The share price of Rockwell Automation Inc. (NYSE:ROK) fell to $257.57 per share on Friday from $259.63. While Rockwell Automation Inc. has underperformed by -0.79%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, ROK fell by -25.74%, with highs and lows ranging from $350.98 to $190.08, whereas the simple moving average jumped by 7.78% in the last 200 days.
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On December 12, 2022, BofA Securities Downgraded Rockwell Automation Inc. (NYSE: ROK) to Neutral. A report published by Bernstein on August 17, 2022, Downgraded its rating to ‘Mkt Perform’ for ROK. Bernstein also rated ROK shares as ‘Outperform’, setting a target price of $378 on the company’s shares in an initiating report dated January 11, 2022. Mizuho Initiated an Neutral rating on December 17, 2021, and assigned a price target of $345. Loop Capital initiated its ‘Hold’ rating for ROK, as published in its report on November 17, 2021. Wells Fargo’s report from November 03, 2021 suggests a price prediction of $284 for ROK shares, giving the stock a ‘Underweight’ rating. Oppenheimer also rated the stock as ‘Outperform’.
Analysis of Rockwell Automation Inc. (ROK)
A return on investment can be expected regardless of ROK’s performance over the next quarter with the dividend set at $4.72 per share. Further, the quarter-over-quarter increase in sales is 17.60%, showing a positive trend in the upcoming months.
To gain a thorough understanding of Rockwell Automation Inc.’s future performance, several well-rounded types of analysis and research techniques can be used, with equity being among the most crucial. The goal here is to ensure that your current return on equity of 36.30% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 0.70, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
It is also very valuable to look at average volume as an indicator of volatility for a stock, and ROK is recording an average volume of 712.89K. On a monthly basis, the volatility of the stock is set at 2.21%, whereas on a weekly basis, it is put at 1.50%, with a gain of 0.63% over the past seven days. Furthermore, long-term investors anticipate a median target price of $245.95, showing decline from the present price of $257.57, which can serve as yet another indication of whether ROK is worth investing in or should be passed over.
How Do You Analyze Rockwell Automation Inc. Shares?
A leading company in the Specialty Industrial Machinery sector, Rockwell Automation Inc. (ROK) is based in the USA. When comparing Rockwell Automation Inc. shares with other companies under Industrials, the P/E value is an influential factor to note. This is because it represents an indication of the future growth of the company in terms of investors’ expectations. Ultimately, the value of the latter should demonstrate steady, rapid growth, which is an accurate measure of the company’s progress. In addition to the value of 32.31, there is a growth in quarterly earnings of 334.20%.
The number of employees owning shares of the company should also be considered in addition to the fundamentals. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 0.20%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 82.60% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
Are institutional investors increasing their holdings in ROK shares?
The recent increase in stakes in ROK appears to be a result of several institutional investors and hedge funds increasing their positions. The Vanguard Group, Inc.’s position in ROK has increased by 0.32% in the first quarter. The company now owns 13,021,643 shares of the stock, with a value of $3.44 billion, following the purchase of 41,678 additional shares during the last quarter. BlackRock Fund Advisors made another decreased to its shares in ROK during the first quarter, downing its stake by -0.97%. During the last quarter, the company picked up -54,081 additional shares for a total stake of worth $1.46 billion, bringing number of shares owned by the company to 5,541,823.
During the first quarter, Capital Research & Management Co added a 33,319 position in ROK. SSgA Funds Management, Inc. sold an additional 38852.0 shares in the last quarter, decreasing its holdings by -0.85%, now holding 4.54 million shares worth $1.2 billion. ROK shares are owned by institutional investors to the tune of 82.60% at present.
