Parker-Hannifin Corporation (NYSE:PH) received an upgrade from Wall Street Zen, which increased its rating from hold to buy. This change was detailed in a research report released to investors on Saturday, marking a positive shift in sentiment around the industrial products company. Analysts have shown increasing confidence in Parker-Hannifin as several other research firms have also adjusted their ratings and price targets in recent weeks.
Citigroup reaffirmed its buy rating for Parker-Hannifin, raising its price target from $709.00 to $831.00 in a report issued on July 14, 2024. Mizuho set its price objective at $785.00 in a report dated May 16, 2024. Additionally, Barclays elevated its target from $750.00 to $776.00 while maintaining an “overweight” rating in a report released on August 8, 2024. Evercore ISI also reiterated an “outperform” rating on August 19, 2024. Stifel Nicolaus raised its price target from $717.00 to $726.00, assigning a hold rating on the same date.
Overall, fourteen equity research analysts have categorized Parker-Hannifin stock as a buy, while four have given it 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.
Strong Quarterly Performance and Dividends Declared
Parker-Hannifin recently reported its quarterly earnings on August 7, 2024. The company announced earnings per share of $7.69, exceeding analysts’ expectations of $7.08 by $0.61. The firm generated revenue of $5.24 billion for the quarter, surpassing the estimated $5.10 billion. The results reflect a net margin of 17.79% and a return on equity of 26.80%. Compared to the same period last year, revenue saw a modest increase of 1.1%. In the previous year’s quarter, Parker-Hannifin reported earnings of $6.77 per share. For fiscal year 2026, the company has guided earnings per share between $28.400 and $29.400, while analysts anticipate earnings of $26.71 per share for the current fiscal year.
The company also announced a quarterly dividend of $1.80 per share, payable on September 12, 2024. Shareholders on record by September 2, 2024 will receive this dividend, which amounts to an annualized dividend of $7.20 and a yield of 0.9%. Currently, Parker-Hannifin’s dividend payout ratio stands at 26.55%.
Insider Transactions and Institutional Interest
In related corporate actions, Vice President Robert W. Malone sold 2,257 shares on August 8, 2024, at an average price of $730.66, totaling approximately $1,649,099.62. Following this transaction, Malone holds 5,866 shares valued at about $4,286,051.56, representing a 27.79% decrease in his position. Another Vice President, Angela R. Ives, sold 810 shares on the same day for approximately $589,161.60, reducing her stake by 22.45%.
Over the last ninety days, insiders have sold a total of 14,039 shares, valued at around $10,356,566. Currently, insiders own 0.39% of the company’s stock.
Institutional investors have also been active in adjusting their holdings in Parker-Hannifin. Wealth Preservation Advisors LLC acquired a new stake valued at approximately $27,000 in the first quarter. The Saudi Central Bank invested around $31,000 in the same quarter, while Interchange Capital Partners LLC also bought shares worth $31,000 during the second quarter. Other firms, including Mpwm Advisory Solutions LLC and Olde Wealth Management LLC, made similar investments in the company.
Currently, institutional investors and hedge funds collectively own 82.44% of Parker-Hannifin’s stock, indicating strong confidence in the company’s future prospects.
Parker-Hannifin Corporation remains a significant player in the motion and control technologies sector, serving diverse markets across mobile, industrial, and aerospace applications. The company operates through two segments: Diversified Industrial and Aerospace Systems, providing innovative solutions that cater to a wide range of customer needs.
