Meritor (NYSE:MTOR) Lifted to Strong-Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of Meritor (NYSE:MTOR) from a hold rating to a strong-buy rating in a report published on Thursday, Zacks.com reports. They currently have $26.00 price objective on the auto parts company’s stock.

According to Zacks, “Meritor’s strong orders, higher backlogs of trucks and improved trailer business boosted results in the last reported quarter. Further, the company raised its guidance for fiscal 2019 on robust backlogs and improving market share. For the current fiscal, the company projects revenues of nearly $4.4 billion and adjusted earnings from continuing operations of approximately $3.70 per share. It regularly introduces products that position it as a market leader. Apart from launches, it announced 22 electrification programs with global OEMs to introduce roughly 130 fully-electric medium and heavy-duty commercial trucks on the road through 2020. The acquisition of Axle-Tech supports Meritor’s growth strategy. However, high concentration of customers, rise in material and freight costs as well as currency fluctuations are headwinds.”

MTOR has been the topic of several other reports. Stifel Nicolaus set a $29.00 price objective on Meritor and gave the stock a buy rating in a research note on Thursday, May 2nd. Longbow Research cut Meritor from a buy rating to a neutral rating and set a $23.42 price objective on the stock. in a research note on Monday, May 6th. Six equities research analysts have rated the stock with a hold rating, two have given a buy rating and one has given a strong buy rating to the company’s stock. The stock presently has a consensus rating of Hold and an average target price of $25.63.

Shares of Meritor stock traded down $1.00 during trading hours on Thursday, hitting $21.45. The company’s stock had a trading volume of 1,345,143 shares, compared to its average volume of 690,097. The stock has a 50 day moving average price of $23.43. Meritor has a 12-month low of $15.01 and a 12-month high of $25.78. The firm has a market cap of $1.85 billion, a P/E ratio of 7.08 and a beta of 2.22. The company has a current ratio of 1.25, a quick ratio of 0.68 and a debt-to-equity ratio of 1.44.

Meritor (NYSE:MTOR) last posted its earnings results on Wednesday, July 31st. The auto parts company reported $1.20 EPS for the quarter, topping analysts’ consensus estimates of $0.95 by $0.25. Meritor had a return on equity of 83.77% and a net margin of 6.31%. The company had revenue of $1.17 billion for the quarter, compared to the consensus estimate of $1.18 billion. During the same period in the previous year, the business earned $0.89 earnings per share. The firm’s revenue for the quarter was up 3.3% on a year-over-year basis. As a group, analysts predict that Meritor will post 3.7 EPS for the current year.

In other Meritor news, Director Rodger L. Boehm bought 2,000 shares of the business’s stock in a transaction dated Tuesday, May 14th. The shares were purchased at an average price of $21.00 per share, with a total value of $42,000.00. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 2.80% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in MTOR. Quantamental Technologies LLC grew its stake in Meritor by 84.1% in the first quarter. Quantamental Technologies LLC now owns 2,629 shares of the auto parts company’s stock worth $54,000 after purchasing an additional 1,201 shares in the last quarter. Investors Research Corp purchased a new stake in shares of Meritor during the 1st quarter valued at $60,000. Advisors Preferred LLC purchased a new stake in shares of Meritor during the 1st quarter valued at $76,000. Robeco Institutional Asset Management B.V. purchased a new stake in shares of Meritor during the 2nd quarter valued at $77,000. Finally, New York State Teachers Retirement System purchased a new stake in shares of Meritor during the 1st quarter valued at $98,000. 95.15% of the stock is currently owned by hedge funds and other institutional investors.

Meritor Company Profile

Meritor, Inc designs, develops, manufactures, markets, distributes, sells, services, and supports integrated systems, modules, and components to original equipment manufacturers (OEMs) and the aftermarket for the commercial vehicle, transportation, and industrial sectors. It operates through two segments, Commercial Truck; and Aftermarket, Industrial and Trailer.

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