Hill-Rom (HRC) Rating Increased to Buy at Zacks Investment Research

Hill-Rom (NYSE:HRC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Thursday. The firm presently has a $99.00 target price on the medical technology company’s stock. Zacks Investment Research‘s target price suggests a potential upside of 12.36% from the company’s current price.

According to Zacks, “Hill-Rom has been witnessing an increase in revenues on strong international growth. The company is currently focused on gaining traction in the untapped international market on successful execution of its strategy, courtesy its efficient international team and organizational realignment. The company is focusing on product innovation through research and development. A slew of product launches in the fourth quarter is encouraging. Moreover, an improvement in adjusted and operating margin buoys optimism. Overall, Hill-Rom has outperformed the broader industry in the past three months. On the flip side, a decline in revenues at the Patient Support Systems segment is quite disappointing. Also, foreign exchange and a tough competitive landscape remain headwinds.”

A number of other equities research analysts have also issued reports on HRC. KeyCorp reaffirmed a “buy” rating and set a $97.00 price objective on shares of Hill-Rom in a report on Thursday. Needham & Company LLC reaffirmed a “buy” rating and set a $105.00 price objective (up from $90.00) on shares of Hill-Rom in a report on Tuesday. Barclays reaffirmed a “buy” rating and set a $100.00 price objective on shares of Hill-Rom in a report on Wednesday, January 10th. Morgan Stanley lowered shares of Hill-Rom from an “overweight” rating to an “equal weight” rating in a report on Tuesday, January 2nd. They noted that the move was a valuation call. Finally, Raymond James Financial raised shares of Hill-Rom from a “market perform” rating to an “outperform” rating and set a $94.00 price objective for the company in a report on Wednesday, January 3rd. Five research analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. Hill-Rom presently has an average rating of “Buy” and a consensus target price of $95.38.

Hill-Rom (NYSE:HRC) traded up $1.92 during trading on Thursday, reaching $88.11. 633,000 shares of the company traded hands, compared to its average volume of 534,655. The stock has a market cap of $5,760.00, a price-to-earnings ratio of 44.28, a price-to-earnings-growth ratio of 1.52 and a beta of 1.19. Hill-Rom has a one year low of $57.18 and a one year high of $88.91. The company has a quick ratio of 1.34, a current ratio of 1.77 and a debt-to-equity ratio of 1.55.

Hill-Rom (NYSE:HRC) last released its earnings results on Friday, November 3rd. The medical technology company reported $1.32 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.27 by $0.05. Hill-Rom had a net margin of 4.87% and a return on equity of 20.27%. The company had revenue of $738.30 million during the quarter, compared to analyst estimates of $731.10 million. During the same period in the prior year, the firm posted $1.18 EPS. The firm’s quarterly revenue was up 4.6% compared to the same quarter last year. analysts predict that Hill-Rom will post 4.37 EPS for the current fiscal year.

In other news, SVP Paul Sherwood Johnson sold 1,000 shares of the stock in a transaction that occurred on Wednesday, December 13th. The stock was sold at an average price of $82.99, for a total transaction of $82,990.00. Following the completion of the transaction, the senior vice president now directly owns 1,066 shares in the company, valued at approximately $88,467.34. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO John J. Greisch sold 125,241 shares of the stock in a transaction that occurred on Friday, December 15th. The shares were sold at an average price of $82.59, for a total value of $10,343,654.19. Following the transaction, the chief executive officer now owns 280,851 shares of the company’s stock, valued at $23,195,484.09. The disclosure for this sale can be found here. Insiders have sold a total of 226,241 shares of company stock valued at $18,708,644 over the last quarter. Corporate insiders own 2.20% of the company’s stock.

Hedge funds and other institutional investors have recently bought and sold shares of the company. Seven Eight Capital LP bought a new position in shares of Hill-Rom during the 2nd quarter valued at approximately $127,000. Citigroup Inc. lifted its position in Hill-Rom by 21.1% in the second quarter. Citigroup Inc. now owns 2,483 shares of the medical technology company’s stock worth $198,000 after buying an additional 433 shares during the last quarter. DekaBank Deutsche Girozentrale lifted its position in Hill-Rom by 101.0% in the third quarter. DekaBank Deutsche Girozentrale now owns 2,720 shares of the medical technology company’s stock worth $204,000 after buying an additional 1,367 shares during the last quarter. Fox Run Management L.L.C. bought a new stake in Hill-Rom in the third quarter worth $207,000. Finally, CAPROCK Group Inc. bought a new stake in Hill-Rom in the fourth quarter worth $211,000. Hedge funds and other institutional investors own 81.92% of the company’s stock.

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About Hill-Rom

Hill-Rom Holdings, Inc is a global medical technology company. The Company operates through four segments: North America Patient Support Systems, International Patient Support Systems, Front Line Care and Surgical Solutions. The Company’s products and services include Patient Support Systems, Front Line Care and Surgical Solutions.

Analyst Recommendations for Hill-Rom (NYSE:HRC)

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