United Technologies (UTX) Cut to “Hold” at Zacks Investment Research

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Zacks Investment Research downgraded shares of United Technologies (NYSE:UTX) from a buy rating to a hold rating in a research report report published on Wednesday, Zacks.com reports.

According to Zacks, “Strength in commercial and military aftermarket businesses and impressive contribution from its acquired Rockwell Collins business sales will likely boost United Technologies' near-term revenues. Also, improved top line and cost-cutting measures are expected to enhance profitability, going forward. Backed by these positives, the company has given bullish full-year 2019 revenue guidance. In addition, it intends to become more competent on the back of meaningful business acquisitions. Over the past year, the stock has outperformed its industry. However, rising costs of sales remain a concern for the company's gross margin. We believe, if unchecked, higher costs and operating expenses will prove detrimental to United Technologies' margins and profitability. Moreover, increases in debt levels can increase its financial obligations.”

UTX has been the topic of several other reports. Barclays cut their target price on shares of United Technologies from $145.00 to $140.00 and set an overweight rating on the stock in a research note on Friday, January 11th. Citigroup reissued a neutral rating and set a $120.00 target price (down from $125.00) on shares of United Technologies in a research note on Thursday, January 3rd. Goldman Sachs Group raised shares of United Technologies from a buy rating to a conviction-buy rating and set a $153.00 target price on the stock in a research note on Friday, February 1st. Bank of America reissued a buy rating and set a $185.00 target price on shares of United Technologies in a research note on Thursday, January 24th. Finally, OTR Global lowered shares of United Technologies to a positive rating in a research note on Friday, January 18th. Six analysts have rated the stock with a hold rating, ten have given a buy rating and one has issued a strong buy rating to the stock. The company presently has a consensus rating of Buy and a consensus target price of $144.00.

Shares of NYSE UTX opened at $137.00 on Wednesday. The firm has a market cap of $118.14 billion, a P/E ratio of 18.00, a P/E/G ratio of 1.93 and a beta of 1.20. United Technologies has a 12-month low of $100.48 and a 12-month high of $144.15. The company has a debt-to-equity ratio of 1.01, a quick ratio of 0.81 and a current ratio of 1.13.

United Technologies (NYSE:UTX) last issued its earnings results on Wednesday, January 23rd. The conglomerate reported $1.95 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.53 by $0.42. The business had revenue of $18.04 billion for the quarter, compared to analyst estimates of $16.87 billion. United Technologies had a net margin of 7.92% and a return on equity of 17.53%. United Technologies’s revenue was up 15.1% on a year-over-year basis. During the same period in the prior year, the firm earned $1.60 earnings per share. Equities research analysts predict that United Technologies will post 7.92 earnings per share for the current fiscal year.

In other United Technologies news, VP Robert J. Bailey sold 862 shares of the firm’s stock in a transaction on Wednesday, February 6th. The shares were sold at an average price of $121.71, for a total value of $104,914.02. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Chairman Gregory Hayes sold 35,942 shares of the firm’s stock in a transaction on Tuesday, February 12th. The shares were sold at an average price of $123.81, for a total transaction of $4,449,979.02. The disclosure for this sale can be found here. Insiders sold 97,770 shares of company stock worth $12,153,044 over the last ninety days. Insiders own 0.15% of the company’s stock.

Several institutional investors have recently added to or reduced their stakes in the business. Point View Wealth Management Inc. raised its holdings in shares of United Technologies by 2.4% in the fourth quarter. Point View Wealth Management Inc. now owns 3,600 shares of the conglomerate’s stock valued at $383,000 after purchasing an additional 85 shares during the last quarter. Newman Dignan & Sheerar Inc. increased its holdings in United Technologies by 1.1% during the fourth quarter. Newman Dignan & Sheerar Inc. now owns 8,234 shares of the conglomerate’s stock worth $877,000 after buying an additional 86 shares during the last quarter. Cim LLC increased its holdings in United Technologies by 4.0% during the fourth quarter. Cim LLC now owns 2,280 shares of the conglomerate’s stock worth $243,000 after buying an additional 87 shares during the last quarter. Addenda Capital Inc. increased its holdings in United Technologies by 0.7% during the first quarter. Addenda Capital Inc. now owns 11,912 shares of the conglomerate’s stock worth $1,535,000 after buying an additional 87 shares during the last quarter. Finally, Pineno Levin & Ford Asset Management Inc. increased its holdings in United Technologies by 2.0% during the fourth quarter. Pineno Levin & Ford Asset Management Inc. now owns 4,794 shares of the conglomerate’s stock worth $510,000 after buying an additional 93 shares during the last quarter. 80.84% of the stock is currently owned by hedge funds and other institutional investors.

About United Technologies

United Technologies Corporation provides technology products and services to building systems and aerospace industries worldwide. Its Otis segment designs, manufactures, sells, and installs passenger and freight elevators, escalators, and moving walkways; and offers modernization products to upgrade elevators and escalators, as well as maintenance and repair services.

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