Parker-Hannifin Corporation (NYSE:PH) has received positive attention from financial analysts, with Wall Street Zen upgrading its rating from hold to buy. This upgrade was communicated in a research report distributed to investors on Saturday morning. The stock’s momentum is further supported by several other analysts recently raising their price targets.
On July 14, 2023, Citigroup reaffirmed a “buy” rating for Parker-Hannifin and increased its price target from $709.00 to $831.00. Mizuho set a target of $785.00 on May 16, while Barclays raised its target from $750.00 to $776.00 on August 8. Evercore ISI also maintained an “outperform” rating, and Stifel Nicolaus adjusted its target from $717.00 to $726.00, giving the stock a “hold” rating.
Currently, fourteen analysts rate Parker-Hannifin as a buy, while four have assigned it a hold rating. According to data from MarketBeat.com, the stock holds a consensus rating of “Moderate Buy” with an average target price of $768.71.
Strong Earnings Report and Dividend Announcement
Parker-Hannifin recently released its quarterly earnings report on August 7, 2023. The industrial products company reported earnings per share (EPS) of $7.69, exceeding analysts’ expectations of $7.08 by $0.61. The company generated $5.24 billion in revenue for the quarter, surpassing forecasts of $5.10 billion. The net margin stood at 17.79%, with a return on equity of 26.80%. This revenue reflects a year-over-year increase of 1.1%, compared to $6.77 EPS from the same quarter last year. Looking ahead, Parker-Hannifin has set its fiscal year 2026 guidance at EPS between $28.400 and $29.400. Analysts predict that the company will report EPS of $26.71 for the current fiscal year.
In addition to its financial performance, Parker-Hannifin announced a quarterly dividend of $1.80 per share, set to be paid on September 12, 2023. Shareholders of record on September 2, 2023, will receive this dividend, marking an annualized yield of 0.9% and a total payout of $7.20. The company’s dividend payout ratio currently stands at 26.55%.
Insider Transactions and Institutional Activity
Recent insider trading activity has revealed that Vice President Robert W. Malone sold 2,257 shares on August 8, 2023, at an average price of $730.66, totaling approximately $1,649,099.62. Following this transaction, Malone retained 5,866 shares valued at around $4,286,051.56. This sale represents a 27.79% reduction in his holdings. Another insider, Vice President Angela R. Ives, sold 810 shares on the same day for a total of $589,161.60, reducing her position by 22.45%.
In the last ninety days, insiders have sold a total of 14,039 shares, amounting to approximately $10,356,566. Currently, 0.39% of Parker-Hannifin’s stock is held by insiders.
Institutional investors and hedge funds have also been active, with several firms adjusting their stakes in Parker-Hannifin. In the first quarter, Wealth Preservation Advisors LLC purchased a new stake valued at around $27,000, while the Saudi Central Bank acquired shares worth approximately $31,000. Other notable transactions include Interchange Capital Partners LLC and Mpwm Advisory Solutions LLC, both of which acquired new positions valued at $31,000 and $32,000, respectively. Currently, institutional investors and hedge funds collectively hold 82.44% of the company’s stock.
Parker-Hannifin Corporation operates in the motion and control technologies sector, providing solutions for mobile, industrial, and aerospace markets globally. The company is divided into two primary segments: Diversified Industrial and Aerospace Systems, offering a wide range of products and services.
As the company continues to receive favorable ratings and reports strong financial performance, it remains a focal point for investors looking for robust opportunities in the industrial sector.
