Wall Street Zen Upgrades Ituran Location and Control to Strong-Buy
Ituran Location and Control (NASDAQ: ITRN) received a significant upgrade from Wall Street Zen, moving its rating from “hold” to “strong-buy” in a report released on October 7, 2023. This shift reflects growing confidence in the company’s potential for future performance. Additionally, Weiss Ratings reaffirmed a “buy (B-)” rating for the company on October 8, 2023, further indicating positive market sentiment.
Currently, two research analysts have rated Ituran’s stock with a “buy” designation. According to data from MarketBeat, the company holds a consensus rating of “buy” with a target price of $50.00. This suggests a strong belief among analysts in the company’s growth prospects.
Recent Financial Performance
In its latest quarterly earnings report, released on November 18, 2023, Ituran Location and Control posted earnings per share (EPS) of $0.74. This figure surpassed the consensus estimate of $0.68 by $0.06. The company also reported revenues of $92.28 million for the quarter, exceeding analyst projections of $86.52 million.
The company’s financial health is illustrated by a return on equity of 28.24% and a net margin of 16.35%. Such metrics indicate effective management and robust operational performance.
Ituran Location and Control also declared a quarterly dividend of $0.50 per share, scheduled for payment on January 15, 2024. Shareholders of record by December 29, 2023, will receive this dividend, which translates to an annualized rate of $2.00 and a dividend yield of 5.0%. The ex-dividend date is also set for December 29, 2023, and the company’s current payout ratio stands at 70.42%.
Institutional Investment Activity
Recent trading activity reveals increased interest from institutional investors. For instance, Natixis Advisors LLC expanded its holdings in Ituran by 2.8% during the third quarter, now owning 12,054 shares valued at approximately $431,000. Similarly, Legato Capital Management LLC boosted its position by 8.4%, acquiring an additional 443 shares for a total of 5,698 shares worth about $204,000.
Other notable changes in holdings include Copeland Capital Management LLC, which increased its stake by 33.4%, and Atria Investments Inc, which raised its position by 5.1%. Collectively, institutional investors and hedge funds currently own 94.80% of Ituran’s stock, underscoring strong institutional confidence in the company’s future.
Company Overview
Ituran Location and Control Ltd., along with its subsidiaries, specializes in location-based telematics services and machine-to-machine telematics products. The company operates through two primary segments: Telematics Services and Telematics Products. The services include stolen vehicle recovery, fleet management solutions, and tracking services that allow customers to monitor and protect their assets effectively.
This continued focus on innovation and customer service positions Ituran favorably in a competitive market, making it a company to watch in the coming months.
