Zacks Research Downgrades Rockwell Automation (NYSE:ROK) to Hold

Rockwell Automation (NYSE:ROK) was downgraded by Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued on Thursday,Zacks.com reports. Zacks Research also issued estimates for Rockwell Automation’s Q2 2027 earnings at $3.38 EPS, Q3 2027 earnings at $3.64 EPS, Q4 2027 earnings at $3.88 EPS, FY2027 earnings at $13.90 EPS, Q1 2028 earnings at $3.63 EPS, Q2 2028 earnings at $3.86 EPS, Q3 2028 earnings at $4.03 EPS and FY2028 earnings at $16.21 EPS.

A number of other research analysts have also weighed in on the company. Wells Fargo & Company raised their price objective on Rockwell Automation from $360.00 to $440.00 and gave the company an “equal weight” rating in a research report on Wednesday, May 6th. Argus boosted their target price on Rockwell Automation from $465.00 to $530.00 and gave the stock a “buy” rating in a research report on Wednesday, June 24th. KeyCorp increased their price target on Rockwell Automation from $470.00 to $510.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Sanford C. Bernstein began coverage on Rockwell Automation in a report on Tuesday, June 9th. They set a “market perform” rating and a $501.00 price target for the company. Finally, The Goldman Sachs Group lifted their price objective on Rockwell Automation from $448.00 to $487.00 in a research note on Wednesday, May 6th. Nine equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $469.33.

Rockwell Automation Price Performance

ROK stock opened at $481.31 on Thursday. The company has a debt-to-equity ratio of 0.72, a quick ratio of 0.76 and a current ratio of 1.09. The company’s fifty day moving average price is $465.17 and its 200-day moving average price is $424.20. Rockwell Automation has a one year low of $305.44 and a one year high of $497.36. The company has a market capitalization of $53.56 billion, a PE ratio of 50.03, a price-to-earnings-growth ratio of 2.78 and a beta of 1.54.

Rockwell Automation (NYSE:ROK) last posted its earnings results on Tuesday, May 5th. The industrial products company reported $3.30 earnings per share for the quarter, beating the consensus estimate of $2.88 by $0.42. The company had revenue of $2.24 billion during the quarter, compared to analysts’ expectations of $2.16 billion. Rockwell Automation had a net margin of 12.36% and a return on equity of 37.54%. Rockwell Automation’s quarterly revenue was up 11.9% on a year-over-year basis. During the same period last year, the company posted $2.45 earnings per share. Rockwell Automation has set its FY 2026 guidance at 12.500-13.100 EPS. On average, equities analysts anticipate that Rockwell Automation will post 13.06 EPS for the current fiscal year.

Rockwell Automation announced that its Board of Directors has initiated a stock repurchase plan on Tuesday, June 9th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the industrial products company to repurchase up to 2% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s management believes its shares are undervalued.

Insider Transactions at Rockwell Automation

In other news, SVP Christopher Nardecchia sold 2,538 shares of Rockwell Automation stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $446.43, for a total value of $1,133,039.34. Following the completion of the transaction, the senior vice president owned 14,232 shares in the company, valued at approximately $6,353,591.76. The trade was a 15.13% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Scott Genereux sold 550 shares of the business’s stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $447.73, for a total value of $246,251.50. Following the transaction, the vice president directly owned 2,764 shares in the company, valued at approximately $1,237,525.72. This represents a 16.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 9,361 shares of company stock worth $4,189,886 in the last quarter. Company insiders own 0.76% of the company’s stock.

Hedge Funds Weigh In On Rockwell Automation

Several hedge funds have recently bought and sold shares of the business. Brighton Jones LLC bought a new stake in Rockwell Automation during the 4th quarter valued at $281,000. AQR Capital Management LLC grew its position in shares of Rockwell Automation by 75.9% during the 1st quarter. AQR Capital Management LLC now owns 8,139 shares of the industrial products company’s stock worth $2,059,000 after buying an additional 3,513 shares in the last quarter. Empowered Funds LLC grew its position in shares of Rockwell Automation by 142.7% during the 1st quarter. Empowered Funds LLC now owns 7,305 shares of the industrial products company’s stock worth $1,887,000 after buying an additional 4,295 shares in the last quarter. Acadian Asset Management LLC increased its stake in shares of Rockwell Automation by 233.6% during the first quarter. Acadian Asset Management LLC now owns 1,878 shares of the industrial products company’s stock valued at $484,000 after buying an additional 1,315 shares during the period. Finally, Jump Financial LLC purchased a new position in shares of Rockwell Automation during the second quarter valued at $868,000. Institutional investors own 75.75% of the company’s stock.

About Rockwell Automation

Rockwell Automation is a global industrial automation and digital transformation company headquartered in Milwaukee, Wisconsin. The firm designs, manufactures and supports control systems, industrial control hardware and software, and related services that help manufacturers and industrial operators automate processes, improve productivity and enable data-driven decision making. Rockwell traces its heritage to the Allen-Bradley and Rockwell automation businesses and positions itself as a provider of integrated automation solutions across discrete and process industries.

The company’s product portfolio includes programmable logic controllers (PLCs), human-machine interfaces (HMIs), variable frequency drives, sensors, safety components and other industrial control hardware, often marketed under the Allen-Bradley brand.