Zacks Investment Research Lowers IDEX (NYSE:IEX) to Hold

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IDEX (NYSE:IEX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday, Zacks.com reports. They presently have a $171.00 target price on the industrial products company’s stock. Zacks Investment Research‘s target price would indicate a potential upside of 6.67% from the stock’s previous close.

According to Zacks, “Over the past six months, IDEX's shares have outperformed the industry. The company stands to gain from solid product portfolio, strengthening end-markets and acquired assets in the quarters ahead. Also, its policy of rewarding shareholders handsomely through dividends and buybacks raises its appeal. Earnings are predicted to be $5.70-$5.85 per share in 2019, higher than $5.60-$5.80 mentioned earlier. Organic sales are projected to grow 4-5%. Also, earnings estimates for 2019 and 2020 have improved in the past 60 days. However, the company has been dealing with adverse impacts of higher cost of sales and operating expenses for quite some time now. In addition, unfavorable movements in foreign currencies are predicted to adversely impact sales by 1% in 2019. Further, increases in debt levels can increase its financial obligations.”

A number of other analysts have also recently commented on IEX. Berenberg Bank assumed coverage on IDEX in a research report on Wednesday, May 15th. They issued a “buy” rating and a $180.00 price target for the company. Stifel Nicolaus upped their price target on IDEX from $129.00 to $153.00 and gave the stock a “hold” rating in a research report on Tuesday, April 16th. Janney Montgomery Scott cut IDEX from a “buy” rating to a “neutral” rating in a research report on Friday, March 29th. Oppenheimer restated a “hold” rating on shares of IDEX in a research report on Wednesday, May 8th. Finally, DA Davidson restated a “neutral” rating on shares of IDEX in a research report on Friday, April 26th. Nine equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. The company currently has an average rating of “Hold” and a consensus price target of $153.00.

IEX stock opened at $160.30 on Tuesday. IDEX has a fifty-two week low of $117.72 and a fifty-two week high of $165.72. The company has a debt-to-equity ratio of 0.41, a quick ratio of 2.45 and a current ratio of 3.33. The stock has a market capitalization of $12.27 billion, a price-to-earnings ratio of 29.15, a PEG ratio of 2.79 and a beta of 1.22.

IDEX (NYSE:IEX) last posted its earnings results on Thursday, April 25th. The industrial products company reported $1.44 earnings per share for the quarter, beating analysts’ consensus estimates of $1.37 by $0.07. IDEX had a return on equity of 21.22% and a net margin of 16.92%. The company had revenue of $622.20 million for the quarter, compared to the consensus estimate of $634.38 million. During the same quarter in the prior year, the company earned $1.27 earnings per share. IDEX’s revenue was up 1.6% on a year-over-year basis. On average, equities analysts predict that IDEX will post 5.82 earnings per share for the current year.

In related news, SVP Daniel J. Salliotte sold 7,125 shares of the stock in a transaction dated Tuesday, May 21st. The stock was sold at an average price of $153.06, for a total transaction of $1,090,552.50. Following the completion of the sale, the senior vice president now owns 44,545 shares in the company, valued at $6,818,057.70. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Chairman Andrew K. Silvernail sold 81,120 shares of the stock in a transaction dated Monday, May 6th. The stock was sold at an average price of $155.11, for a total value of $12,582,523.20. Following the sale, the chairman now owns 173,947 shares of the company’s stock, valued at approximately $26,980,919.17. The disclosure for this sale can be found here. Insiders have sold 103,423 shares of company stock valued at $16,055,566 in the last quarter. 1.20% of the stock is currently owned by company insiders.

Large investors have recently added to or reduced their stakes in the stock. Cornerstone Advisors Inc. grew its position in shares of IDEX by 64.9% during the first quarter. Cornerstone Advisors Inc. now owns 183 shares of the industrial products company’s stock worth $28,000 after purchasing an additional 72 shares in the last quarter. Quantamental Technologies LLC purchased a new stake in shares of IDEX during the fourth quarter worth about $25,000. Parallel Advisors LLC grew its holdings in IDEX by 55.7% during the 1st quarter. Parallel Advisors LLC now owns 204 shares of the industrial products company’s stock valued at $31,000 after buying an additional 73 shares in the last quarter. Lindbrook Capital LLC purchased a new position in IDEX during the 4th quarter valued at approximately $32,000. Finally, Essex Investment Management Co. LLC purchased a new position in IDEX during the 4th quarter valued at approximately $33,000. Hedge funds and other institutional investors own 94.66% of the company’s stock.

About IDEX

IDEX Corporation, through its subsidiaries, operates as an applied solutions company worldwide. The company operates through three segments: Fluid & Metering Technologies (FMT), Health & Science Technologies (HST), and Fire & Safety/Diversified Products (FSDP). The FMT segment designs, produces, and distributes positive displacement pumps, flow meters, injectors, and other fluid-handling pump modules and systems, as well as offers flow monitoring and other services for the food, chemical, general industrial, water and wastewater, agricultural, and energy industries.

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