Rockwell Automation (NYSE:ROK) Shares Gap Up on Better-Than-Expected Earnings

Rockwell Automation, Inc. (NYSE:ROK - Get Free Report)'s share price gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $253.05, but opened at $280.00. Rockwell Automation shares last traded at $278.46, with a volume of 534,488 shares changing hands.

The industrial products company reported $2.45 EPS for the quarter, topping analysts' consensus estimates of $2.09 by $0.36. The company had revenue of $2 billion during the quarter, compared to the consensus estimate of $1.97 billion. Rockwell Automation had a net margin of 11.38% and a return on equity of 30.17%. The firm's revenue for the quarter was down 5.9% compared to the same quarter last year. During the same period last year, the firm earned $2.50 EPS.

Rockwell Automation Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 10th. Stockholders of record on Monday, May 19th will be paid a $1.31 dividend. The ex-dividend date is Monday, May 19th. This represents a $5.24 annualized dividend and a dividend yield of 1.78%. Rockwell Automation's dividend payout ratio is currently 65.99%.

Analyst Upgrades and Downgrades

ROK has been the topic of several recent analyst reports. JPMorgan Chase & Co. raised Rockwell Automation from an "underweight" rating to a "neutral" rating and boosted their price target for the company from $201.00 to $271.00 in a research note on Thursday. Robert W. Baird upped their target price on shares of Rockwell Automation from $305.00 to $315.00 and gave the stock an "outperform" rating in a report on Tuesday, February 11th. BNP Paribas upgraded shares of Rockwell Automation from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, April 9th. Oppenheimer boosted their price target on shares of Rockwell Automation from $258.00 to $304.00 and gave the company an "outperform" rating in a research report on Thursday. Finally, Barclays boosted their target price on Rockwell Automation from $260.00 to $283.00 and gave the stock an "equal weight" rating in a report on Thursday. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating, nine have assigned a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $308.37.

Insiders Place Their Bets

In other Rockwell Automation news, SVP Matheus De A. G. Viera Bulho sold 293 shares of the company's stock in a transaction that occurred on Wednesday, April 2nd. The stock was sold at an average price of $257.68, for a total transaction of $75,500.24. Following the completion of the transaction, the senior vice president now owns 1,922 shares of the company's stock, valued at $495,260.96. This represents a 13.23 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Isaac Woods sold 876 shares of Rockwell Automation stock in a transaction that occurred on Friday, February 28th. The shares were sold at an average price of $284.03, for a total transaction of $248,810.28. Following the completion of the sale, the vice president now owns 1,057 shares in the company, valued at $300,219.71. This trade represents a 45.32 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 4,250 shares of company stock worth $1,223,428 over the last ninety days. 0.68% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in ROK. Meiji Yasuda Asset Management Co Ltd. increased its position in shares of Rockwell Automation by 0.9% in the fourth quarter. Meiji Yasuda Asset Management Co Ltd. now owns 3,775 shares of the industrial products company's stock valued at $1,079,000 after acquiring an additional 33 shares during the last quarter. Whittier Trust Co. increased its position in shares of Rockwell Automation by 1.9% during the 4th quarter. Whittier Trust Co. now owns 1,896 shares of the industrial products company's stock worth $542,000 after purchasing an additional 35 shares during the last quarter. Bank Pictet & Cie Europe AG raised its stake in shares of Rockwell Automation by 0.9% during the 4th quarter. Bank Pictet & Cie Europe AG now owns 4,195 shares of the industrial products company's stock worth $1,199,000 after purchasing an additional 38 shares in the last quarter. Lake Street Advisors Group LLC boosted its holdings in shares of Rockwell Automation by 3.0% in the 4th quarter. Lake Street Advisors Group LLC now owns 1,351 shares of the industrial products company's stock valued at $386,000 after buying an additional 39 shares during the last quarter. Finally, Fortitude Advisory Group L.L.C. grew its stake in shares of Rockwell Automation by 3.8% in the fourth quarter. Fortitude Advisory Group L.L.C. now owns 1,082 shares of the industrial products company's stock valued at $309,000 after buying an additional 40 shares in the last quarter. Institutional investors own 75.75% of the company's stock.

Rockwell Automation Stock Performance

The company has a quick ratio of 0.72, a current ratio of 1.08 and a debt-to-equity ratio of 0.72. The stock's fifty day moving average is $251.89 and its two-hundred day moving average is $273.72. The firm has a market capitalization of $33.34 billion, a price-to-earnings ratio of 36.72, a P/E/G ratio of 3.53 and a beta of 1.32.

About Rockwell Automation

Rockwell Automation, Inc provides industrial automation and digital transformation solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through three segments, Intelligent Devices, Software & Control, and Lifecycle Services. Its solutions include hardware and software products and services.