Rockwell Automation (NYSE:ROK) Sets New 12-Month High - Should You Buy?

Key Points

• Rockwell Automation hit a new 52-week high, trading as high as $473.91 after closing at $459.34 the prior day, reflecting strong recent momentum in the stock.
• The company beat fiscal Q2 earnings and revenue expectations, reporting $3.30 EPS versus $2.88 expected and $2.24 billion in revenue versus $2.16 billion expected, with revenue up 11.9% year over year.
• Analyst sentiment remains mixed but constructive: Rockwell has an average “Moderate Buy” rating and an average price target of $454.05, while the company also announced a $1 billion share buyback and a quarterly dividend of $1.38 per share.

Rockwell Automation, Inc. (NYSE:ROK - Get Free Report)'s share price hit a new 52-week high during trading on Tuesday . The company traded as high as $473.91 and last traded at $463.8370, with a volume of 498217 shares traded. The stock had previously closed at $459.34.

Wall Street Analyst Weigh In

ROK has been the subject of a number of analyst reports. Wall Street Zen downgraded Rockwell Automation from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. Evercore boosted their price objective on Rockwell Automation from $440.00 to $480.00 in a research report on Wednesday, May 6th. BNP Paribas Exane boosted their price objective on Rockwell Automation from $495.00 to $515.00 in a research report on Wednesday, May 6th. KeyCorp boosted their price objective on Rockwell Automation from $470.00 to $510.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Finally, Jefferies Financial Group reissued a "hold" rating and set a $380.00 price objective (down from $490.00) on shares of Rockwell Automation in a research report on Tuesday, March 31st. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and eleven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $454.05.

Rockwell Automation Stock Performance

The firm has a 50 day moving average of $430.53 and a two-hundred day moving average of $407.59. The stock has a market cap of $51.61 billion, a PE ratio of 48.22, a PEG ratio of 2.94 and a beta of 1.57. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.09 and a quick ratio of 0.76.

Rockwell Automation (NYSE:ROK - Get Free Report) last posted its earnings results on Tuesday, May 5th. The industrial products company reported $3.30 earnings per share for the quarter, topping the consensus estimate of $2.88 by $0.42. The firm 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 firm'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 earnings per share. Rockwell Automation has set its FY 2026 guidance at 12.500-13.100 EPS. Research analysts predict that Rockwell Automation, Inc. will post 13.01 EPS for the current fiscal year.

Rockwell Automation Dividend Announcement

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

Rockwell Automation announced that its board has authorized a stock buyback plan 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 plans are typically a sign that the company's management believes its shares are undervalued.

Insiders Place Their Bets

In other news, SVP Christopher Nardecchia sold 2,538 shares of the stock in a transaction that occurred on Tuesday, May 5th. The stock was 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 of the company's stock, valued at approximately $6,353,591.76. This represents a 15.13% decrease in their ownership of the stock. 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 Scott Genereux sold 550 shares of the stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $447.73, for a total value of $246,251.50. Following the completion of the sale, the vice president directly owned 2,764 shares of the company's stock, valued at $1,237,525.72. The trade was a 16.60% decrease in their ownership of the stock. 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. In the last three months, insiders sold 12,308 shares of company stock valued at $5,339,812. 0.76% of the stock is owned by insiders.

Institutional Investors Weigh In On Rockwell Automation

Several large investors have recently modified their holdings of ROK. MV Capital Management Inc. purchased a new stake in shares of Rockwell Automation during the fourth quarter worth approximately $28,000. Manchester Capital Management LLC raised its stake in shares of Rockwell Automation by 97.5% during the fourth quarter. Manchester Capital Management LLC now owns 79 shares of the industrial products company's stock worth $31,000 after purchasing an additional 39 shares during the last quarter. First Horizon Corp purchased a new stake in shares of Rockwell Automation during the fourth quarter worth approximately $32,000. BOK Financial Private Wealth Inc. purchased a new stake in shares of Rockwell Automation during the fourth quarter worth approximately $33,000. Finally, TD Capital Management LLC purchased a new stake in shares of Rockwell Automation during the fourth quarter worth approximately $33,000. 75.75% of the stock is owned by institutional investors and hedge funds.

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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