IDEX (IEX) Lowered to “Hold” at Zacks Investment Research

IDEX (NYSE:IEX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Thursday.

According to Zacks, “Year to date, IDEX's shares have outperformed the industry. In third-quarter 2018, the company's earnings and sales surpassed the respective estimates by 7.6% and 1.2%. Segmental businesses flourished on solid orders while margin expanded on higher sales and productivity actions. For 2018, IDEX has raised its earnings per share guidance from $5.27-$5.35 to $5.35-$5.37 range. Organic sales are projected to grow 8% versus 7% predicted earlier. Robust organic growth prospects and synergistic gains from acquired assets will be advantageous for the company in the quarters ahead. However, we believe that rising cost of sales and operating expenses can be detrimental to the company's financials in the quarters ahead. For 2018, the company predicts corporate expenses to be $78-$80 million, higher than the previous forecast of $76-$80 million. Also, forex headwinds are predicted to adversely impact sales by 1% in the fourth quarter of 2018.”

Other research analysts have also recently issued research reports about the stock. Wells Fargo & Co reiterated a “buy” rating and issued a $170.00 price target (up previously from $165.00) on shares of IDEX in a report on Wednesday, July 25th. Janney Montgomery Scott upgraded shares of IDEX from a “neutral” rating to a “buy” rating and set a $149.00 price target for the company in a report on Thursday, October 25th. Stifel Nicolaus upped their price target on shares of IDEX from $149.00 to $150.00 and gave the company a “hold” rating in a report on Monday, October 8th. BMO Capital Markets reiterated a “hold” rating and issued a $150.00 price target on shares of IDEX in a report on Thursday, July 26th. Finally, Oppenheimer reiterated a “hold” rating on shares of IDEX in a report on Wednesday, July 25th. Nine investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. The stock presently has an average rating of “Hold” and a consensus price target of $146.45.

IDEX stock opened at $131.40 on Thursday. The company has a market capitalization of $10.20 billion, a PE ratio of 30.49, a P/E/G ratio of 2.42 and a beta of 1.31. IDEX has a twelve month low of $123.47 and a twelve month high of $157.84. The company has a quick ratio of 2.41, a current ratio of 3.21 and a debt-to-equity ratio of 0.41.

IDEX (NYSE:IEX) last released its quarterly earnings results on Tuesday, October 23rd. The industrial products company reported $1.41 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.31 by $0.10. The company had revenue of $623.00 million during the quarter, compared to analysts’ expectations of $613.94 million. IDEX had a net margin of 16.54% and a return on equity of 20.40%. The business’s quarterly revenue was up 8.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.08 earnings per share. As a group, equities research analysts predict that IDEX will post 5.36 EPS for the current fiscal year.

In other news, VP Michael J. Yates sold 3,143 shares of the business’s stock in a transaction on Monday, August 27th. The shares were sold at an average price of $153.00, for a total value of $480,879.00. Following the sale, the vice president now owns 29,715 shares of the company’s stock, valued at $4,546,395. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, VP Michael J. Yates sold 1,030 shares of the business’s stock in a transaction on Wednesday, August 29th. The stock was sold at an average price of $155.91, for a total transaction of $160,587.30. Following the completion of the sale, the vice president now directly owns 27,602 shares in the company, valued at approximately $4,303,427.82. The disclosure for this sale can be found here. Insiders own 1.20% of the company’s stock.

Hedge funds have recently made changes to their positions in the company. SRS Capital Advisors Inc. lifted its position in shares of IDEX by 83.0% in the second quarter. SRS Capital Advisors Inc. now owns 745 shares of the industrial products company’s stock worth $101,000 after purchasing an additional 338 shares in the last quarter. First Hawaiian Bank bought a new stake in shares of IDEX in the third quarter worth $120,000. Fort L.P. bought a new stake in shares of IDEX in the second quarter worth $118,000. Belpointe Asset Management LLC bought a new stake in shares of IDEX in the third quarter worth $131,000. Finally, Sterling Investment Advisors Ltd. bought a new stake in shares of IDEX in the third quarter worth $151,000. 94.99% of the stock is currently owned by institutional investors and hedge funds.

IDEX Company Profile

IDEX Corporation, through its subsidiaries, operates as an applied solutions company worldwide. The company operates through three segments: Fluid & Metering Technologies (FMT), Health & Science Technologies (HST), and Fire & Safety/Diversified Products (FSDP). The FMT segment designs, produces, and distributes positive displacement pumps, flow meters, injectors, and other fluid-handling pump modules and systems, as well as offers flow monitoring and other services for the food, chemical, general industrial, water and wastewater, agricultural, and energy industries.

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