Parker-Hannifin Corporation (NYSE: PH) has received a significant upgrade from Wall Street Zen, which has moved its rating from hold to buy. This change reflects growing confidence among analysts regarding the company’s financial performance and prospects.
Analyst Upgrades and Price Targets
In addition to Wall Street Zen’s upgrade, several other equities research firms have recently revised their ratings and price targets for Parker-Hannifin. Citigroup reaffirmed its buy rating and raised its target price from $709.00 to $831.00 in a report published on July 14, 2023. Mizuho set a price objective of $785.00 in a report released on May 16, 2023, while Barclays increased its target from $750.00 to $776.00 and rated the stock as overweight on August 8, 2023. Evercore ISI also reiterated an outperform rating on August 19, 2023, and Stifel Nicolaus adjusted its price target from $717.00 to $726.00, maintaining a hold rating.
Overall, 14 analysts have now rated Parker-Hannifin with a buy rating, while four have assigned a hold rating. According to data from MarketBeat.com, the stock currently holds a consensus rating of “Moderate Buy” with an average target price of $768.71.
Financial Performance Highlights
Parker-Hannifin released its quarterly earnings data on August 7, 2023, reporting earnings per share of $7.69. This figure exceeded analysts’ expectations of $7.08 by $0.61. The company generated revenue of $5.24 billion for the quarter, surpassing the anticipated $5.10 billion.
The company’s net margin was reported at 17.79%, with a return on equity of 26.80%. Year-over-year, revenue saw a modest increase of 1.1%, compared to $6.77 earnings per share during the same quarter last year. Parker-Hannifin has provided guidance for fiscal year 2026, projecting earnings per share between $28.400 and $29.400. Analysts expect the company to achieve earnings of $26.71 per share for the current fiscal year.
In addition to its strong earnings report, Parker-Hannifin announced a quarterly dividend of $1.80 per share, payable on September 12, 2023. Shareholders on record as of September 2, 2023 will receive the dividend, which represents an annualized payout of $7.20 and a yield of 0.9%. The company’s dividend payout ratio currently stands at 26.55%.
Insider Trading Activity
Recent transactions by company insiders have raised some attention. On August 8, 2023, Vice President Robert W. Malone sold 2,257 shares at an average price of $730.66, totaling approximately $1,649,099.62. Following this sale, Malone holds 5,866 shares valued at around $4,286,051.56. This sale represented a 27.79% decrease in his holdings.
Similarly, Vice President Angela R. Ives sold 810 shares on the same day, with the transaction amounting to $589,161.60 at an average price of $727.36. After the sale, Ives retains 2,798 shares worth approximately $2,035,153.28, marking a 22.45% reduction in her stake. Over the past ninety days, insiders have sold a total of 14,039 shares valued at $10,356,566, with insiders currently owning 0.39% of the stock.
Institutional Investor Activity
Institutional investors have been active in adjusting their positions in Parker-Hannifin. Notable acquisitions include Wealth Preservation Advisors LLC, which purchased a new stake valued at about $27,000 in the first quarter, and the Saudi Central Bank, which acquired shares worth approximately $31,000. Other institutional stakeholders include Interchange Capital Partners LLC and Mpwm Advisory Solutions LLC, both of which made new investments during the second quarter.
Currently, institutional investors and hedge funds own approximately 82.44% of Parker-Hannifin’s stock.
Parker-Hannifin Corporation specializes in manufacturing motion and control technologies for various markets, including mobile, industrial, and aerospace sectors. The company operates through two main segments: Diversified Industrial and Aerospace Systems. As it continues to receive favorable ratings and maintain solid financial performance, Parker-Hannifin remains a key player in its industry.
