Applied Industrial Technologies (AIT) Downgraded by Zacks Investment Research

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Zacks Investment Research downgraded shares of Applied Industrial Technologies (NYSE:AIT) from a hold rating to a sell rating in a report published on Wednesday.

According to Zacks, “Over the past three months, Applied Industrial’s shares have underperformed and look overvalued compared to the industry. Material price inflation has been escalating the company’s cost of sales over the past few quarters. Rising cost, if unchecked, will weigh over Applied Industrial’s margins going forward. Also, consolidation of suppliers’ and customers’ industries might hurt Applied Industrial’s financial performance in the near term. Moreover, any supply chain related problem like issues in supply of inputs from contract manufacturers might hurt the company’s near-term sales. Over the past 60 days, Zacks Consensus Estimate for the company’s earnings in fiscal 2019 has been revised downward.”

Several other brokerages have also recently issued reports on AIT. ValuEngine upgraded shares of Applied Industrial Technologies from a hold rating to a buy rating in a report on Wednesday, September 12th. Northcoast Research restated a neutral rating on shares of Applied Industrial Technologies in a report on Friday, August 10th. Wellington Shields upgraded shares of Applied Industrial Technologies from a gradually accumulate rating to a buy rating in a report on Monday, August 13th. Finally, Wells Fargo & Co upped their target price on shares of Applied Industrial Technologies from $73.00 to $80.00 and gave the company a hold rating in a report on Monday, August 13th. One investment analyst has rated the stock with a sell rating, three have given a hold rating and one has assigned a buy rating to the company. Applied Industrial Technologies currently has an average rating of Hold and a consensus target price of $81.50.

Shares of Applied Industrial Technologies stock opened at $70.61 on Wednesday. Applied Industrial Technologies has a 12-month low of $59.65 and a 12-month high of $82.35. The company has a quick ratio of 1.47, a current ratio of 2.45 and a debt-to-equity ratio of 1.16. The firm has a market capitalization of $3.03 billion, a PE ratio of 18.88, a P/E/G ratio of 1.40 and a beta of 0.87.

Applied Industrial Technologies (NYSE:AIT) last issued its earnings results on Friday, August 10th. The industrial products company reported $1.03 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.00 by $0.03. Applied Industrial Technologies had a net margin of 4.61% and a return on equity of 18.34%. The business had revenue of $897.70 million during the quarter, compared to analysts’ expectations of $882.74 million. During the same quarter in the prior year, the business posted $0.78 EPS. The company’s revenue for the quarter was up 135.3% on a year-over-year basis. As a group, research analysts expect that Applied Industrial Technologies will post 4.65 earnings per share for the current year.

In other news, Director L Thomas Hiltz sold 12,500 shares of the company’s stock in a transaction on Monday, August 20th. The shares were sold at an average price of $77.15, for a total value of $964,375.00. Following the completion of the transaction, the director now owns 1,544 shares in the company, valued at approximately $119,119.60. The sale was disclosed in a document filed with the SEC, which is available at this link. Corporate insiders own 3.10% of the company’s stock.

A number of hedge funds have recently added to or reduced their stakes in the stock. Amalgamated Bank raised its position in Applied Industrial Technologies by 13.0% in the 2nd quarter. Amalgamated Bank now owns 6,223 shares of the industrial products company’s stock valued at $437,000 after purchasing an additional 715 shares during the last quarter. Piedmont Investment Advisors LLC raised its position in Applied Industrial Technologies by 9.0% in the 2nd quarter. Piedmont Investment Advisors LLC now owns 9,009 shares of the industrial products company’s stock valued at $632,000 after purchasing an additional 743 shares during the last quarter. LPL Financial LLC raised its position in Applied Industrial Technologies by 28.9% in the 1st quarter. LPL Financial LLC now owns 4,010 shares of the industrial products company’s stock valued at $288,000 after purchasing an additional 900 shares during the last quarter. MetLife Investment Advisors LLC raised its position in Applied Industrial Technologies by 5.5% in the 2nd quarter. MetLife Investment Advisors LLC now owns 17,422 shares of the industrial products company’s stock valued at $1,222,000 after purchasing an additional 903 shares during the last quarter. Finally, Summit Global Investments raised its position in Applied Industrial Technologies by 12.2% in the 2nd quarter. Summit Global Investments now owns 9,200 shares of the industrial products company’s stock valued at $645,000 after purchasing an additional 1,000 shares during the last quarter. Hedge funds and other institutional investors own 89.36% of the company’s stock.

About Applied Industrial Technologies

Applied Industrial Technologies, Inc distributes industrial products in North America, Australia, New Zealand, and Singapore. The company offers its products for maintenance, repair, and operational, as well as original equipment manufacturing customers. It operates in two segments, Service Center Based Distribution, and Fluid Power and Flow Control.

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