Meritor (MTOR) Downgraded by Zacks Investment Research

Zacks Investment Research cut shares of Meritor (NYSE:MTOR) from a hold rating to a sell rating in a report issued on Wednesday.

According to Zacks, “Meritor is witnessing a continuous rise of Selling, general and administrative expenses majorly due to rise in material costs and increased investments to support growth initiatives of its M2019 plan. The continuous rise in expenses might hurt the company’s gross margin figure. Also, high customer concentration and vulnerability to foreign currency fluctuations are other concerns for Meritor. Year to date, shares of Meritor have underperformed the industry it belongs to. However, increased vehicle production in all major markets will aid Meritor to gain new, thus, leading to improved market share.”

Other equities analysts have also recently issued research reports about the stock. Stifel Nicolaus set a $29.00 price target on shares of Meritor and gave the company a buy rating in a research report on Wednesday, August 1st. ValuEngine cut shares of Meritor from a hold rating to a sell rating in a report on Wednesday, July 25th. Piper Jaffray Companies restated a buy rating and issued a $37.00 price objective on shares of Meritor in a report on Wednesday, August 1st. TheStreet upgraded shares of Meritor from a c+ rating to a b- rating in a report on Friday, August 24th. Finally, Barclays restated a hold rating and issued a $22.00 price objective on shares of Meritor in a report on Wednesday, October 17th. Two equities research analysts have rated the stock with a sell rating, one has given a hold rating and five have given a buy rating to the company. Meritor currently has an average rating of Hold and a consensus target price of $29.67.



Shares of NYSE MTOR traded down $0.04 during midday trading on Wednesday, hitting $16.07. 1,192,162 shares of the company traded hands, compared to its average volume of 1,015,262. Meritor has a 12-month low of $15.54 and a 12-month high of $29.54. The company has a debt-to-equity ratio of 2.41, a current ratio of 1.15 and a quick ratio of 0.70. The stock has a market capitalization of $1.39 billion, a P/E ratio of 8.55 and a beta of 2.43.

Meritor (NYSE:MTOR) last announced its quarterly earnings results on Wednesday, August 1st. The auto parts company reported $0.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.78 by $0.11. Meritor had a net margin of 8.06% and a return on equity of 88.32%. The company had revenue of $1.13 billion for the quarter, compared to analysts’ expectations of $1.06 billion. During the same quarter in the previous year, the company earned $0.64 earnings per share. Meritor’s quarterly revenue was up 22.7% on a year-over-year basis. Research analysts anticipate that Meritor will post 2.96 earnings per share for the current year.

In other news, CEO Jeffrey A. Craig sold 34,678 shares of the stock in a transaction that occurred on Thursday, August 2nd. The shares were sold at an average price of $21.84, for a total transaction of $757,367.52. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 2.32% of the company’s stock.

Large investors have recently bought and sold shares of the company. Alps Advisors Inc. lifted its position in Meritor by 21.3% during the third quarter. Alps Advisors Inc. now owns 24,245 shares of the auto parts company’s stock valued at $469,000 after purchasing an additional 4,255 shares during the period. Mutual Advisors LLC lifted its position in Meritor by 10.2% during the second quarter. Mutual Advisors LLC now owns 54,200 shares of the auto parts company’s stock valued at $1,115,000 after purchasing an additional 5,000 shares during the period. Eqis Capital Management Inc. bought a new position in Meritor during the second quarter valued at approximately $203,000. Globeflex Capital L P lifted its position in Meritor by 50.6% during the second quarter. Globeflex Capital L P now owns 35,754 shares of the auto parts company’s stock valued at $735,000 after purchasing an additional 12,017 shares during the period. Finally, Cambridge Investment Research Advisors Inc. bought a new position in Meritor during the second quarter valued at approximately $252,000. Hedge funds and other institutional investors own 89.40% of the company’s stock.

About Meritor

Meritor, Inc designs, develops, manufactures, markets, distributes, sells, services, and supports integrated systems, modules, and components to original equipment manufacturers (OEMs) and the aftermarket for the commercial vehicle, transportation, and industrial sectors. It operates through two segments, Commercial Truck & Industrial; and Aftermarket & Trailer.

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