Enersys (NYSE:ENS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Thursday.

According to Zacks, “EnerSys’ shares have yielded a negative return over the past six months, comparing unfavorably to the industry’s average positive return. Volatility in the cost of commodities (particularly lead) has weighed upon the company’s profitability in recent times. To combat the lead price rise, EnerSys has already initiated price increases but its taking much longer than expected for the results to show. In addition, currency fluctuations and stiff competition in the industry are also eroding the company’s profits. EnerSys is in the midst of a transformation, wherein it has been undertaking multiple long-term investments to boost growth. However, these efforts are impacting the company’s gross profit percentage adversely in the near-term. Despite these negatives, EnerSys’ dominant position in the lead-acid battery market, diligent cost reduction efforts and financial health add to its strength.”

Several other research firms have also issued reports on ENS. Sidoti raised Enersys from a “neutral” rating to a “buy” rating and set a $83.00 target price on the stock in a report on Thursday, August 17th. Oppenheimer Holdings, Inc. reissued a “buy” rating and set a $82.00 target price (down from $92.00) on shares of Enersys in a report on Wednesday, August 9th. BidaskClub lowered Enersys from a “sell” rating to a “strong sell” rating in a report on Friday, August 18th. Finally, ValuEngine lowered Enersys from a “buy” rating to a “hold” rating in a report on Saturday, August 26th. Two equities research analysts have rated the stock with a sell rating, one has assigned a hold rating and two have assigned a buy rating to the company’s stock. Enersys has a consensus rating of “Hold” and an average price target of $80.00.

Enersys (NYSE:ENS) last issued its quarterly earnings data on Wednesday, August 9th. The industrial products company reported $1.12 EPS for the quarter, missing analysts’ consensus estimates of $1.13 by ($0.01). Enersys had a net margin of 6.86% and a return on equity of 18.90%. The firm had revenue of $622.60 million during the quarter, compared to analyst estimates of $615.77 million. During the same period in the prior year, the company earned $1.14 earnings per share. The business’s quarterly revenue was up 3.7% compared to the same quarter last year.

Enersys announced that its board has authorized a stock repurchase plan on Wednesday, August 9th that allows the company to repurchase $100.00 million in outstanding shares. This repurchase authorization allows the industrial products company to purchase up to 3.2% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s leadership believes its stock is undervalued.

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A number of large investors have recently added to or reduced their stakes in ENS. Janus Henderson Group PLC acquired a new stake in Enersys in the second quarter valued at about $116,256,000. Boston Partners raised its position in Enersys by 47.8% in the second quarter. Boston Partners now owns 2,676,099 shares of the industrial products company’s stock valued at $193,884,000 after purchasing an additional 866,056 shares during the last quarter. Vaughan Nelson Investment Management L.P. bought a new position in Enersys in the second quarter valued at about $41,347,000. Vanguard Group Inc. raised its position in Enersys by 9.4% in the first quarter. Vanguard Group Inc. now owns 3,710,902 shares of the industrial products company’s stock valued at $292,939,000 after purchasing an additional 318,032 shares during the last quarter. Finally, Koch Industries Inc. bought a new position in Enersys in the second quarter valued at about $302,000. 93.35% of the stock is currently owned by institutional investors and hedge funds.

Enersys Company Profile

EnerSys is a manufacturer, marketer and distributor of industrial batteries. The Company manufactures, markets and distributes related products, such as chargers, power equipment, outdoor cabinet enclosures and battery accessories, and provides related after-market and customer-support services for industrial batteries.

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