Dover (DOV) Lowered to “Hold” at Zacks Investment Research

Zacks Investment Research lowered shares of Dover (NYSE:DOV) from a buy rating to a hold rating in a research report sent to investors on Friday morning.

According to Zacks, “Dover expects its adjusted earnings per share for full-year 2018 will be $4.75-$4.85, reflecting 16% year-over-year increase at the mid-point. The company is poised to gain from product digitization, e-commerce, new product development, and inorganic investment in core business platforms. Its strong bookings, cost-reduction initiatives and restructuring programs also remain growth drivers. Further, the spin-off of Apergy will help the company by focusing on less volatile core platforms. However, Dover’s performance will be hurt by concerns in Fluids segment, foreign-exchange volatility and tariffs. Softer demand conditions in retail refrigeration also remain a headwind. Moreover, the stock has underperformed its industry over the past year.”

A number of other analysts have also issued reports on DOV. BMO Capital Markets reduced their target price on Dover to $98.00 and set a positive rating for the company in a report on Monday, June 18th. William Blair restated a market perform rating on shares of Dover in a report on Tuesday, July 3rd. Barclays dropped their price target on shares of Dover from $94.00 to $88.00 and set an overweight rating on the stock in a research note on Monday, July 9th. Citigroup dropped their price target on shares of Dover from $86.00 to $84.00 and set a neutral rating on the stock in a research note on Wednesday, July 11th. Finally, MED started coverage on shares of Dover in a research note on Thursday, July 12th. They issued a hold rating and a $79.00 price target on the stock. Thirteen equities research analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. The stock has an average rating of Hold and a consensus target price of $90.77.

Shares of DOV traded up $0.84 during mid-day trading on Friday, reaching $82.18. The company’s stock had a trading volume of 1,997,904 shares, compared to its average volume of 1,711,858. The firm has a market capitalization of $13.08 billion, a P/E ratio of 20.39, a PEG ratio of 1.53 and a beta of 1.34. Dover has a 1 year low of $70.12 and a 1 year high of $90.26. The company has a quick ratio of 0.93, a current ratio of 1.35 and a debt-to-equity ratio of 1.05.

Dover (NYSE:DOV) last released its earnings results on Thursday, July 19th. The industrial products company reported $1.30 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.21 by $0.09. The company had revenue of $1.80 billion during the quarter, compared to analyst estimates of $1.78 billion. Dover had a return on equity of 18.66% and a net margin of 9.64%. The company’s revenue for the quarter was up 3.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.04 earnings per share. On average, analysts expect that Dover will post 4.82 earnings per share for the current fiscal year.

The business also recently declared a quarterly dividend, which was paid on Monday, September 17th. Stockholders of record on Friday, August 31st were paid a $0.48 dividend. The ex-dividend date was Thursday, August 30th. This is an increase from Dover’s previous quarterly dividend of $0.47. This represents a $1.92 dividend on an annualized basis and a dividend yield of 2.34%. Dover’s dividend payout ratio is 47.64%.

In other news, Director Kristiane C. Graham sold 50,000 shares of the company’s stock in a transaction on Monday, August 6th. The shares were sold at an average price of $82.75, for a total value of $4,137,500.00. Following the transaction, the director now directly owns 367,324 shares of the company’s stock, valued at $30,396,061. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Corporate insiders own 2.60% of the company’s stock.

A number of institutional investors have recently bought and sold shares of DOV. Boston Partners increased its position in Dover by 110.3% during the second quarter. Boston Partners now owns 5,131,152 shares of the industrial products company’s stock worth $375,601,000 after buying an additional 2,691,480 shares during the last quarter. Bank of America Corp DE increased its position in Dover by 15.9% during the second quarter. Bank of America Corp DE now owns 5,304,419 shares of the industrial products company’s stock worth $388,283,000 after buying an additional 726,930 shares during the last quarter. Cornerstone Wealth Management LLC increased its position in Dover by 7,946.7% during the second quarter. Cornerstone Wealth Management LLC now owns 319,697 shares of the industrial products company’s stock worth $4,384,000 after buying an additional 315,724 shares during the last quarter. Schroder Investment Management Group increased its position in Dover by 80.2% during the second quarter. Schroder Investment Management Group now owns 699,811 shares of the industrial products company’s stock worth $50,925,000 after buying an additional 311,500 shares during the last quarter. Finally, Northern Trust Corp increased its position in Dover by 15.2% during the second quarter. Northern Trust Corp now owns 2,323,795 shares of the industrial products company’s stock worth $170,101,000 after buying an additional 306,116 shares during the last quarter. 90.73% of the stock is currently owned by hedge funds and other institutional investors.

Dover Company Profile

Dover Corporation provides equipment and components, specialty systems, consumable supplies, software and digital solutions, and support services worldwide. The company operates in three segments: Engineered Systems, Fluids, and Refrigeration & Food Equipment. The Engineered Systems segment offers precision marking and coding, digital textile printing, soldering and dispensing equipment, and related consumables and services; and automation components, including manual clamps, power clamps, rotary and linear mechanical indexers, conveyors, pick and place units, glove ports, and manipulators, as well as end-of-arm robotic grippers, slides, and end effectors for fast-moving consumer goods, digital textile printing, vehicle service, environmental solutions, and industrials end markets.

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