Fintel reports that on October 3, 2023, UBS downgraded their outlook for Emerson Electric (NYSE:EMR) from Buy to Neutral.

Analyst Price Forecast Suggests 14.32% Upside

As of August 31, 2023, the average one-year price target for Emerson Electric is 109.42. The forecasts range from a low of 90.90 to a high of $126.00. The average price target represents an increase of 14.32% from its latest reported closing price of 95.71.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Emerson Electric is 16,060MM, a decrease of 22.76%. The projected annual non-GAAP EPS is 4.68.

Emerson Electric Declares $0.52 Dividend

On August 2, 2023 the company declared a regular quarterly dividend of $0.52 per share ($2.08 annualized). Shareholders of record as of August 11, 2023 received the payment on September 11, 2023. Previously, the company paid $0.52 per share.

At the current share price of $95.71 / share, the stock’s dividend yield is 2.17%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.62%, the lowest has been 1.92%, and the highest has been 5.25%. The standard deviation of yields is 0.49 (n=236).

The current dividend yield is 0.92 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.09. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.04%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 2538 funds or institutions reporting positions in Emerson Electric. This is a decrease of 27 owner(s) or 1.05% in the last quarter. Average portfolio weight of all funds dedicated to EMR is 0.32%, an increase of 0.96%. Total shares owned by institutions decreased in the last three months by 6.03% to 446,593K shares. The put/call ratio of EMR is 0.56, indicating a bullish outlook.

What are Other Shareholders Doing?

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 17,833K shares representing 3.12% ownership of the company. In it’s prior filing, the firm reported owning 17,699K shares, representing an increase of 0.75%. The firm decreased its portfolio allocation in EMR by 3.57% over the last quarter.

Bank Of America holds 16,304K shares representing 2.85% ownership of the company. In it’s prior filing, the firm reported owning 13,712K shares, representing an increase of 15.90%. The firm increased its portfolio allocation in EMR by 393.49% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 13,607K shares representing 2.38% ownership of the company. In it’s prior filing, the firm reported owning 13,333K shares, representing an increase of 2.01%. The firm decreased its portfolio allocation in EMR by 4.12% over the last quarter.

Wellington Management Group Llp holds 12,537K shares representing 2.19% ownership of the company. In it’s prior filing, the firm reported owning 9,207K shares, representing an increase of 26.57%. The firm increased its portfolio allocation in EMR by 34.79% over the last quarter.

Wells Fargo holds 10,680K shares representing 1.87% ownership of the company. In it’s prior filing, the firm reported owning 10,767K shares, representing a decrease of 0.82%. The firm increased its portfolio allocation in EMR by 194.13% over the last quarter.

Emerson Electric Background Information
(This description is provided by the company.)

Emerson, headquartered in St. Louis, Missouri (USA), is a global technology and engineering company providing innovative solutions for customers in industrial, commercial, and residential markets. Its Automation Solutions business helps process, hybrid, and discrete manufacturers maximize production, protect personnel and the environment while optimizing their energy and operating costs. Its Commercial & Residential Solutions business helps ensure human comfort and health, protect food quality and safety, advance energy efficiency, and create sustainable infrastructure.

This article originally appeared on Fintel

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