Actuant (ATU) Lowered to “Sell” at Zacks Investment Research

Zacks Investment Research cut shares of Actuant (NYSE:ATU) from a hold rating to a sell rating in a report issued on Monday morning.

According to Zacks, “In the past three months, Actuant’s shares underperformed the industry on average. Also, the stock looks overvalued compared to the industry. Escalating commodity, labor and freight costs might continue to weigh over the company’s profitability in the upcoming quarters. Also, the company’s Engineered Solutions segment is witnessing consistent weak performance owing to decline in China-based truck production business. The prevalent weakness in the China truck production business remains another key cause of concern. The analyst community has taken a bearish stance on the company. Notably, over the past couple of months, Zacks Consensus Estimate for the stock has moved south for both fiscal 2019 and fiscal 2018.”

Several other research firms have also issued reports on ATU. TheStreet lowered Actuant from a b rating to a c rating in a research note on Thursday, September 27th. ValuEngine upgraded Actuant from a hold rating to a buy rating in a research note on Tuesday, November 6th. Wells Fargo & Co dropped their price objective on Actuant from $29.00 to $27.00 and set a market perform rating on the stock in a research note on Friday, October 19th. Finally, BMO Capital Markets dropped their price objective on Actuant from $27.00 to $26.00 and set a market perform rating on the stock in a research note on Thursday, September 27th. Two investment analysts have rated the stock with a sell rating, five have given a hold rating and three have given a buy rating to the company. The company presently has an average rating of Hold and an average target price of $28.39.



NYSE:ATU opened at $23.99 on Monday. The company has a debt-to-equity ratio of 0.90, a quick ratio of 1.52 and a current ratio of 2.00. The company has a market capitalization of $1.48 billion, a price-to-earnings ratio of 22.01, a price-to-earnings-growth ratio of 1.47 and a beta of 1.56. Actuant has a 12-month low of $21.50 and a 12-month high of $31.00.

Actuant (NYSE:ATU) last released its quarterly earnings data on Wednesday, September 26th. The industrial products company reported $0.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.35 by $0.04. The firm had revenue of $301.40 million for the quarter, compared to analyst estimates of $290.68 million. Actuant had a positive return on equity of 11.78% and a negative net margin of 1.83%. The business’s revenue for the quarter was up 9.3% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.19 earnings per share. Equities research analysts predict that Actuant will post 1.17 EPS for the current fiscal year.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. increased its stake in shares of Actuant by 3.1% during the third quarter. BlackRock Inc. now owns 8,704,134 shares of the industrial products company’s stock worth $242,846,000 after purchasing an additional 258,071 shares during the period. Vanguard Group Inc. increased its stake in shares of Actuant by 1.7% during the third quarter. Vanguard Group Inc. now owns 6,073,567 shares of the industrial products company’s stock worth $169,454,000 after purchasing an additional 101,101 shares during the period. Pzena Investment Management LLC increased its stake in shares of Actuant by 1.0% during the third quarter. Pzena Investment Management LLC now owns 4,334,688 shares of the industrial products company’s stock worth $120,938,000 after purchasing an additional 44,639 shares during the period. Dimensional Fund Advisors LP increased its stake in shares of Actuant by 2.9% during the second quarter. Dimensional Fund Advisors LP now owns 2,373,321 shares of the industrial products company’s stock worth $69,657,000 after purchasing an additional 67,943 shares during the period. Finally, Frontier Capital Management Co. LLC increased its stake in shares of Actuant by 8.5% during the third quarter. Frontier Capital Management Co. LLC now owns 1,647,906 shares of the industrial products company’s stock worth $45,977,000 after purchasing an additional 128,407 shares during the period.

Actuant Company Profile

Actuant Corporation designs, manufactures, and distributes a range of industrial products and systems worldwide. It operates in two segments, Industrial Tools & Services (IT&S) and Engineered Components & Systems (EC&S). The IT&S segment designs, manufactures, and distributes branded hydraulic and mechanical tools; and provides services and tool rentals to the industrial, maintenance, infrastructure, oil and gas, energy, and other markets.

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