Rockwell Automation (NYSE:ROK) Reaches New 1-Year High - Still a Buy?

Key Points

• Rockwell Automation hit a new 52-week high, trading as high as $489.99, after a recent run that has pushed the stock well above its 50-day and 200-day moving averages.
• Recent earnings were strong, with EPS of $3.30 beating expectations and revenue rising 11.9% year over year to $2.24 billion. The company also raised FY2026 guidance to $12.50–$13.10 EPS.
• Management has been returning capital to shareholders through a $1 billion share repurchase program and a quarterly dividend of $1.38 per share, though insider selling and a Wall Street consensus rating of Hold suggest some caution.

Rockwell Automation, Inc. (NYSE:ROK - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $489.99 and last traded at $486.5340, with a volume of 31361 shares. The stock had previously closed at $482.33.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Jefferies Financial Group reaffirmed a "hold" rating and set a $380.00 target price (down from $490.00) on shares of Rockwell Automation in a research report on Tuesday, March 31st. Argus increased their price target on Rockwell Automation from $465.00 to $530.00 and gave the stock a "buy" rating in a research report on Wednesday, June 24th. Rothschild & Co Redburn raised their price target on Rockwell Automation from $365.00 to $378.00 in a research note on Wednesday, May 6th. Sanford C. Bernstein began coverage on Rockwell Automation in a report on Tuesday, June 9th. They issued a "market perform" rating and a $501.00 price objective for the company. Finally, KeyCorp upped their price objective on shares of Rockwell Automation from $470.00 to $510.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 6th. Ten research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $457.50.

Rockwell Automation Stock Performance

The business has a 50-day moving average price of $446.70 and a 200-day moving average price of $412.75. The firm has a market capitalization of $54.77 billion, a price-to-earnings ratio of 51.19, a P/E/G ratio of 3.05 and a beta of 1.57. The company has a quick ratio of 0.76, a current ratio of 1.09 and a debt-to-equity ratio of 0.72.

Rockwell Automation (NYSE:ROK - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The industrial products company reported $3.30 EPS for the quarter, beating the consensus estimate of $2.88 by $0.42. Rockwell Automation had a return on equity of 37.54% and a net margin of 12.36%.The firm had revenue of $2.24 billion during the quarter, compared to analyst estimates of $2.16 billion. During the same quarter in the prior year, the business posted $2.45 EPS. The business's revenue for the quarter was up 11.9% compared to the same quarter last year. Rockwell Automation has set its FY 2026 guidance at 12.500-13.100 EPS. As a group, sell-side analysts forecast that Rockwell Automation, Inc. will post 13.02 earnings per share for the current year.

Rockwell Automation Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 17th will be issued a $1.38 dividend. This represents a $5.52 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend is Monday, August 17th. Rockwell Automation's dividend payout ratio (DPR) is currently 57.38%.

Rockwell Automation announced that its Board of Directors has authorized a stock repurchase program on Tuesday, June 9th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the industrial products company to reacquire up to 2% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's board believes its shares are undervalued.

Insider Buying and Selling at Rockwell Automation

In related news, SVP Christopher Nardecchia sold 2,538 shares of Rockwell Automation stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $446.43, for a total value of $1,133,039.34. Following the completion of the sale, the senior vice president directly owned 14,232 shares in the company, valued at $6,353,591.76. This trade represents a 15.13% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Matthew W. Fordenwalt sold 377 shares of the business's stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $460.51, for a total transaction of $173,612.27. Following the sale, the senior vice president directly owned 4,437 shares in the company, valued at approximately $2,043,282.87. This represents a 7.83% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 12,308 shares of company stock valued at $5,339,812. Insiders own 0.76% of the company's stock.

Institutional Investors Weigh In On Rockwell Automation

A number of large investors have recently made changes to their positions in the stock. Brighton Jones LLC acquired a new stake in Rockwell Automation during the 4th quarter worth about $281,000. AQR Capital Management LLC increased its holdings in shares of Rockwell Automation by 75.9% in the first quarter. AQR Capital Management LLC now owns 8,139 shares of the industrial products company's stock valued at $2,059,000 after purchasing an additional 3,513 shares during the period. Empowered Funds LLC increased its holdings in shares of Rockwell Automation by 142.7% in the first quarter. Empowered Funds LLC now owns 7,305 shares of the industrial products company's stock valued at $1,887,000 after purchasing an additional 4,295 shares during the period. Acadian Asset Management LLC raised its stake in shares of Rockwell Automation by 233.6% in the first quarter. Acadian Asset Management LLC now owns 1,878 shares of the industrial products company's stock worth $484,000 after purchasing an additional 1,315 shares during the last quarter. Finally, Jump Financial LLC acquired a new stake in shares of Rockwell Automation during the second quarter worth about $868,000. 75.75% of the stock is owned by hedge funds and other institutional investors.

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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