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

Zacks Investment Research downgraded shares of Actuant (NYSE:ATU) from a hold rating to a sell rating in a research note published on Monday.

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.”

A number of other research analysts have also recently issued reports on ATU. TheStreet cut Actuant from a b rating to a c rating in a research note on Thursday, September 27th. ValuEngine cut Actuant from a buy rating to a hold rating in a research note on Tuesday, October 16th. BMO Capital Markets decreased their target price on Actuant from $27.00 to $26.00 and set a market perform rating for the company in a research note on Thursday, September 27th. Finally, Wells Fargo & Co decreased their target price on Actuant from $29.00 to $27.00 and set a market perform rating for the company in a research note on Friday, October 19th. Two analysts have rated the stock with a sell rating, five have issued a hold rating and three have given a buy rating to the company. Actuant currently has a consensus rating of Hold and a consensus price target of $28.39.

NYSE ATU opened at $23.99 on Monday. The stock has a market capitalization of $1.48 billion, a P/E ratio of 22.01, a P/E/G ratio of 1.47 and a beta of 1.56. The company has a quick ratio of 1.52, a current ratio of 2.00 and a debt-to-equity ratio of 0.90. 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 EPS for the quarter, beating analysts’ consensus estimates of $0.35 by $0.04. The business had revenue of $301.40 million during the quarter, compared to the consensus estimate of $290.68 million. Actuant had a positive return on equity of 11.78% and a negative net margin of 1.83%. The firm’s revenue was up 9.3% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.19 earnings per share. On average, equities research analysts predict that Actuant will post 1.17 EPS for the current year.

A number of large investors have recently bought and sold shares of ATU. Point72 Hong Kong Ltd acquired a new position in Actuant in the second quarter valued at about $113,000. Tower Research Capital LLC TRC acquired a new position in shares of Actuant during the second quarter worth about $138,000. Cubist Systematic Strategies LLC acquired a new position in shares of Actuant during the second quarter worth about $188,000. Laurion Capital Management LP acquired a new position in shares of Actuant during the second quarter worth about $202,000. Finally, Riverhead Capital Management LLC boosted its position in shares of Actuant by 50.4% during the third quarter. Riverhead Capital Management LLC now owns 7,754 shares of the industrial products company’s stock worth $216,000 after buying an additional 2,600 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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