Zacks Investment Research cut shares of Hill-Rom (NYSE:HRC) from a buy rating to a hold rating in a research report report published on Tuesday morning.
According to Zacks, “Hill-Rom exited the fiscal 2018 on a strong note with fourth-quarter earnings and revenues beating the respective Zacks Consensus Estimate. Adjusted earnings increased 23% in the quarter, the 13th consecutive quarter of double-digit growth. The company saw a solid increase in revenues on robust domestic growth, driven by a sturdy performance in Patient Support Systems and Front Line Care. The company is currently focusing on product innovation. For the full year, it has achieved more than $300 million as new product revenues. In 2019, the company expects to generate more than $400 million in new product revenue, exceeding its 2020 objective one year in advance. Over the past three months, Hill-Rom outperformed tits industry. On the flip side, international revenues declined with a dip in sales in Asia-Pacific. Also, foreign exchange and a tough competitive landscape remain headwinds.”
HRC has been the topic of several other reports. ValuEngine raised Hill-Rom from a hold rating to a buy rating in a research report on Tuesday, July 31st. Northcoast Research reiterated a buy rating and issued a $104.00 price target on shares of Hill-Rom in a report on Tuesday, July 31st. Raymond James increased their price target on Hill-Rom from $100.00 to $105.00 and gave the company an outperform rating in a report on Monday, November 5th. Morgan Stanley increased their price target on Hill-Rom from $95.00 to $100.00 and gave the company an equal weight rating in a report on Thursday, October 11th. Finally, Barclays initiated coverage on Hill-Rom in a report on Monday, October 15th. They issued an equal weight rating and a $95.00 price target for the company. Three investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company’s stock. Hill-Rom presently has an average rating of Buy and a consensus price target of $100.33.
Hill-Rom (NYSE:HRC) last issued its earnings results on Friday, November 2nd. The medical technology company reported $1.63 earnings per share for the quarter, topping the consensus estimate of $1.51 by $0.12. The business had revenue of $759.20 million for the quarter, compared to analyst estimates of $750.90 million. Hill-Rom had a return on equity of 21.10% and a net margin of 8.86%. The business’s quarterly revenue was up 2.8% on a year-over-year basis. During the same period last year, the company posted $1.32 EPS. Equities research analysts expect that Hill-Rom will post 5.13 EPS for the current year.
The business also recently declared a quarterly dividend, which will be paid on Monday, December 31st. Investors of record on Friday, December 14th will be issued a $0.20 dividend. The ex-dividend date is Thursday, December 13th. This represents a $0.80 annualized dividend and a yield of 0.87%. Hill-Rom’s dividend payout ratio is currently 16.84%.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. BlackRock Inc. grew its stake in Hill-Rom by 0.7% in the second quarter. BlackRock Inc. now owns 6,221,743 shares of the medical technology company’s stock worth $543,406,000 after purchasing an additional 45,084 shares in the last quarter. Bank of Montreal Can grew its stake in Hill-Rom by 0.5% in the third quarter. Bank of Montreal Can now owns 1,708,937 shares of the medical technology company’s stock worth $161,325,000 after purchasing an additional 7,886 shares in the last quarter. Jennison Associates LLC grew its stake in Hill-Rom by 47.0% in the third quarter. Jennison Associates LLC now owns 978,335 shares of the medical technology company’s stock worth $92,355,000 after purchasing an additional 312,771 shares in the last quarter. HealthCor Management L.P. bought a new position in Hill-Rom in the third quarter worth about $76,253,000. Finally, Bank of America Corp DE lifted its holdings in Hill-Rom by 16.8% in the second quarter. Bank of America Corp DE now owns 754,927 shares of the medical technology company’s stock worth $65,936,000 after acquiring an additional 108,831 shares during the last quarter. Hedge funds and other institutional investors own 79.75% of the company’s stock.
Hill-Rom Company Profile
Hill-Rom Holdings, Inc operates as a medical technology company worldwide. It provides medical surgical beds, intensive care unit beds, bariatric patient beds, lifts and other devices, non-invasive therapeutic products and surfaces, and communications technologies and software solutions; and medical equipment management services, as well as sells equipment service contracts for its capital equipment.
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