Parker-Hannifin Upgraded to Buy as Analysts Raise Price Targets
Shares of Parker-Hannifin Corporation (NYSE: PH) received an upgrade from Wall Street Zen, moving from a hold rating to a buy rating. The upgrade comes as part of a broader trend among equity research analysts, with several firms recently revising their price targets for the company.
On July 14, 2023, Citigroup reaffirmed a buy rating, increasing its price target from $709.00 to $831.00. Following suit, Mizuho established a price objective of $785.00 in a report issued on May 16, 2023. Barclays also raised their target from $750.00 to $776.00, labeling the stock as “overweight” on August 8, 2023. Additionally, Evercore ISI maintained an “outperform” rating, while Stifel Nicolaus raised their price target from $717.00 to $726.00, assigning a hold rating.
According to data from MarketBeat.com, a total of fourteen analysts have assigned a buy rating to Parker-Hannifin, with four issuing a hold rating. The stock currently holds a consensus rating of “Moderate Buy” and an average target price of $768.71.
Strong Earnings Report Boosts Investor Confidence
Parker-Hannifin recently reported its quarterly earnings on August 7, 2023. The industrial products manufacturer announced earnings per share of $7.69, exceeding analysts’ expectations of $7.08 by $0.61. The company recorded quarterly revenue of $5.24 billion, surpassing forecasts of $5.10 billion. This performance reflects a net margin of 17.79% and a return on equity of 26.80%, with revenue growth of 1.1% year-over-year. Last year, during the same quarter, Parker-Hannifin reported earnings per share of $6.77.
The company has also provided guidance for fiscal year 2026, projecting earnings per share between $28.400 and $29.400. Analysts forecast Parker-Hannifin will achieve earnings per share of $26.71 for the current fiscal year.
Dividend Announcement and Insider Activity
In addition to its positive earnings report, Parker-Hannifin announced a quarterly dividend of $1.80 per share, set to be distributed on September 12, 2023. Shareholders of record on September 2, 2023 will receive this dividend, which represents an annualized dividend of $7.20 and a yield of 0.9%. Currently, the company has a dividend payout ratio of 26.55%.
Recent insider trading activity revealed that Robert W. Malone, Vice President, sold 2,257 shares at an average price of $730.66, totaling approximately $1,649,099.62. Following this transaction, Malone holds 5,866 shares valued at around $4,286,051.56. Additionally, Angela R. Ives, another Vice President, sold 810 shares for about $589,161.60 on the same date.
Over the past ninety days, insiders have sold a total of 14,039 shares worth approximately $10,356,566. Currently, insiders hold 0.39% of the company’s stock.
Institutional investors have also shown interest in Parker-Hannifin. During the first quarter, Wealth Preservation Advisors LLC acquired a new stake valued at around $27,000, while Saudi Central Bank invested approximately $31,000. Other firms, including Interchange Capital Partners LLC and Mpwm Advisory Solutions LLC, have made similar investments, contributing to the overall institutional ownership of approximately 82.44% of the company’s stock.
Parker-Hannifin Corporation, a leader in motion and control technologies, operates across various sectors, including mobile, industrial, and aerospace markets. The company is divided into two segments: Diversified Industrial and Aerospace Systems, providing a wide range of products and solutions to ensure operational efficiency and reliability.
