United Technologies (UTX) Lowered to “Hold” at Zacks Investment Research
According to Zacks, “Strength in commercial and military aftermarket businesses and impressive contribution from its acquired Rockwell Collins business sales will likely boost United Technologies' near-term revenues. Also, improved top line and cost-cutting measures are expected to enhance profitability, going forward. Backed by these positives, the company has given bullish full-year 2019 revenue guidance. In addition, it intends to become more competent on the back of meaningful business acquisitions. Over the past year, the stock has outperformed its industry. However, rising costs of sales remain a concern for the company's gross margin. We believe, if unchecked, higher costs and operating expenses will prove detrimental to United Technologies' margins and profitability. Moreover, increases in debt levels can increase its financial obligations.”
UTX has been the subject of a number of other reports. Barclays decreased their price target on shares of United Technologies from $145.00 to $140.00 and set an overweight rating for the company in a report on Friday, January 11th. Citigroup restated a neutral rating and set a $120.00 price target (down from $125.00) on shares of United Technologies in a report on Thursday, January 3rd. Goldman Sachs Group upgraded shares of United Technologies from a buy rating to a conviction-buy rating and set a $153.00 price target for the company in a report on Friday, February 1st. Bank of America restated a buy rating and set a $185.00 price target on shares of United Technologies in a report on Thursday, January 24th. Finally, OTR Global cut shares of United Technologies to a positive rating in a report on Friday, January 18th. Six research analysts have rated the stock with a hold rating, ten have issued a buy rating and one has given a strong buy rating to the company. The company presently has a consensus rating of Buy and an average price target of $144.00.
United Technologies (NYSE:UTX) last released its quarterly earnings results on Wednesday, January 23rd. The conglomerate reported $1.95 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.53 by $0.42. United Technologies had a net margin of 7.92% and a return on equity of 17.53%. The company had revenue of $18.04 billion during the quarter, compared to analysts’ expectations of $16.87 billion. During the same period in the prior year, the company earned $1.60 earnings per share. The business’s quarterly revenue was up 15.1% compared to the same quarter last year. As a group, equities analysts anticipate that United Technologies will post 7.92 EPS for the current fiscal year.
In related news, VP Robert J. Bailey sold 1,418 shares of the stock in a transaction dated Friday, March 15th. The shares were sold at an average price of $126.20, for a total value of $178,951.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Akhil Johri sold 3,210 shares of the stock in a transaction dated Wednesday, February 20th. The shares were sold at an average price of $128.49, for a total transaction of $412,452.90. Following the completion of the sale, the vice president now owns 62,915 shares of the company’s stock, valued at approximately $8,083,948.35. The disclosure for this sale can be found here. In the last quarter, insiders sold 97,770 shares of company stock valued at $12,153,044. 0.15% of the stock is owned by corporate insiders.
A number of large investors have recently bought and sold shares of the stock. Vanguard Group Inc. raised its position in United Technologies by 1.9% in the third quarter. Vanguard Group Inc. now owns 59,240,301 shares of the conglomerate’s stock worth $8,282,386,000 after purchasing an additional 1,094,947 shares in the last quarter. Vanguard Group Inc increased its holdings in shares of United Technologies by 1.9% during the third quarter. Vanguard Group Inc now owns 59,240,301 shares of the conglomerate’s stock worth $8,282,386,000 after buying an additional 1,094,947 shares in the last quarter. BlackRock Inc. increased its holdings in shares of United Technologies by 13.3% during the fourth quarter. BlackRock Inc. now owns 54,035,145 shares of the conglomerate’s stock worth $5,753,662,000 after buying an additional 6,347,718 shares in the last quarter. Massachusetts Financial Services Co. MA increased its holdings in shares of United Technologies by 0.4% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 15,219,419 shares of the conglomerate’s stock worth $1,620,563,000 after buying an additional 61,785 shares in the last quarter. Finally, Morgan Stanley increased its holdings in shares of United Technologies by 5.5% during the third quarter. Morgan Stanley now owns 12,431,324 shares of the conglomerate’s stock worth $1,738,025,000 after buying an additional 649,983 shares in the last quarter. 80.84% of the stock is owned by hedge funds and other institutional investors.
About United Technologies
United Technologies Corporation provides technology products and services to building systems and aerospace industries worldwide. Its Otis segment designs, manufactures, sells, and installs passenger and freight elevators, escalators, and moving walkways; and offers modernization products to upgrade elevators and escalators, as well as maintenance and repair services.
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