Zacks Research Issues Optimistic Outlook for ROK Earnings

Key Points

• Zacks Research slightly raised its Q1 2028 EPS estimate for Rockwell Automation to $3.62 from $3.61 and maintained a Strong-Buy rating.
• Rockwell Automation recently beat quarterly expectations, reporting $3.30 EPS on revenue of $2.24 billion, with revenue up 11.9% year over year. The company also reiterated FY2026 guidance of $12.50 to $13.10 EPS.
• Sentiment remains broadly positive, with analysts assigning a Moderate Buy consensus and a $466.71 target price on average. The company also announced a $1 billion share repurchase program and a quarterly dividend of $1.38 per share.

Rockwell Automation, Inc. (NYSE:ROK - Free Report) - Research analysts at Zacks Research raised their Q1 2028 EPS estimates for Rockwell Automation in a report released on Thursday, July 2nd. Zacks Research analyst Team now expects that the industrial products company will post earnings per share of $3.62 for the quarter, up from their previous forecast of $3.61. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Rockwell Automation's current full-year earnings is $13.05 per share.

Several other equities analysts have also commented on ROK. Evercore increased their target price on Rockwell Automation from $440.00 to $480.00 in a report on Wednesday, May 6th. DA Davidson initiated coverage on Rockwell Automation in a research report on Tuesday, June 16th. They set a "neutral" rating and a $500.00 price objective for the company. Morgan Stanley reissued an "overweight" rating and set a $525.00 target price on shares of Rockwell Automation in a research report on Wednesday, May 6th. TD Cowen boosted their target price on Rockwell Automation from $350.00 to $400.00 and gave the stock a "hold" rating in a research note on Wednesday, May 13th. Finally, Wells Fargo & Company upped their price target on Rockwell Automation from $360.00 to $440.00 and gave the company an "equal weight" rating in a report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and eleven have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $466.71.

Rockwell Automation Price Performance

Shares of ROK opened at $463.27 on Tuesday. The firm has a market capitalization of $51.55 billion, a price-to-earnings ratio of 48.17, a PEG ratio of 3.01 and a beta of 1.54. The firm's fifty day simple moving average is $452.22 and its 200-day simple moving average is $414.81. Rockwell Automation has a twelve month low of $305.44 and a twelve month high of $497.36. The company has a current ratio of 1.09, a quick ratio of 0.76 and a debt-to-equity ratio of 0.72.

Rockwell Automation (NYSE:ROK - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The industrial products company reported $3.30 EPS for the quarter, topping the consensus estimate of $2.88 by $0.42. Rockwell Automation had a net margin of 12.36% and a return on equity of 37.54%. The company had revenue of $2.24 billion during the quarter, compared to analysts' expectations of $2.16 billion. During the same quarter in the previous year, the business posted $2.45 EPS. The firm's revenue was up 11.9% on a year-over-year basis. Rockwell Automation has set its FY 2026 guidance at 12.500-13.100 EPS.

Institutional Trading of Rockwell Automation

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Richards Merrill & Peterson Inc. raised its stake in shares of Rockwell Automation by 1.9% during the first quarter. Richards Merrill & Peterson Inc. now owns 1,358 shares of the industrial products company's stock worth $487,000 after purchasing an additional 25 shares during the last quarter. Cidel Asset Management Inc. lifted its stake in shares of Rockwell Automation by 4.6% in the first quarter. Cidel Asset Management Inc. now owns 574 shares of the industrial products company's stock valued at $206,000 after purchasing an additional 25 shares during the period. HBK Sorce Advisory LLC increased its holdings in Rockwell Automation by 0.7% in the fourth quarter. HBK Sorce Advisory LLC now owns 3,719 shares of the industrial products company's stock valued at $1,544,000 after buying an additional 27 shares in the last quarter. Johnson Investment Counsel Inc. lifted its position in shares of Rockwell Automation by 1.9% during the 4th quarter. Johnson Investment Counsel Inc. now owns 1,412 shares of the industrial products company's stock valued at $549,000 after acquiring an additional 27 shares during the period. Finally, Nations Financial Group Inc. IA ADV grew its holdings in shares of Rockwell Automation by 2.0% in the 4th quarter. Nations Financial Group Inc. IA ADV now owns 1,446 shares of the industrial products company's stock worth $563,000 after acquiring an additional 28 shares during the period. 75.75% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, SVP Christopher Nardecchia sold 2,538 shares of the stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $446.43, for a total transaction of $1,133,039.34. Following the completion of the sale, the senior vice president owned 14,232 shares in the company, valued at $6,353,591.76. This represents a 15.13% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP John M. Miller sold 1,054 shares of Rockwell Automation stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $426.02, for a total transaction of $449,025.08. Following the completion of the transaction, the vice president owned 5,615 shares in the company, valued at approximately $2,392,102.30. This represents a 15.80% 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. Insiders have sold 12,009 shares of company stock valued at $5,232,471 in the last 90 days. Company insiders own 0.76% of the company's stock.

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

Rockwell Automation Company Profile

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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