Applied Industrial Technologies (AIT) Downgraded to Sell at Zacks Investment Research

Zacks Investment Research cut shares of Applied Industrial Technologies (NYSE:AIT) from a hold rating to a sell rating in a research note published on Wednesday.

According to Zacks, “Over the past three months, Applied Industrial’s shares have underperformed and look overvalued compared to the industry. Material price inflation has been escalating the company’s cost of sales over the past few quarters. Rising cost, if unchecked, will weigh over Applied Industrial’s margins going forward. Also, consolidation of suppliers’ and customers’ industries might hurt Applied Industrial’s financial performance in the near term. Moreover, any supply chain related problem like issues in supply of inputs from contract manufacturers might hurt the company’s near-term sales. Over the past 60 days, Zacks Consensus Estimate for the company’s earnings in fiscal 2019 has been revised downward.”

AIT has been the topic of a number of other reports. Wells Fargo & Co upped their price target on shares of Applied Industrial Technologies from $73.00 to $80.00 and gave the stock a hold rating in a research note on Monday, August 13th. Wellington Shields raised shares of Applied Industrial Technologies from a gradually accumulate rating to a buy rating in a research note on Monday, August 13th. ValuEngine raised shares of Applied Industrial Technologies from a hold rating to a buy rating in a research note on Wednesday, September 12th. Finally, Northcoast Research reaffirmed a neutral rating on shares of Applied Industrial Technologies in a research note on Friday, August 10th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and one has assigned a buy rating to the company. The stock presently has a consensus rating of Hold and a consensus price target of $81.50.

Shares of Applied Industrial Technologies stock opened at $70.61 on Wednesday. The firm has a market cap of $3.03 billion, a price-to-earnings ratio of 18.88, a PEG ratio of 1.40 and a beta of 0.87. The company has a quick ratio of 1.47, a current ratio of 2.45 and a debt-to-equity ratio of 1.16. Applied Industrial Technologies has a one year low of $59.65 and a one year high of $82.35.

Applied Industrial Technologies (NYSE:AIT) last announced its quarterly earnings data on Friday, August 10th. The industrial products company reported $1.03 EPS for the quarter, topping the Zacks’ consensus estimate of $1.00 by $0.03. The company had revenue of $897.70 million during the quarter, compared to the consensus estimate of $882.74 million. Applied Industrial Technologies had a net margin of 4.61% and a return on equity of 18.34%. Applied Industrial Technologies’s quarterly revenue was up 135.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.78 EPS. On average, equities research analysts forecast that Applied Industrial Technologies will post 4.65 earnings per share for the current year.

In other news, Director L Thomas Hiltz sold 12,500 shares of the company’s stock in a transaction on Monday, August 20th. The shares were sold at an average price of $77.15, for a total transaction of $964,375.00. Following the transaction, the director now directly owns 1,544 shares of the company’s stock, valued at approximately $119,119.60. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 3.10% of the company’s stock.

Several large investors have recently bought and sold shares of the company. Copper Rock Capital Partners LLC grew its stake in shares of Applied Industrial Technologies by 10.1% during the 3rd quarter. Copper Rock Capital Partners LLC now owns 277,458 shares of the industrial products company’s stock worth $21,767,000 after purchasing an additional 25,527 shares during the period. Verition Fund Management LLC acquired a new position in shares of Applied Industrial Technologies during the 2nd quarter worth $320,000. Jane Street Group LLC acquired a new stake in Applied Industrial Technologies in the 2nd quarter valued at about $283,000. California Public Employees Retirement System grew its stake in Applied Industrial Technologies by 0.9% in the 2nd quarter. California Public Employees Retirement System now owns 126,592 shares of the industrial products company’s stock valued at $8,880,000 after acquiring an additional 1,120 shares during the last quarter. Finally, MetLife Investment Advisors LLC grew its stake in Applied Industrial Technologies by 5.5% in the 2nd quarter. MetLife Investment Advisors LLC now owns 17,422 shares of the industrial products company’s stock valued at $1,222,000 after acquiring an additional 903 shares during the last quarter. 89.36% of the stock is currently owned by institutional investors and hedge funds.

About Applied Industrial Technologies

Applied Industrial Technologies, Inc distributes industrial products in North America, Australia, New Zealand, and Singapore. The company offers its products for maintenance, repair, and operational, as well as original equipment manufacturing customers. It operates in two segments, Service Center Based Distribution, and Fluid Power and Flow Control.

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