Zacks Investment Research Downgrades Colfax (CFX) to Hold
Colfax (NYSE:CFX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Tuesday.
According to Zacks, “We believe that Colfax is poised to benefit from its inorganic initiatives and solid product portfolio. In fourth-quarter 2017, the company's adjusted earnings came in at 45 cents per share, topping the Zacks Consensus Estimate of 44 cents by 2.3%. Net sales grew 7.6% year over year on the back of forex and buyout gains. For 2018, the company anticipates adjusted earnings per share to be within the $2.00-$2.15 range, above $1.74 recorded in 2017. Organic revenue growth is predicted to be flat to up 2%. Restructuring measures will yield at least $25 million in savings. However, we believe that the company's exposure to headwinds from uncertain global economic conditions, unfavorable forex movements and stiff competition might be a concern. In the last three months, the company's shares have underperformed the industry.”
Other research analysts have also issued reports about the stock. Robert W. Baird cut their target price on shares of Colfax from $47.00 to $42.00 and set an “outperform” rating for the company in a research report on Wednesday, February 7th. Seaport Global Securities reiterated a “buy” rating on shares of Colfax in a research report on Wednesday, February 7th. Stifel Nicolaus reiterated a “buy” rating and issued a $44.00 target price on shares of Colfax in a research report on Monday, December 11th. Barclays began coverage on shares of Colfax in a research report on Thursday, February 15th. They issued an “underweight” rating for the company. Finally, KeyCorp cut their price target on shares of Colfax from $46.00 to $44.00 and set an “overweight” rating for the company in a research report on Wednesday, February 7th. Three investment analysts have rated the stock with a sell rating, five have issued a hold rating and nine have assigned a buy rating to the company. The stock currently has a consensus rating of “Hold” and a consensus target price of $44.40.
Colfax (NYSE:CFX) last announced its earnings results on Tuesday, February 6th. The industrial products company reported $0.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.44 by $0.01. Colfax had a net margin of 4.28% and a return on equity of 6.11%. The company had revenue of $874.00 million during the quarter, compared to analyst estimates of $894.02 million. During the same period in the previous year, the business earned $0.46 earnings per share. The firm’s quarterly revenue was up 7.6% compared to the same quarter last year. analysts predict that Colfax will post 2.12 EPS for the current fiscal year.
In other Colfax news, EVP Daniel A. Pryor sold 53,333 shares of the company’s stock in a transaction dated Tuesday, December 19th. The shares were sold at an average price of $38.15, for a total transaction of $2,034,653.95. Following the completion of the sale, the executive vice president now directly owns 93,557 shares in the company, valued at $3,569,199.55. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, SVP A. Lynne Puckett sold 7,270 shares of the company’s stock in a transaction dated Tuesday, January 16th. The shares were sold at an average price of $42.01, for a total transaction of $305,412.70. The disclosure for this sale can be found here. Corporate insiders own 10.60% of the company’s stock.
Several large investors have recently modified their holdings of CFX. Victory Capital Management Inc. raised its stake in shares of Colfax by 54.9% during the fourth quarter. Victory Capital Management Inc. now owns 4,487,041 shares of the industrial products company’s stock valued at $177,776,000 after acquiring an additional 1,589,485 shares during the last quarter. Wells Fargo & Company MN raised its stake in shares of Colfax by 97.2% during the third quarter. Wells Fargo & Company MN now owns 2,959,647 shares of the industrial products company’s stock valued at $123,239,000 after acquiring an additional 1,458,683 shares during the last quarter. Goldman Sachs Group Inc. raised its stake in shares of Colfax by 75.8% during the fourth quarter. Goldman Sachs Group Inc. now owns 1,797,651 shares of the industrial products company’s stock valued at $71,222,000 after acquiring an additional 774,964 shares during the last quarter. Oakview Capital Management L.P. bought a new position in shares of Colfax during the third quarter valued at about $16,570,000. Finally, Wedge Capital Management L L P NC raised its stake in shares of Colfax by 26.1% during the fourth quarter. Wedge Capital Management L L P NC now owns 1,667,364 shares of the industrial products company’s stock valued at $66,061,000 after acquiring an additional 344,946 shares during the last quarter. 76.25% of the stock is owned by hedge funds and other institutional investors.
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Colfax Corporation is an industrial manufacturing and engineering company. The Company provides air and gas handling, and fabrication technology products and services. The Company’s segments include Air and Gas handling, and Fabrication Technology. The Air and Gas Handling segment supplies a range of gas handling products, including heavy-duty centrifugal and axial fans, rotary heat exchangers, gas compressors, pumps and certain related products, as well as aftermarket services.
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