Zacks Investment Research downgraded shares of EnerSys (NYSE:ENS) from a hold rating to a sell rating in a research note released on Monday morning.
According to Zacks, “In the past three months, EnerSys shares have underperformed the industry. Inflation in commodity prices have been hurting the company's financials. Higher spending on lean initiatives, products development and system enhancements such as SAP, sales force and success factors are also weighing on the bottom line. In the past couple of months, the Zacks Consensus Estimate for fiscal 2019 has been decreased, reflecting bearish sentiments. Further, given the company's extensive geographic presence, its financial performance is subject to various risks like foreign currency exchange rate fluctuations, interest rates and economic instability.”
Other analysts have also issued reports about the stock. ValuEngine lowered shares of EnerSys from a buy rating to a hold rating in a report on Friday, February 8th. William Blair upgraded shares of EnerSys from a market perform rating to an outperform rating and set a $71.77 target price for the company in a report on Thursday, December 20th. One analyst has rated the stock with a sell rating, one has assigned a hold rating and four have issued a buy rating to the company’s stock. EnerSys has an average rating of Buy and a consensus target price of $93.55.
EnerSys (NYSE:ENS) last posted its quarterly earnings results on Wednesday, February 6th. The industrial products company reported $1.17 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.24 by ($0.07). EnerSys had a net margin of 7.26% and a return on equity of 16.55%. The business had revenue of $680.00 million for the quarter, compared to analysts’ expectations of $685.80 million. During the same quarter in the previous year, the company earned $1.25 earnings per share. The business’s quarterly revenue was up 3.2% on a year-over-year basis. Sell-side analysts predict that EnerSys will post 4.93 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Friday, March 29th. Stockholders of record on Friday, March 15th will be issued a dividend of $0.175 per share. The ex-dividend date of this dividend is Thursday, March 14th. This represents a $0.70 dividend on an annualized basis and a dividend yield of 1.04%. EnerSys’s dividend payout ratio is currently 15.05%.
In related news, insider Todd M. Sechrist sold 24,039 shares of the stock in a transaction dated Tuesday, February 12th. The shares were sold at an average price of $70.58, for a total value of $1,696,672.62. Following the completion of the transaction, the insider now directly owns 41,244 shares of the company’s stock, valued at $2,911,001.52. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 1.50% of the stock is owned by corporate insiders.
Hedge funds have recently added to or reduced their stakes in the stock. Ffcm LLC raised its stake in EnerSys by 319.6% in the fourth quarter. Ffcm LLC now owns 470 shares of the industrial products company’s stock worth $36,000 after buying an additional 358 shares in the last quarter. Bessemer Group Inc. increased its stake in shares of EnerSys by 1,168.8% during the fourth quarter. Bessemer Group Inc. now owns 977 shares of the industrial products company’s stock valued at $76,000 after purchasing an additional 900 shares in the last quarter. NumerixS Investment Technologies Inc bought a new position in shares of EnerSys during the fourth quarter valued at approximately $91,000. Advisor Group Inc. increased its stake in shares of EnerSys by 21.0% during the fourth quarter. Advisor Group Inc. now owns 2,362 shares of the industrial products company’s stock valued at $183,000 after purchasing an additional 410 shares in the last quarter. Finally, Hartford Investment Management Co. bought a new position in shares of EnerSys during the third quarter valued at approximately $209,000. 94.95% of the stock is owned by institutional investors.
EnerSys manufactures, markets, and distributes industrial batteries. The company offers battery chargers, power equipment, battery accessories, and outdoor cabinet enclosures, as well as related after-market and customer-support services for industrial batteries. It also provides reserve power products that are used for backup power for the continuous operation of critical applications in telecommunications systems, uninterruptible power systems applications for computer and computer-controlled systems, and other specialty power applications, including medical and security systems, premium starting, lighting, and ignition applications, as well as in switchgear, electrical control systems used in electric utilities, large-scale energy storage, energy pipelines, commercial aircraft, satellites, military aircraft, submarines, ships, and tactical vehicles.
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