Rockwell Automation (NYSE:ROK) Trading Down 10.9% - Should You Sell?

Key Points

• Rockwell Automation's share price dropped 10.9% on Wednesday, trading as low as $309.30, amid lower trading volumes.
• Several analysts have raised their price targets for Rockwell Automation, with Wells Fargo increasing it to $365.00 and Citigroup to $392.00, indicating a generally positive outlook.
• The company will pay a quarterly dividend of $1.31 on September 10th, with a current yield of 1.6%.

Rockwell Automation, Inc. (NYSE:ROK - Get Free Report)'s share price dropped 10.9% on Wednesday . The stock traded as low as $309.30 and last traded at $308.44. Approximately 616,250 shares were traded during trading, a decline of 33% from the average daily volume of 923,374 shares. The stock had previously closed at $346.00.

Analyst Ratings Changes

A number of research analysts recently weighed in on ROK shares. Wells Fargo & Company lifted their target price on shares of Rockwell Automation from $315.00 to $365.00 and gave the company an "overweight" rating in a research note on Tuesday, July 1st. Loop Capital upped their price target on shares of Rockwell Automation from $280.00 to $290.00 and gave the company a "hold" rating in a report on Thursday, May 15th. Citigroup reiterated a "buy" rating and set a $392.00 price objective (up from $371.00) on shares of Rockwell Automation in a research note on Monday, July 14th. CICC Research initiated coverage on shares of Rockwell Automation in a research report on Monday, July 7th. They set an "outperform" rating and a $381.00 target price for the company. Finally, Stephens reaffirmed an "overweight" rating and issued a $375.00 price target (up previously from $350.00) on shares of Rockwell Automation in a report on Wednesday, July 16th. One investment analyst has rated the stock with a sell rating, five have given a hold rating, twelve have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $341.11.

Rockwell Automation Stock Down 6.6%

The stock has a 50 day moving average price of $335.88 and a 200 day moving average price of $293.37. The company has a market cap of $36.43 billion, a P/E ratio of 40.59, a P/E/G ratio of 3.57 and a beta of 1.39. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.72 and a current ratio of 1.05.

Rockwell Automation (NYSE:ROK - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The industrial products company reported $2.82 earnings per share for the quarter, beating analysts' consensus estimates of $2.67 by $0.15. Rockwell Automation had a return on equity of 30.16% and a net margin of 11.38%. The business had revenue of $2.14 billion during the quarter, compared to analyst estimates of $2.07 billion. During the same quarter last year, the company posted $2.71 EPS. Rockwell Automation's revenue for the quarter was up 4.5% on a year-over-year basis. Research analysts expect that Rockwell Automation, Inc. will post 9.35 earnings per share for the current fiscal year.

Rockwell Automation Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 10th. Shareholders of record on Monday, August 18th will be given a $1.31 dividend. This represents a $5.24 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend is Monday, August 18th. Rockwell Automation's dividend payout ratio is presently 65.99%.

Insider Buying and Selling

In other news, VP Terry L. Riesterer sold 2,500 shares of the stock in a transaction dated Monday, May 12th. The stock was sold at an average price of $304.13, for a total transaction of $760,325.00. Following the transaction, the vice president owned 1,033 shares of the company's stock, valued at approximately $314,166.29. This represents a 70.76% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP Matheus De A. G. Viera Bulho sold 939 shares of the business's stock in a transaction that occurred on Monday, May 12th. The stock was sold at an average price of $304.24, for a total value of $285,681.36. Following the completion of the sale, the senior vice president owned 983 shares of the company's stock, valued at approximately $299,067.92. This trade represents a 48.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 9,757 shares of company stock worth $3,138,220. Insiders own 0.68% of the company's stock.

Institutional Investors Weigh In On Rockwell Automation

Large investors have recently modified their holdings of the stock. Citizens National Bank Trust Department acquired a new position in Rockwell Automation during the 1st quarter valued at about $26,000. Financial Gravity Asset Management Inc. acquired a new position in Rockwell Automation in the 1st quarter worth $31,000. IMA Advisory Services Inc. acquired a new position in shares of Rockwell Automation during the first quarter worth about $32,000. Cooksen Wealth LLC bought a new stake in shares of Rockwell Automation in the first quarter worth $34,000. Finally, Parvin Asset Management LLC acquired a new stake in shares of Rockwell Automation in the 4th quarter valued at approximately $36,000. 75.75% of the stock is currently owned by institutional investors.

Rockwell Automation Company Profile

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.

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