Terex (TEX) Upgraded to Strong-Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Terex (NYSE:TEX) from a hold rating to a strong-buy rating in a report released on Monday morning. The firm currently has $50.00 target price on the industrial products company’s stock.
According to Zacks, “Terex Corporation’s fourth-quarter 2017 adjusted earnings and revenues both improved on a year-over-year basis and also beat the Zacks Consensus Estimate. Improved global markets, operational execution, bookings and backlog in every segment led to the overall improved performance in the quarter. All these factors position the company well for 2018 as well. The company anticipates net sales to be up around 10% year over year in 2018 and earnings per share to be between $2.35 and $2.65. The mid-point of the earnings guidance reflects year-over-year growth of 85%. Terex expects to increase revenues and operating margins in every business segment while continuing to implement the Simplify and Execute to Win elements of its strategy, and follow its disciplined capital allocation strategy. Further, innovative product development and cost-saving initiatives will boost the company’s results.”
Several other equities analysts also recently issued reports on the stock. OTR Global upgraded shares of Terex to a positive rating in a report on Tuesday, December 5th. Robert W. Baird restated a buy rating and set a $52.00 price objective on shares of Terex in a report on Thursday, December 21st. Barclays started coverage on shares of Terex in a report on Tuesday, December 12th. They set an equal weight rating and a $50.00 price objective on the stock. KeyCorp restated a hold rating on shares of Terex in a report on Wednesday, November 1st. Finally, Bank of America cut their price objective on shares of Terex from $42.00 to $40.00 and set an underperform rating on the stock in a report on Wednesday, November 8th. One research analyst has rated the stock with a sell rating, nine have given a hold rating, six have issued a buy rating and two have given a strong buy rating to the stock. Terex currently has a consensus rating of Buy and a consensus price target of $46.00.
Terex (NYSE:TEX) last posted its quarterly earnings data on Wednesday, February 14th. The industrial products company reported $0.33 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.25 by $0.08. Terex had a net margin of 2.95% and a return on equity of 8.80%. The firm had revenue of $1.06 billion for the quarter, compared to the consensus estimate of $999.18 million. sell-side analysts forecast that Terex will post 2.56 EPS for the current year.
Terex declared that its Board of Directors has authorized a stock buyback program on Wednesday, February 7th that allows the company to repurchase $325.00 million in outstanding shares. This repurchase authorization allows the industrial products company to buy shares of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s management believes its shares are undervalued.
The firm also recently declared a quarterly dividend, which will be paid on Monday, March 19th. Investors of record on Friday, March 9th will be issued a $0.10 dividend. This represents a $0.40 annualized dividend and a yield of 0.97%. The ex-dividend date of this dividend is Thursday, March 8th. This is an increase from Terex’s previous quarterly dividend of $0.08. Terex’s dividend payout ratio is 49.23%.
In related news, VP Eric I. Cohen sold 10,121 shares of the stock in a transaction that occurred on Thursday, January 25th. The shares were sold at an average price of $49.90, for a total value of $505,037.90. Following the transaction, the vice president now owns 185,897 shares in the company, valued at approximately $9,276,260.30. The sale was disclosed in a filing with the SEC, which is available through this link. Also, VP Mark I. Clair sold 3,014 shares of the firm’s stock in a transaction that occurred on Wednesday, November 22nd. The stock was sold at an average price of $45.53, for a total transaction of $137,227.42. The disclosure for this sale can be found here. In the last quarter, insiders purchased 987 shares of company stock worth $44,638. 2.50% of the stock is owned by corporate insiders.
Several hedge funds and other institutional investors have recently modified their holdings of the company. PNC Financial Services Group Inc. grew its stake in shares of Terex by 4.7% during the 2nd quarter. PNC Financial Services Group Inc. now owns 5,825 shares of the industrial products company’s stock worth $220,000 after purchasing an additional 262 shares during the period. Legal & General Group Plc grew its stake in shares of Terex by 0.8% during the 3rd quarter. Legal & General Group Plc now owns 172,062 shares of the industrial products company’s stock worth $7,744,000 after purchasing an additional 1,293 shares during the period. Tyers Asset Management LLC grew its stake in shares of Terex by 11.8% during the 4th quarter. Tyers Asset Management LLC now owns 14,084 shares of the industrial products company’s stock worth $679,000 after purchasing an additional 1,484 shares during the period. UBS Asset Management Americas Inc. grew its stake in shares of Terex by 1.6% during the 4th quarter. UBS Asset Management Americas Inc. now owns 105,442 shares of the industrial products company’s stock worth $5,084,000 after purchasing an additional 1,670 shares during the period. Finally, Flinton Capital Management LLC grew its stake in shares of Terex by 11.8% during the 4th quarter. Flinton Capital Management LLC now owns 17,102 shares of the industrial products company’s stock worth $825,000 after purchasing an additional 1,802 shares during the period. 94.09% of the stock is currently owned by institutional investors and hedge funds.
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Terex Company Profile
Terex Corporation is a manufacturer of lifting and material processing products and services that deliver lifecycle solutions. The Company has three business segments: Aerial Work Platforms (AWP), Cranes and Materials Processing (MP). It delivers lifecycle solutions to a range of industries, including the construction, infrastructure, manufacturing, shipping, utility, quarrying and mining industries.
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