Vontier Corporation (NYSE:VNT) achieved a significant milestone by reaching a new 52-week high during trading on August 4, 2023. The stock peaked at $43.88 before closing at $43.18, with a trading volume of 197,091 shares. This marks a notable increase from its previous closing price of $43.52.
The surge in Vontier’s stock price has attracted attention from analysts, leading to several upgrades and positive ratings. Wall Street Zen elevated Vontier from a “buy” to a “strong-buy” rating in a research report published on August 2. Following this, Barclays reaffirmed an “overweight” rating on August 4, and UBS Group raised its price target from $47.00 to $50.00 while maintaining a “buy” rating on August 5. Citigroup also reissued a “buy” rating with an increased price objective of $45.00 on July 14. Additionally, Argus upgraded the stock from “hold” to “buy” with a target of $47.00 on August 5.
Currently, the consensus among analysts reflects a rating of “Moderate Buy,” with an average price target of $47.50. This includes one analyst rating the stock as a Strong Buy, six as Buy, and two as Hold.
Financial Performance and Projections
In its recent quarterly earnings report released on July 31, 2023, Vontier reported $0.79 earnings per share (EPS), surpassing the consensus estimate of $0.72 by $0.07. The company achieved a net margin of 12.99% and a return on equity of 41.96%, with quarterly revenue reaching $773.50 million, exceeding expectations of $734.23 million. This represents an annual revenue increase of 11.1% compared to the same quarter last year.
Vontier has provided guidance for fiscal year 2025, estimating an EPS between 3.100 and 3.200, with Q3 2025 guidance set at 0.740 to 0.780 EPS. Analysts project that Vontier will post 3.13 EPS for the current fiscal year.
The company also announced a quarterly dividend, which is scheduled to be paid on September 25, 2023. Shareholders of record on September 4 will receive a dividend of $0.025, translating to an annualized dividend of $0.10 with a yield of 0.2%. The ex-dividend date is also September 4, and Vontier currently maintains a dividend payout ratio of 3.80%.
Institutional Investment Trends
Recent trading activity has seen several institutional investors adjusting their stakes in Vontier. Deutsche Bank AG increased its stake by 4.4% during the fourth quarter, now holding 14,379 shares valued at approximately $524,000 after acquiring an additional 604 shares. Lazard Asset Management LLC also entered a new position valued at $73,000, while Vident Advisory LLC bought into Vontier for about $424,000.
UBS Asset Management Americas LLC raised its holdings by 13.4%, now owning 521,525 shares worth $19,020,000 after purchasing an additional 61,690 shares. Mackenzie Financial Corp also grew its stake by 0.8% to 2,540,329 shares valued at approximately $92,646,000. Overall, institutional investors currently own approximately 95.83% of Vontier’s stock.
Vontier Corporation specializes in providing mobility ecosystem solutions across various segments, including Mobility Technologies, Repair Solutions, and Environmental and Fueling Solutions. The company’s services encompass digital equipment solutions, payment systems, workflow automation, telematics, and integrated solutions for alternative fuel dispensing.
As Vontier continues to demonstrate growth and attract positive analyst ratings, investors will be keenly watching how the company navigates its upcoming financial periods and market conditions.
