Rockwell Automation (NYSE:ROK) Lowered to "Hold" Rating by Zacks Research

Key Points

• Zacks Research downgraded Rockwell Automation to “Hold” from “Strong Buy,” while the broader analyst consensus is also “Hold,” with nine Buy ratings and twelve Hold ratings and an average price target of $469.33.
• Rockwell reported quarterly EPS of $3.30, beating estimates of $2.88, while revenue rose 11.9% year over year to $2.24 billion. The company’s FY 2026 EPS guidance is $12.50–$13.10.
• The board authorized a $1 billion share-repurchase program, allowing buybacks of up to 2% of outstanding shares; insiders, however, sold 9,361 shares worth about $4.19 million over the past 90 days.

Rockwell Automation (NYSE:ROK - Get Free Report) was downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Thursday,Zacks.com reports. Zacks Research also issued estimates for Rockwell Automation's Q2 2027 earnings at $3.38 EPS, Q3 2027 earnings at $3.64 EPS, Q4 2027 earnings at $3.88 EPS, FY2027 earnings at $13.90 EPS, Q1 2028 earnings at $3.63 EPS, Q2 2028 earnings at $3.86 EPS, Q3 2028 earnings at $4.03 EPS and FY2028 earnings at $16.21 EPS.

Several other research analysts have also recently weighed in on the company. Evercore boosted their price objective on Rockwell Automation from $440.00 to $480.00 in a research report on Wednesday, May 6th. Sanford C. Bernstein began coverage on Rockwell Automation in a research report on Tuesday, June 9th. They set a "market perform" rating and a $501.00 target price for the company. HSBC lifted their target price on Rockwell Automation from $445.00 to $490.00 in a research note on Wednesday, May 6th. DA Davidson began coverage on shares of Rockwell Automation in a report on Tuesday, June 16th. They issued a "neutral" rating and a $500.00 price target on the stock. Finally, The Goldman Sachs Group increased their price target on shares of Rockwell Automation from $448.00 to $487.00 in a research report on Wednesday, May 6th. Nine research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and a consensus target price of $469.33.

Rockwell Automation Trading Up 2.2%

NYSE:ROK opened at $481.31 on Thursday. Rockwell Automation has a 52 week low of $305.44 and a 52 week high of $497.36. The firm has a 50-day moving average price of $465.17 and a two-hundred day moving average price of $424.20. 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 firm has a market cap of $53.56 billion, a price-to-earnings ratio of 50.03, a price-to-earnings-growth ratio of 2.78 and a beta of 1.54.

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, topping analysts' consensus estimates of $2.88 by $0.42. The firm had revenue of $2.24 billion for the quarter, compared to the consensus estimate of $2.16 billion. Rockwell Automation had a return on equity of 37.54% and a net margin of 12.36%.The company's revenue was up 11.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.45 EPS. Rockwell Automation has set its FY 2026 guidance at 12.500-13.100 EPS. On average, equities analysts expect that Rockwell Automation will post 13.06 earnings per share for the current fiscal year.

Rockwell Automation announced that its board has initiated a share buyback program on Tuesday, June 9th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the industrial products company to purchase up to 2% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's board of directors believes its stock is undervalued.

Insider Transactions at Rockwell Automation

In other news, SVP Christopher Nardecchia sold 2,538 shares of the stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $446.43, for a total transaction of $1,133,039.34. Following the completion of the transaction, the senior vice president owned 14,232 shares in the company, valued at approximately $6,353,591.76. This represents a 15.13% decrease in their position. The transaction was disclosed in a legal 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, 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 completion of the sale, the vice president directly owned 134 shares of the company's stock, valued at approximately $60,563.98. This trade represents a 96.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 9,361 shares of company stock valued at $4,189,886. 0.76% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rockwell Automation

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Castle Rock Wealth Management LLC raised its position in shares of Rockwell Automation by 2.2% in the second quarter. Castle Rock Wealth Management LLC now owns 1,038 shares of the industrial products company's stock valued at $501,000 after purchasing an additional 22 shares during the period. Richards Merrill & Peterson Inc. boosted its holdings in Rockwell Automation by 1.9% in the 1st quarter. Richards Merrill & Peterson Inc. now owns 1,358 shares of the industrial products company's stock worth $487,000 after buying an additional 25 shares during the period. Cidel Asset Management Inc. boosted its holdings in Rockwell Automation by 4.6% in the 1st quarter. Cidel Asset Management Inc. now owns 574 shares of the industrial products company's stock worth $206,000 after buying an additional 25 shares during the period. HBK Sorce Advisory LLC boosted its holdings in Rockwell Automation by 0.7% in the 4th quarter. HBK Sorce Advisory LLC now owns 3,719 shares of the industrial products company's stock worth $1,544,000 after buying an additional 27 shares during the period. Finally, Johnson Investment Counsel Inc. grew its stake in Rockwell Automation by 1.9% in the 4th quarter. Johnson Investment Counsel Inc. now owns 1,412 shares of the industrial products company's stock valued at $549,000 after buying an additional 27 shares in the last quarter. Institutional investors own 75.75% of the company's stock.

About Rockwell Automation

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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