Zacks Investment Research upgraded shares of Terex (NYSE:TEX) from a sell rating to a hold rating in a research report released on Friday morning.
According to Zacks, “Broad-based improvements in Terex’s global markets, operational improvements as well as benefits from its disciplined capital allocation strategy led to the overall upbeat performance. The company raised 2018 adjusted EPS guidance to $2.80-$3.00, reflecting year-over-year growth of 111% at the midpoint. This upbeat outlook can be attributed to strong first-half results, capital-market actions and operational improvements over the balance of 2018. Notably, Terex will gain from focus on the Execute to Win strategy, backlog strength and product development. Over the past year, Terex has underperformed the industry. However, supply-chain challenges in mobile crane operations and higher input costs will affect its results in the near term.”
A number of other analysts have also recently issued reports on the company. Deutsche Bank reaffirmed a sell rating and issued a $34.00 price objective on shares of Terex in a research report on Wednesday, September 5th. UBS Group set a $52.00 price objective on Terex and gave the company a buy rating in a research report on Wednesday, August 22nd. Robert W. Baird raised Terex from an underperform rating to a neutral rating and set a $38.00 price objective for the company in a research report on Monday, August 20th. ValuEngine cut Terex from a hold rating to a sell rating in a research report on Wednesday, August 15th. Finally, Longbow Research started coverage on Terex in a research report on Friday. They issued a neutral rating for the company. Four equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating and seven have given a buy rating to the company’s stock. The company presently has a consensus rating of Hold and a consensus target price of $45.50.
Shares of TEX traded down $1.01 during mid-day trading on Friday, reaching $36.29. The company’s stock had a trading volume of 1,001,262 shares, compared to its average volume of 1,439,297. Terex has a 1-year low of $35.30 and a 1-year high of $50.17. The stock has a market cap of $2.94 billion, a price-to-earnings ratio of 26.88, a PEG ratio of 0.59 and a beta of 1.52. The company has a quick ratio of 1.19, a current ratio of 2.11 and a debt-to-equity ratio of 1.15.
Terex (NYSE:TEX) last released its quarterly earnings data on Tuesday, July 31st. The industrial products company reported $0.98 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.90 by $0.08. Terex had a return on equity of 16.66% and a net margin of 2.91%. The company had revenue of $1.40 billion during the quarter, compared to analysts’ expectations of $1.40 billion. As a group, analysts expect that Terex will post 2.9 earnings per share for the current year.
The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 19th. Investors of record on Friday, November 9th will be issued a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a yield of 1.10%. Terex’s payout ratio is currently 29.63%.
Terex announced that its board has authorized a stock buyback program on Thursday, July 12th that permits the company to buyback $300.00 million in shares. This buyback authorization permits the industrial products company to purchase up to 8.7% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s management believes its stock is undervalued.
In related news, insider Kevin A. Barr sold 10,000 shares of Terex stock in a transaction that occurred on Tuesday, August 28th. The stock was sold at an average price of $39.65, for a total transaction of $396,500.00. Following the completion of the sale, the insider now directly owns 113,908 shares of the company’s stock, valued at approximately $4,516,452.20. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, insider Steve Filipov sold 6,929 shares of Terex stock in a transaction that occurred on Friday, August 31st. The stock was sold at an average price of $38.85, for a total value of $269,191.65. The disclosure for this sale can be found here. Over the last three months, insiders have purchased 1,344 shares of company stock valued at $52,633 and have sold 38,866 shares valued at $1,514,531. Company insiders own 3.50% of the company’s stock.
Hedge funds and other institutional investors have recently made changes to their positions in the business. Aperio Group LLC raised its holdings in Terex by 3.8% in the 2nd quarter. Aperio Group LLC now owns 79,091 shares of the industrial products company’s stock valued at $3,337,000 after acquiring an additional 2,924 shares in the last quarter. Gabelli Funds LLC raised its holdings in Terex by 196.6% in the 2nd quarter. Gabelli Funds LLC now owns 25,800 shares of the industrial products company’s stock valued at $1,089,000 after acquiring an additional 17,100 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS acquired a new position in Terex in the 2nd quarter valued at $822,000. Morgan Stanley raised its holdings in Terex by 2.6% in the 2nd quarter. Morgan Stanley now owns 3,199,629 shares of the industrial products company’s stock valued at $134,992,000 after acquiring an additional 80,932 shares in the last quarter. Finally, Spark Investment Management LLC raised its holdings in Terex by 52.4% in the 2nd quarter. Spark Investment Management LLC now owns 203,100 shares of the industrial products company’s stock valued at $8,568,000 after acquiring an additional 69,800 shares in the last quarter. 98.72% of the stock is owned by hedge funds and other institutional investors.
Terex Corporation manufactures and sells aerial work platforms, cranes, and materials processing machinery worldwide. The company operates through three segments: Aerial Work Platforms (AWP), Cranes, and Material Processing (MP). The AWP segment engages in the design, manufacture, service, and market of AWP equipment, telehandlers, and light towers, as well as related components and replacement parts under the Terex and Genie brands to construct and maintain industrial, commercial, and residential buildings and facilities, and for other commercial operations, as well as used in infrastructure projects.
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