Zacks Research Issues Optimistic Forecast for AIT Earnings

Key Takeaways:

• Zacks Research increases AIT’s Q2 2025 EPS estimate from $2.19 to $2.20.
• Multiple analysts upgrade AIT to “buy” with higher price targets.
• AIT holds a “Moderate Buy” consensus rating with an average price target of $285.71.
• Insiders sell shares amidst high stock prices.
• Institutional investors increase their positions in AIT.

Analysts Increase Earnings Estimates

Applied Industrial Technologies, Inc. (NYSE: AIT) has garnered optimistic attention from financial analysts, with Zacks Research increasing its second-quarter 2025 earnings per share (EPS) estimates. In a report issued on Monday, January 13th, Zacks Research analyst S. Roy revised the company’s Q2 2025 EPS forecast from $2.19 to $2.20. This boost reflects growing confidence in the industrial products company’s performance. The consensus estimate for AIT’s current full-year earnings stands at $9.76 per share.

Upgraded Ratings and Price Targets

The positive sentiment doesn’t stop with Zacks Research. Several analysts have upgraded their ratings and price targets for AIT:

• Loop Capital raised its price objective from $230.00 to $270.00, maintaining a “buy” rating in a research report dated October 28th.

• Bank of America upgraded AIT from a “neutral” to a “buy” rating, increasing the price target from $285.00 to $315.00 on November 26th.

• StockNews.com moved the stock from a “hold” to a “buy” rating on Wednesday.

• Robert W. Baird increased their target price from $210.00 to $250.00, giving an “outperform” rating in an October 16th report.

• Mizuho initiated coverage on October 22nd, assigning an “outperform” rating with a $285.00 price target.

According to MarketBeat, AIT currently holds an average rating of “Moderate Buy,” with one analyst rating the stock as “hold” and eight awarding a “buy” rating. The consensus price target is $285.71, indicating analysts’ positive expectations for the company’s stock performance.

Stock Market Performance

AIT’s stock opened at $255.43 on Wednesday, reflecting market enthusiasm. The company boasts a market capitalization of $9.82 billion, a price-to-earnings (P/E) ratio of 26.06, and a beta of 1.08. The stock has experienced a twelve-month low of $166.37 and a high of $282.98. The business’s 50-day moving average price is $259.65, with a 200-day moving average of $228.41.

Institutional and Insider Activities

Institutional investors have been actively adjusting their positions in AIT:

• Mountain Pacific Investment Advisers LLC increased its holdings by 36.6% during the fourth quarter, now owning 46,155 shares valued at $11,053,000.

• Thurston Springer Miller Herd & Titak Inc. boosted its holdings by 58.8%, owning 4,897 shares worth $1,173,000.

• Park Avenue Securities LLC and Harbor Capital Advisors Inc. also raised their stakes in the company, reflecting institutional confidence in AIT’s future prospects.

Insider trading activities have made headlines as well:

• Director Mary Dean Hall sold 2,200 shares on November 27th at an average price of $275.08, totaling $605,176.00. Following the sale, Hall now owns 3,462 shares valued at approximately $952,326.96.

• Vice President Warren E. Hoffner III sold 4,000 shares on the same day at an average price of $281.64, amounting to $1,126,560.00. Hoffner now directly owns 55,709 shares in the company, valued at approximately $15,689,882.76.

Corporate insiders collectively own 1.67% of AIT’s stock, signaling a vested interest in the company’s performance.

Dividend Announcement

AIT recently declared a quarterly dividend of $0.37 per share, which was paid on November 29th to shareholders of record as of November 15th. This dividend represents an annualized payout of $1.48 per share and a yield of 0.58%. The company’s dividend payout ratio (DPR) is currently 15.10%, showcasing its commitment to returning value to shareholders.

Company Overview

Applied Industrial Technologies, Inc. is a distributor of industrial motion, power, control, and automation technology solutions. Operating in North America, Australia, New Zealand, and Singapore, the company functions through two segments: Service Center Based Distribution and Engineered Solutions. AIT provides a wide range of products, including bearings, power transmission products, fluid power components, flow control solutions, and advanced automation products. These offerings support the operational needs of customers’ machinery and equipment across various industries.

Applied Industrial Technologies’ recent analyst upgrades, increased earnings estimates, and active institutional investment highlight a promising trajectory for the company. With insiders holding significant stakes and the company delivering consistent dividends, AIT stands as a compelling prospect for investors watching the industrial products sector.