Mitsubishi UFJ Trust Reduces Stake in Applied Industrial Technologies

Mitsubishi UFJ Trust & Banking Corp has reduced its holdings in Applied Industrial Technologies, Inc. by 36.5% in the second quarter of 2023, as disclosed in a recent filing with the Securities and Exchange Commission (SEC). The financial institution sold 20,783 shares, leaving it with 36,228 shares of the industrial products company, which held a market value of approximately $8.4 million at the end of the quarter.

This decision comes amid a broader trend among institutional investors to adjust their stakes in Applied Industrial Technologies. Notably, Alyeska Investment Group L.P. increased its position by 27.9% during the first quarter, now owning 602,798 shares valued at about $135.8 million after acquiring an additional 131,465 shares. Similarly, Boston Trust Walden Corp raised its stake by 2.0%, owning 508,120 shares valued at $118.1 million following a purchase of 10,015 shares.

In a significant shift, AllianceBernstein L.P. increased its holdings by a staggering 452.6%, now owning 436,565 shares worth $98.4 million. Other notable investors include Goldman Sachs Group Inc., which lifted its stake by 4.1%, and Millennium Management LLC, which grew its position by 144.0% in the first quarter. Overall, institutional ownership now accounts for 93.52% of the company’s stock.

Analysts’ Perspectives on Applied Industrial Technologies

Several analysts have expressed varied opinions regarding Applied Industrial Technologies. Robert W. Baird has increased its price target from $265.00 to $300.00 while assigning the stock an “outperform” rating. Conversely, Raymond James Financial downgraded the stock from “outperform” to “market perform” on August 15. Following suit, Industrial Alliance Securities established a price objective of $290.00.

Reports from Wall Street Zen indicated a shift in sentiment, raising shares from a “hold” to a “buy” rating, while Bank of America adjusted its target from $275.00 to $290.00, also rating the stock as “buy.” Collectively, six analysts have rated the stock as “buy,” while one holds a “hold” rating. The consensus rating is a “Moderate Buy” with a target price of $287.50, according to data from MarketBeat.

Recent Stock Performance and Earnings Report

On Monday, Applied Industrial Technologies’ shares opened at $248.67, reflecting a market capitalization of $9.38 billion. The company reported a price-to-earnings ratio of 23.93 and a beta of 0.99. Its fifty-day moving average is $257.36, while the 200-day moving average stands at $250.10. The stock has fluctuated between a twelve-month low of $199.96 and a high of $282.98.

The company recently announced its quarterly earnings results on October 28, 2023, reporting earnings per share (EPS) of $2.63, exceeding analysts’ expectations of $2.47 by $0.16. With a net margin of 8.61% and a return on equity of 21.86%, Applied Industrial Technologies generated revenue of $1.20 billion, surpassing the consensus estimate of $1.19 billion. Revenue increased by 9.2% year-over-year, and the company has set its fiscal year 2026 guidance at $10.100 to $10.850 EPS.

In addition, the firm announced a quarterly dividend of $0.46 per share, payable on November 28 to investors of record on November 14. This marks an annualized dividend of $1.84 and a yield of 0.7%, with a dividend payout ratio of 17.71%.

Insider Transactions and Company Overview

In related news, Neil A. Schrimsher, the CEO, sold 26,671 shares on August 21 at an average price of $262.46, amounting to a total value of approximately $7 million. Following this transaction, he retained 149,735 shares with an estimated value of $39.3 million. Jason W. Vasquez, the Vice President, also sold 7,466 shares on the same day, with a value of around $1.9 million.

Insiders collectively sold 42,660 shares valued at $11.2 million in the last quarter, representing 1.60% of the company’s stock owned by corporate insiders.

Applied Industrial Technologies, Inc. is engaged in distributing industrial motion, power, control, and automation technology solutions across North America, Australia, New Zealand, and Singapore. The company operates in two segments: Service Center Based Distribution and Engineered Solutions. It offers a variety of products, including bearings, power transmission products, hydraulic components, and automation solutions.