysts' expectations of $2.16 billion. Rockwell Automation had a return on equity of 37.54% and a net margin of 12.36%.The company's quarterly revenue was up 11.9% on a year-over-year basis. During the same quarter last year, the business posted $2.45 earnings per share. Rockwell Automation has set its FY 2026 guidance at 12.500-13.100 EPS. On average, equities analysts predict that Rockwell Automation will post 13.06 EPS for the current fiscal year.

Rockwell Automation Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 17th will be issued a $1.38 dividend. This represents a $5.52 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Monday, August 17th. Rockwell Automation's payout ratio is presently 57.38%.

Rockwell Automation declared that its Board of Directors has initiated a share buyback program on Tuesday, June 9th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the industrial products company to repurchase up to 2% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's leadership believes its stock is undervalued.

Insider Activity at Rockwell Automation

In related news, VP Terry L. Riesterer sold 4,024 shares of Rockwell Automation stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $451.97, for a total value of $1,818,727.28. Following the transaction, the vice president owned 134 shares of the company's stock, valued at approximately $60,563.98. This trade represents a 96.78% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Scott Genereux sold 550 shares of the business's stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $447.73, for a total value of $246,251.50. Following the sale, the vice president owned 2,764 shares in the company, valued at approximately $1,237,525.72. The trade was a 16.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 9,361 shares of company stock valued at $4,189,886 over the last ninety days. Company insiders own 0.76% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. MV Capital Management Inc. acquired a new stake in Rockwell Automation during the 4th quarter valued at $28,000. Manchester Capital Management LLC boosted its position in shares of Rockwell Automation by 97.5% in the fourth quarter. Manchester Capital Management LLC now owns 79 shares of the industrial products company's stock worth $31,000 after buying an additional 39 shares during the period. Cassaday & Co Wealth Management LLC purchased a new position in shares of Rockwell Automation during the first quarter valued at $31,000. First Horizon Corp purchased a new position in shares of Rockwell Automation during the fourth quarter valued at $32,000. Finally, BOK Financial Private Wealth Inc. acquired a new position in Rockwell Automation during the fourth quarter valued at $33,000. 75.75% of the stock is owned by hedge funds and other institutional investors.

Rockwell Automation Company Profile

Rockwell Automation is a global industrial automation and digital transformation company headquartered in Milwaukee, Wisconsin. The firm designs, manufactures and supports control systems, industrial control hardware and software, and related services that help manufacturers and industrial operators automate processes, improve productivity and enable data-driven decision making. Rockwell traces its heritage to the Allen-Bradley and Rockwell automation businesses and positions itself as a provider of integrated automation solutions across discrete and process industries.

The company's product portfolio includes programmable logic controllers (PLCs), human-machine interfaces (HMIs), variable frequency drives, sensors, safety components and other industrial control hardware, often marketed under the Allen-Bradley brand.

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