Dover (DOV) Lifted to “Hold” at Zacks Investment Research

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Zacks Investment Research upgraded shares of Dover (NYSE:DOV) from a sell rating to a hold rating in a research note issued to investors on Friday morning.

According to Zacks, “Backed by improved performances in the Engineered Systems and Fluids segments and expected benefits from its cost containment actions, Dover expects fiscal 2018 earnings per share to be $4.80-$4.85, which represents the top end of the previous guidance. The company is poised to gain from acquisitions, product digitization, e-commerce, new product development, and inorganic investment in core business platforms. Its strong bookings, cost-reduction initiatives and restructuring programs also remain growth drivers. Further, the spin-off of Apergy will help the company by focusing on less volatile core platforms.  The company has a positive record of earnings surprises in the last few quarters. However, inflated input costs due to the imposition of tariffs and impact of weak retail refrigeration markets on Dover’s Refrigeration & Food Equipment segment remain concerns. The stock has underperformed the industry over the past year.”

DOV has been the topic of a number of other research reports. Gordon Haskett started coverage on Dover in a research report on Friday, October 12th. They set a buy rating on the stock. Morgan Stanley cut Dover from an overweight rating to an equal rating and cut their target price for the stock from $94.00 to $89.00 in a research report on Tuesday, December 18th. Barclays lifted their target price on Dover from $96.00 to $97.00 and gave the stock an overweight rating in a research report on Friday, October 19th. SunTrust Banks lifted their target price on Dover to $91.00 and gave the stock a hold rating in a research report on Friday, October 19th. Finally, BMO Capital Markets boosted their price target on Dover from $90.00 to $91.00 and gave the company a market perform rating in a research report on Friday, October 19th. Twelve equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. The stock presently has a consensus rating of Hold and an average price target of $89.18.

DOV opened at $77.86 on Friday. The company has a debt-to-equity ratio of 1.09, a quick ratio of 0.88 and a current ratio of 1.30. Dover has a one year low of $65.83 and a one year high of $90.26. The stock has a market cap of $11.17 billion, a PE ratio of 19.32, a PEG ratio of 1.13 and a beta of 1.39.

Dover (NYSE:DOV) last posted its earnings results on Thursday, October 18th. The industrial products company reported $1.36 EPS for the quarter, topping the Zacks’ consensus estimate of $1.29 by $0.07. Dover had a return on equity of 21.22% and a net margin of 9.69%. The business had revenue of $1.75 billion for the quarter, compared to analysts’ expectations of $1.76 billion. During the same quarter in the previous year, the firm earned $1.14 earnings per share. The business’s revenue was up .0% compared to the same quarter last year. As a group, equities research analysts anticipate that Dover will post 4.84 EPS for the current year.

The business also recently declared a quarterly dividend, which was paid on Monday, December 17th. Investors of record on Friday, November 30th were given a $0.48 dividend. This represents a $1.92 annualized dividend and a yield of 2.47%. The ex-dividend date of this dividend was Thursday, November 29th. Dover’s dividend payout ratio (DPR) is presently 47.64%.

In related news, Director Mary A. Winston sold 2,000 shares of the business’s stock in a transaction dated Tuesday, October 23rd. The stock was sold at an average price of $82.29, for a total value of $164,580.00. Following the transaction, the director now owns 13,055 shares in the company, valued at approximately $1,074,295.95. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 2.60% of the company’s stock.

A number of hedge funds have recently modified their holdings of the stock. FMR LLC boosted its holdings in Dover by 39.9% in the 2nd quarter. FMR LLC now owns 152,997 shares of the industrial products company’s stock valued at $11,200,000 after purchasing an additional 43,645 shares in the last quarter. Baird Financial Group Inc. boosted its holdings in Dover by 10.0% in the 2nd quarter. Baird Financial Group Inc. now owns 6,905 shares of the industrial products company’s stock valued at $505,000 after purchasing an additional 629 shares in the last quarter. OppenheimerFunds Inc. boosted its holdings in Dover by 18.5% in the 2nd quarter. OppenheimerFunds Inc. now owns 8,494 shares of the industrial products company’s stock valued at $622,000 after purchasing an additional 1,327 shares in the last quarter. Glen Harbor Capital Management LLC boosted its holdings in Dover by 35.2% in the 2nd quarter. Glen Harbor Capital Management LLC now owns 4,912 shares of the industrial products company’s stock valued at $360,000 after purchasing an additional 1,280 shares in the last quarter. Finally, AMP Capital Investors Ltd boosted its holdings in Dover by 3.7% in the 2nd quarter. AMP Capital Investors Ltd now owns 103,345 shares of the industrial products company’s stock valued at $7,564,000 after purchasing an additional 3,700 shares in the last quarter. Hedge funds and other institutional investors own 90.70% of the company’s stock.

About Dover

Dover Corporation provides equipment and components, specialty systems, consumable supplies, software and digital solutions, and support services worldwide. The company operates in three segments: Engineered Systems, Fluids, and Refrigeration & Food Equipment. The Engineered Systems segment offers precision marking and coding, digital textile printing, soldering and dispensing equipment, and related consumables and services; and automation components, including manual clamps, power clamps, rotary and linear mechanical indexers, conveyors, pick and place units, glove ports, and manipulators, as well as end-of-arm robotic grippers, slides, and end effectors for fast-moving consumer goods, digital textile printing, vehicle service, environmental solutions, and industrials end markets.

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