Belden’s (BDC) “Buy” Rating Reiterated at Guggenheim
Belden (NYSE:BDC)‘s stock had its “buy” rating restated by equities researchers at Guggenheim in a note issued to investors on Wednesday. They presently have a $90.00 target price on the industrial products company’s stock. Guggenheim’s price objective would suggest a potential upside of 9.37% from the company’s previous close.
The analysts wrote, “We continue to forecast Q4E showing relatively even ~6%Y/Y growth across each business but its strongest +8%Y/Y growth from Industrial networking (which we continue to consider Belden’s biggest swing-factor from -3%Y/Y in FY16 and -12%Y/Y back in FY15). CFO, Henk Derksen, outlined Belden’s 3yr FY17-20E financial goals including a Revenue CAGR of 5-7%, EBITDA margin of 20-22% (up from previous 18-20% targets), FCF CAGR of 13-15% and ROIC of 13-15%. Capital allocation priorities include a slightly increased 20% for organic investments (e.g., currently spending $15mil capex to expand its manufacturing footprint in India), 25% for share repurchases + dividends, and a slightly decreased 55% for M&A. Belden says it continues to have “excess cash” of $475mil and is pursuing a number of M&A opportunities, with the dry powder for inorganic growth.””
A number of other equities research analysts have also weighed in on the stock. ValuEngine raised shares of Belden from a “hold” rating to a “buy” rating in a report on Monday, September 11th. BidaskClub raised shares of Belden from a “sell” rating to a “hold” rating in a report on Saturday, August 26th. Zacks Investment Research lowered shares of Belden from a “buy” rating to a “hold” rating in a report on Monday, November 6th. Canaccord Genuity reissued a “buy” rating and set a $88.00 price objective (up from $83.00) on shares of Belden in a report on Wednesday, September 13th. Finally, TheStreet lowered shares of Belden from a “b” rating to a “c+” rating in a report on Wednesday, November 1st. Seven analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. The company currently has a consensus rating of “Hold” and an average price target of $89.50.
Belden (BDC) traded down $0.28 on Wednesday, reaching $82.29. 267,893 shares of the company were exchanged, compared to its average volume of 291,038. The firm has a market cap of $3,573.81, a price-to-earnings ratio of 16.55 and a beta of 2.26. Belden has a 1-year low of $64.60 and a 1-year high of $86.85. The company has a debt-to-equity ratio of 1.06, a quick ratio of 1.79 and a current ratio of 2.26.
Belden (NYSE:BDC) last released its quarterly earnings results on Wednesday, November 1st. The industrial products company reported $1.49 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.41 by $0.08. The business had revenue of $621.74 million during the quarter, compared to analyst estimates of $626.05 million. Belden had a net margin of 4.03% and a return on equity of 17.52%. The business’s revenue was up 3.4% on a year-over-year basis. During the same period last year, the business earned $1.29 EPS. analysts forecast that Belden will post 5.52 earnings per share for the current year.
In other news, Chairman John S. Stroup sold 17,227 shares of the firm’s stock in a transaction dated Monday, October 9th. The shares were sold at an average price of $84.75, for a total value of $1,459,988.25. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, SVP Paul Keith Turner sold 3,709 shares of the firm’s stock in a transaction dated Friday, September 15th. The stock was sold at an average price of $78.91, for a total transaction of $292,677.19. Following the completion of the transaction, the senior vice president now owns 4,967 shares in the company, valued at $391,945.97. The disclosure for this sale can be found here. Over the last three months, insiders have sold 21,230 shares of company stock valued at $1,775,189. 1.31% of the stock is owned by company insiders.
Several institutional investors have recently bought and sold shares of the company. Delphi Management Inc. MA lifted its position in shares of Belden by 44.3% in the 3rd quarter. Delphi Management Inc. MA now owns 25,736 shares of the industrial products company’s stock worth $2,073,000 after buying an additional 7,907 shares during the last quarter. California Public Employees Retirement System lifted its position in shares of Belden by 1.1% in the 3rd quarter. California Public Employees Retirement System now owns 84,642 shares of the industrial products company’s stock worth $6,816,000 after buying an additional 942 shares during the last quarter. Ladenburg Thalmann Financial Services Inc. lifted its position in shares of Belden by 550.4% in the 3rd quarter. Ladenburg Thalmann Financial Services Inc. now owns 2,634 shares of the industrial products company’s stock worth $212,000 after buying an additional 2,229 shares during the last quarter. Janus Henderson Group PLC lifted its position in shares of Belden by 3.6% in the 3rd quarter. Janus Henderson Group PLC now owns 5,072,653 shares of the industrial products company’s stock worth $408,501,000 after buying an additional 174,365 shares during the last quarter. Finally, Jane Street Group LLC bought a new position in shares of Belden in the 3rd quarter worth about $410,000.
Belden Inc is a signal transmission solutions provider company. The Company operates through five segment: Broadcast Solutions (Broadcast), Enterprise Connectivity Solutions (Enterprise), Industrial Connectivity Solutions (Industrial Connectivity), Industrial IT Solutions (Industrial IT), and Network Security Solutions (Network Security).
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