Westwood Holdings Group Inc. has reduced its holdings in Rockwell Automation, Inc. (NYSE: ROK) by 26.7% during the second quarter of 2023. This decline is detailed in Westwood’s recent Form 13F filing with the Securities and Exchange Commission (SEC), revealing the firm now owns 3,575 shares after selling 1,301 shares in the period. At the end of the quarter, these holdings were valued at approximately $1.19 million.
Other institutional investors have also adjusted their positions in Rockwell Automation. Notably, Robeco Institutional Asset Management B.V. significantly increased its stake by 720.8%, acquiring 399,309 shares valued at about $132.64 million after purchasing an additional 350,662 shares. Great Lakes Advisors LLC and Nuveen LLC have also made sizeable investments, with stakes valued at approximately $73.91 million and $63.63 million, respectively.
In total, institutional investors and hedge funds own approximately 75.75% of Rockwell Automation’s stock, highlighting the company’s strong institutional backing.
Analyst Ratings and Recent Stock Performance
Rockwell Automation has been the subject of multiple research reports recently. KeyCorp raised its price target on the stock from $370.00 to $380.00, assigning an “overweight” rating. Oppenheimer followed suit, maintaining an “outperform” rating with a target price of $391.00. Further elevating expectations, JPMorgan Chase & Co. increased its target from $357.00 to $400.00, while Barclays boosted its target to $417.00.
Currently, one investment analyst rates the stock as a Strong Buy, with eleven analysts giving a Buy rating, five holding, and one recommending a Sell. According to MarketBeat.com, Rockwell Automation holds a consensus rating of “Moderate Buy” with an average target price of $364.75.
On the trading front, shares of Rockwell Automation opened at $373.13 on Monday. The stock has seen a 12-month low of $215.00 and a high of $398.20. The company maintains a market capitalization of approximately $41.89 billion and has a P/E ratio of 43.82.
Quarterly Earnings and Dividend Increase
Rockwell Automation released its quarterly earnings results on November 6, 2023, reporting earnings per share (EPS) of $3.34, exceeding analysts’ expectations of $2.94 by $0.40. The company generated revenue of $2.32 billion for the quarter, surpassing forecasts of $2.19 billion. This performance reflects a 13.8% increase in revenue compared to the same period last year, with a net margin of 12.03% and a return on equity of 30.14%.
In addition to strong earnings, Rockwell Automation announced an increase in its quarterly dividend, which will be paid on December 10, 2023. Shareholders of record on November 17, 2023, will receive a dividend of $1.38 per share, up from the previous $1.31. This adjustment reflects an annualized dividend of $5.52 and a yield of 1.5%. The company’s current dividend payout ratio stands at 72.06%.
In insider activity, Senior Vice President Cyril Perducat sold 1,435 shares on August 29, 2023, at an average price of $348.08, totaling $499,494.80. Following the transaction, he retained 3,787 shares valued at approximately $1.32 million, indicating a 27.48% decrease in his ownership. Additionally, Vice President Isaac Woods sold 250 shares at an average of $350.00, resulting in a total of $87,500.00.
Overall, Rockwell Automation continues to demonstrate robust financial performance and investor interest, positioning itself favorably within the industrial automation sector.
