United Technologies (UTX) Cut to “Hold” at Zacks Investment Research

United Technologies (NYSE:UTX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Friday.

According to Zacks, “Over the past six months, United Technologies’ shares have outperformed the industry. Stronger Aerospace and Commercial Building business will likely continue to boost near-term revenues of the company. On the other hand, improved top-line performances and cost-cutting measures are expected to boost profitability in the quarters ahead. United Technologies is also steadily trying to improve its free cash flow. This company invests in product innovations, acquisitions (like Rockwell Collins) and business development with increased free cash flow generation. However, escalating costs, if not checked, will continue to weigh over the company’s profitability in the quarters ahead. Notably, increased labor costs and high material cost inflation might weigh over the company’s margins in the quarters ahead. Further, the company anticipates that foreign exchange headwind will hurt its segmental operating profits in 2019.”

UTX has been the topic of several other research reports. UBS Group assumed coverage on shares of United Technologies in a research note on Wednesday, August 15th. They set a “buy” rating on the stock. ValuEngine raised shares of United Technologies from a “hold” rating to a “buy” rating in a research note on Tuesday, July 31st. Jefferies Financial Group set a $157.00 price objective on shares of United Technologies and gave the stock a “buy” rating in a research note on Tuesday, July 10th. Royal Bank of Canada reduced their price objective on shares of United Technologies to $148.00 and set an “outperform” rating on the stock in a research note on Wednesday. Finally, Robert W. Baird lifted their price objective on shares of United Technologies from $156.00 to $167.00 and gave the stock a “neutral” rating in a research note on Thursday, September 20th. Five analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company’s stock. United Technologies currently has an average rating of “Buy” and an average target price of $151.90.



Shares of NYSE:UTX traded up $0.13 during trading on Friday, hitting $124.53. 213,247 shares of the company’s stock were exchanged, compared to its average volume of 4,245,106. United Technologies has a 1-year low of $115.40 and a 1-year high of $144.15. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.46 and a quick ratio of 1.10. The stock has a market cap of $101.13 billion, a price-to-earnings ratio of 18.73, a P/E/G ratio of 1.92 and a beta of 0.98.

United Technologies (NYSE:UTX) last issued its quarterly earnings results on Tuesday, October 23rd. The conglomerate reported $1.93 EPS for the quarter, topping the consensus estimate of $1.82 by $0.11. United Technologies had a net margin of 8.09% and a return on equity of 17.53%. The company had revenue of $16.51 billion during the quarter, compared to analysts’ expectations of $16.10 billion. During the same quarter in the previous year, the company earned $1.73 EPS. United Technologies’s revenue was up 9.6% on a year-over-year basis. Equities research analysts anticipate that United Technologies will post 7.23 earnings per share for the current year.

In other United Technologies news, VP Robert J. Bailey sold 828 shares of United Technologies stock in a transaction that occurred on Tuesday, July 31st. The shares were sold at an average price of $134.75, for a total value of $111,573.00. Following the transaction, the vice president now owns 2,000 shares of the company’s stock, valued at $269,500. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.17% of the company’s stock.

Institutional investors and hedge funds have recently made changes to their positions in the business. Credit Agricole S A lifted its stake in United Technologies by 101.4% in the second quarter. Credit Agricole S A now owns 866 shares of the conglomerate’s stock valued at $109,000 after buying an additional 436 shares in the last quarter. Jolley Asset Management LLC bought a new position in United Technologies in the second quarter valued at approximately $114,000. Fort L.P. bought a new position in United Technologies in the second quarter valued at approximately $120,000. WP Advisors LLC bought a new position in United Technologies in the second quarter valued at approximately $126,000. Finally, Kiley Juergens Wealth Management LLC bought a new stake in shares of United Technologies in the second quarter worth $127,000. 81.84% of the stock is currently owned by hedge funds and other institutional investors.

About United Technologies

United Technologies Corporation provides technology products and services to building systems and aerospace industries worldwide. Its Otis segment designs, manufactures, sells, and installs passenger and freight elevators, escalators, and moving walkways; and offers modernization products to upgrade elevators and escalators, as well as maintenance and repair services.

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