Robeco Boosts Rockwell Automation Stake by 16.6% Amid Investor Activity

Robeco Institutional Asset Management B.V. has increased its stake in Rockwell Automation, Inc. (NYSE: ROK) by 16.6% in the third quarter of 2023, as detailed in the firm’s latest filing with the Securities and Exchange Commission (SEC). The institutional investor now holds 465,446 shares of the industrial automation company, having acquired an additional 66,137 shares during this period. This investment is valued at approximately $162,687,000, representing 0.41% of Rockwell Automation’s total shares.

Several other institutional investors have also made significant moves regarding their positions in Rockwell Automation recently. Notably, Norges Bank entered a new position in the second quarter valued at nearly $368,575,000. Holocene Advisors LP expanded its holdings by 128.9% during the same quarter, now owning 866,992 shares valued at about $287,989,000 after purchasing an additional 488,262 shares. Ontario Teachers Pension Plan Board significantly grew its stake by an astonishing 7,730.3%, bringing its total to 354,792 shares worth $117,851,000 after acquiring 350,261 more shares. Similarly, Marshall Wace LLP increased its stake by 294.5%, owning 429,492 shares valued at $142,664,000 after a purchase of 320,627 shares. Currently, institutional investors collectively hold 75.75% of Rockwell Automation’s stock.

Analysts have also weighed in on Rockwell Automation’s stock performance, with several brokerages recently issuing reports. On November 21, 2023, Robert W. Baird raised its price target from $392.00 to $402.00 while rating the stock as “outperform.” Bank of America increased its target from $410.00 to $430.00, maintaining a “buy” rating. TD Cowen adjusted its price target from $275.00 to $330.00, although it assigned a “hold” rating. Wells Fargo & Company also raised its target from $355.00 to $380.00 with an “equal weight” rating. The Goldman Sachs Group shifted its rating from “sell” to “neutral” and increased its price target from $329.00 to $448.00.

Overall, two investment analysts rate Rockwell Automation with a “Strong Buy,” ten give it a “Buy,” and seven assign a “Hold” rating. According to MarketBeat data, the stock currently holds an average rating of “Moderate Buy” with an average price target of $403.31.

In terms of insider activity, SVP Matheus De A. G. Viera Bulho sold 476 shares on December 10, 2023, at an average price of $402.02, resulting in a total transaction value of $191,361.52. Post-transaction, he retained 2,401 shares valued at approximately $965,250.02, reflecting a decrease of 16.55% in his holdings. Similarly, VP Isaac Woods sold 229 shares on the same day for $92,039.68, reducing his ownership by 10.01% to 2,058 shares valued at around $827,151.36. Over the past three months, insiders have sold a total of 88,053 shares valued at approximately $34,718,919. Insiders currently own 0.76% of Rockwell Automation’s stock.

On December 10, 2023, Rockwell Automation shares opened at $404.81. The company’s fifty-day moving average stands at $388.15, while its two-hundred-day moving average is $359.95. Rockwell Automation boasts a market capitalization of $45.45 billion and has shown a price-to-earnings ratio of 52.85 and a PEG ratio of 2.67. The firm has a current ratio of 1.14, quick ratio of 0.77, and a debt-to-equity ratio of 0.70. The stock has fluctuated between a low of $215.00 and a high of $415.89 over the past year.

In its latest earnings report on November 6, 2023, Rockwell Automation announced earnings per share (EPS) of $3.34, exceeding analysts’ expectations of $2.94 by $0.40. The company recorded revenues of $4.63 billion, significantly surpassing expectations of $2.19 billion. The firm reported a net margin of 10.42% and a return on equity of 32.69%. This marks a 13.8% increase in revenue compared to the same quarter last year, where the EPS was $2.47. Rockwell Automation has set its fiscal year 2026 guidance at an EPS range of $11.200 to $12.200. Analysts forecast an average EPS of $9.35 for the current fiscal year.

Additionally, Rockwell Automation recently announced a quarterly dividend of $1.38, paid on December 10, 2023, to shareholders recorded as of November 17, 2023. This dividend reflects an increase from the previous quarterly payment of $1.31 and represents an annualized payout of $5.52 with a yield of 1.4%. The ex-dividend date was November 17, 2023, and the company’s dividend payout ratio currently stands at 72.06%.

Rockwell Automation is headquartered in Milwaukee, Wisconsin, and is a leader in industrial automation and digital transformation. The company designs and manufactures control systems, industrial control hardware, and software that aid manufacturers in automating processes and enhancing productivity. Rockwell’s offerings include programmable logic controllers (PLCs), human-machine interfaces (HMIs), and other essential industrial control hardware, primarily branded under Allen-Bradley.