Meritor, Inc. (NYSE:MTOR) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research note issued on Friday. The firm presently has a $17.00 price target on the stock. Zacks Investment Research’s target price indicates a potential upside of 13.41% from the stock’s current price.
According to Zacks, “Meritor has outperformed the Zacks-categorized Auto/Truck-Original Equipment industry over a year. The share price benefited from better-than-expected results in fiscal 2016, benefits from new business and focus on M2019 plan. The company will further reduce its debt level per this plan. The company is also looking to introduce 20 new products over the next 3 years, as per the plan. The primary objectives of the plan are to grow revenues by 20% and increase earnings per share by $1.25. Meritor is also aiming for new business wins to achieve the revenue growth target in this time frame.”
Several other equities research analysts have also commented on MTOR. Barclays PLC set a $10.00 price objective on shares of Meritor and gave the stock a “hold” rating in a research report on Tuesday, November 8th. Stifel Nicolaus upgraded shares of Meritor from a “hold” rating to a “buy” rating and boosted their price objective for the stock from $14.00 to $17.00 in a research report on Thursday. One investment analyst has rated the stock with a sell rating, three have given a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the stock. The company presently has an average rating of “Buy” and a consensus price target of $11.86.
Shares of Meritor (NYSE:MTOR) traded down 2.40% during midday trading on Friday, hitting $14.63. 217,004 shares of the company’s stock were exchanged. The stock’s 50-day moving average price is $13.26 and its 200 day moving average price is $11.22. Meritor has a one year low of $5.69 and a one year high of $15.45. The firm has a market cap of $1.27 billion, a PE ratio of 2.35 and a beta of 2.34.
Meritor (NYSE:MTOR) last released its quarterly earnings data on Wednesday, November 16th. The company reported $0.34 EPS for the quarter, topping the consensus estimate of $0.28 by $0.06. Meritor had a net margin of 17.22% and a negative return on equity of 29.67%. The business had revenue of $728 million for the quarter, compared to analyst estimates of $747.98 million. During the same period in the previous year, the firm earned $0.39 EPS. The business’s revenue for the quarter was down 14.7% compared to the same quarter last year. Equities research analysts forecast that Meritor will post $1.30 EPS for the current year.
In other Meritor news, CFO Kevin Nowlan sold 5,250 shares of the company’s stock in a transaction dated Tuesday, January 3rd. The shares were sold at an average price of $12.70, for a total value of $66,675.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Victoria J. Bridges sold 3,868 shares of the company’s stock in a transaction dated Monday, December 12th. The shares were sold at an average price of $12.95, for a total transaction of $50,090.60. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 395,516 shares of company stock worth $4,923,925. 2.87% of the stock is owned by insiders.
Several hedge funds and other institutional investors have recently bought and sold shares of the stock. AHL Partners LLP bought a new position in Meritor during the second quarter worth approximately $107,000. BNP Paribas Arbitrage SA increased its position in Meritor by 55.9% in the third quarter. BNP Paribas Arbitrage SA now owns 9,835 shares of the company’s stock worth $109,000 after buying an additional 3,526 shares in the last quarter. Bank of Montreal Can increased its position in Meritor by 71.6% in the third quarter. Bank of Montreal Can now owns 11,137 shares of the company’s stock worth $124,000 after buying an additional 4,646 shares in the last quarter. Principal Financial Group Inc. increased its position in Meritor by 1.8% in the third quarter. Principal Financial Group Inc. now owns 11,796 shares of the company’s stock worth $131,000 after buying an additional 206 shares in the last quarter. Finally, SG Americas Securities LLC bought a new position in Meritor during the third quarter worth approximately $156,000. 90.19% of the stock is owned by institutional investors.
Meritor Company Profile
Meritor, Inc is engaged in the development, manufacture, sale, assembly, distribution, import and export of movement control systems for buses, trailers and trucks and their parts and components. It serves commercial truck, trailer, bus and coach and off-highway machinery manufacturers. The Company’s segments include commercial truck and industrial, and aftermarket and trailer.
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