Meritor (MTOR) Cut to “Hold” at Zacks Investment Research

Meritor (NYSE:MTOR) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research note issued on Friday.

According to Zacks, “Meritor regularly introduces new products and plans to introduce 20 new products over the next three years. The primary aim of the plan is to grow revenues by 20% above the market. Also, per its M2019 plan, the company aims for new business wins and continues to invest in new products and technologies. Further, it has raised its fiscal 2018 outlook. However, high capital expenditure has led to deteriorating free cash flow and is hampering its profit margins. Also, rising selling, general and administrative expenses, raw material and restructuring costs are other few concerns for the company. In the last three months, Meritor’s shares have underperformed the industry it belongs to.”

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Several other equities research analysts have also recently issued reports on the stock. ValuEngine cut shares of Meritor from a “strong-buy” rating to a “buy” rating in a research report on Monday, April 2nd. Piper Jaffray set a $35.00 price objective on shares of Meritor and gave the company a “buy” rating in a research report on Tuesday, March 13th. Stifel Nicolaus set a $32.00 price objective on shares of Meritor and gave the company a “buy” rating in a research report on Friday, February 9th. Barclays boosted their price objective on shares of Meritor from $25.00 to $27.00 and gave the company an “equal weight” rating in a research report on Thursday, February 1st. Finally, Buckingham Research boosted their price objective on shares of Meritor from $30.00 to $33.00 and gave the company a “buy” rating in a research report on Thursday, February 1st. Five analysts have rated the stock with a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the stock. The company presently has an average rating of “Buy” and a consensus price target of $28.95.

Meritor stock opened at $20.22 on Friday. The stock has a market capitalization of $1,803.32, a price-to-earnings ratio of 9.07 and a beta of 2.57. The company has a debt-to-equity ratio of 2.86, a current ratio of 1.17 and a quick ratio of 0.69. Meritor has a 1 year low of $14.97 and a 1 year high of $29.54.

Meritor (NYSE:MTOR) last released its quarterly earnings data on Wednesday, January 31st. The auto parts company reported $0.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.46 by $0.16. The company had revenue of $903.00 million during the quarter, compared to analysts’ expectations of $836.28 million. Meritor had a net margin of 7.69% and a return on equity of 208.74%. The firm’s quarterly revenue was up 29.2% on a year-over-year basis. During the same period in the previous year, the company earned $0.25 EPS. research analysts expect that Meritor will post 2.71 earnings per share for the current fiscal year.

In other news, SVP Joseph A. Plomin sold 15,826 shares of the company’s stock in a transaction that occurred on Monday, February 26th. The shares were sold at an average price of $25.64, for a total value of $405,778.64. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Chris Villavarayan sold 18,000 shares of the company’s stock in a transaction that occurred on Friday, February 2nd. The stock was sold at an average price of $28.61, for a total transaction of $514,980.00. The disclosure for this sale can be found here. Insiders sold a total of 238,826 shares of company stock valued at $6,439,309 in the last ninety days. Corporate insiders own 2.32% of the company’s stock.

Several institutional investors and hedge funds have recently made changes to their positions in MTOR. Prudential Financial Inc. lifted its position in shares of Meritor by 86.0% in the 3rd quarter. Prudential Financial Inc. now owns 50,643 shares of the auto parts company’s stock worth $1,317,000 after purchasing an additional 23,411 shares during the period. New York State Common Retirement Fund lifted its position in shares of Meritor by 25.3% in the 3rd quarter. New York State Common Retirement Fund now owns 184,463 shares of the auto parts company’s stock worth $4,798,000 after purchasing an additional 37,261 shares during the period. Macquarie Group Ltd. purchased a new stake in shares of Meritor in the 3rd quarter worth approximately $629,000. American International Group Inc. lifted its position in shares of Meritor by 8.1% in the 3rd quarter. American International Group Inc. now owns 56,176 shares of the auto parts company’s stock worth $1,461,000 after purchasing an additional 4,200 shares during the period. Finally, Legal & General Group Plc lifted its position in shares of Meritor by 5.5% in the 3rd quarter. Legal & General Group Plc now owns 113,108 shares of the auto parts company’s stock worth $2,945,000 after purchasing an additional 5,891 shares during the period. 93.48% of the stock is owned by hedge funds and other institutional investors.

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Meritor Company Profile

Meritor, Inc designs, develops, manufactures, markets, distributes, sells, services, and supports integrated systems, modules, and components to original equipment manufacturers (OEMs) and the aftermarket for the commercial vehicle, transportation, and industrial sectors. It operates through two segments, Commercial Truck & Industrial; and Aftermarket & Trailer.

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Analyst Recommendations for Meritor (NYSE:MTOR)

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