Hill-Rom (HRC) Stock Rating Lowered by Zacks Investment Research

Zacks Investment Research downgraded shares of Hill-Rom (NYSE:HRC) from a buy rating to a hold rating in a research report sent to investors on Wednesday morning. Zacks Investment Research currently has $111.00 target price on the medical technology company’s stock.

According to Zacks, “Over the past three months, Hill-Rom outperformed its industry. The company's adjusted earnings increased 23% in the last reported quarter, marking it as the 13th consecutive quarter of double-digit growth. Hill-Rom 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. 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.”

Several other brokerages have also weighed in on HRC. ValuEngine raised Hill-Rom from a hold rating to a buy rating in a report on Tuesday, November 6th. Raymond James lifted their price objective on Hill-Rom from $100.00 to $105.00 and gave the stock an outperform rating in a report on Monday, November 5th. UBS Group began coverage on Hill-Rom in a report on Tuesday, November 27th. They issued a buy rating and a $115.00 price objective for the company. Morgan Stanley lifted their price objective on Hill-Rom from $95.00 to $100.00 and gave the stock an equal weight rating in a report on Thursday, October 11th. Finally, Barclays began coverage on Hill-Rom in a report on Monday, October 15th. They issued an equal weight rating and a $95.00 price objective for the company. Four equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company’s stock. The company presently has an average rating of Buy and an average target price of $104.00.

Shares of Hill-Rom stock opened at $92.76 on Wednesday. Hill-Rom has a 1 year low of $78.16 and a 1 year high of $99.81. The firm has a market cap of $6.44 billion, a PE ratio of 19.53, a price-to-earnings-growth ratio of 1.33 and a beta of 0.94. The company has a quick ratio of 1.30, a current ratio of 1.74 and a debt-to-equity ratio of 1.11.

Hill-Rom (NYSE:HRC) last announced its quarterly earnings data 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. Hill-Rom had a return on equity of 21.10% and a net margin of 8.86%. The company had revenue of $759.20 million during the quarter, compared to analyst estimates of $750.90 million. During the same quarter last year, the firm posted $1.32 EPS. The firm’s revenue for the quarter was up 2.8% on a year-over-year basis. Equities analysts expect that Hill-Rom will post 5.13 earnings per share for the current fiscal year.

The company also recently disclosed 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. This represents a $0.80 annualized dividend and a yield of 0.86%. The ex-dividend date of this dividend is Thursday, December 13th. Hill-Rom’s dividend payout ratio (DPR) is currently 16.84%.

In other Hill-Rom news, SVP Andreas G. Frank sold 7,454 shares of Hill-Rom stock in a transaction dated Wednesday, November 28th. The stock was sold at an average price of $95.76, for a total transaction of $713,795.04. Following the completion of the transaction, the senior vice president now owns 27,224 shares of the company’s stock, valued at approximately $2,606,970.24. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 1.90% of the stock is owned by insiders.

A number of hedge funds have recently bought and sold shares of HRC. BNP Paribas Arbitrage SA grew its holdings in Hill-Rom by 25.1% during the 2nd quarter. BNP Paribas Arbitrage SA now owns 8,444 shares of the medical technology company’s stock valued at $737,000 after buying an additional 1,696 shares in the last quarter. Eqis Capital Management Inc. bought a new stake in shares of Hill-Rom during the 2nd quarter valued at about $465,000. Aperio Group LLC boosted its position in shares of Hill-Rom by 6.4% during the 2nd quarter. Aperio Group LLC now owns 26,266 shares of the medical technology company’s stock valued at $2,294,000 after acquiring an additional 1,583 shares during the last quarter. Los Angeles Capital Management & Equity Research Inc. bought a new stake in shares of Hill-Rom during the 2nd quarter valued at about $1,485,000. Finally, Victory Capital Management Inc. boosted its position in shares of Hill-Rom by 2.5% during the 2nd quarter. Victory Capital Management Inc. now owns 225,385 shares of the medical technology company’s stock valued at $19,685,000 after acquiring an additional 5,440 shares during the last quarter. 82.59% of the stock is owned by institutional investors and hedge funds.

About Hill-Rom

Hill-Rom Holdings, Inc operates as a medical technology company worldwide. It operates in three segments: Patient Support Systems, Front Line Care, and Surgical Solutions. The company offers medical surgical beds, intensive care unit beds, and bariatric patient beds, lifts and other patient mobility devices, non-invasive therapeutic products and surfaces, and information technologies and software solutions; and medical equipment management services, as well as sells equipment service contracts for its capital equipment.

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