Jefferies Downgrades Actuant To Hold

Analysts at Jefferies downgraded Actuant Corp ATU today by lowering their rating of the stock from Buy to Hold and setting a price target of $30.00. Actuant is a diversified manufacturing and distributing company that produces a wide range of industrial equipment, including hydraulic and mechanical tools. Jefferies analysts expressed their concern that Actuant’s earnings will continue to lag for the third straight year.
Modest upside
Actuant stock is down nearly four percent today on news of the downgrade and is currently trading at around $26.90. Jefferies’ $30 price target represents an 11.5 percent upside for the stock from current levels. Actuant stock has had a horrible 2014. The stock is down more than 26 percent year to date.
Insider selling
In September of 2014, Actuant director Robert Arzbaecher sold more than $2.1 million worth of Actuant stock at a price of around $31.00. While insider selling is not a reliable predictor of the near-term future of a company, it certainly isn’t reassuring for Actuant shareholders to see management selling millions of dollars of stock.
Other analyst action
Jefferies was not the only firm that weighed in on Actuant today, as two other firms also gave their take on the stock. Stifel reiterated their Buy rating on Actuant, but lowered their price target for the stock from $39.00 to $34.00. FBR Capital also reiterated their Market Perform rating on Actuant today and lowered their price target from $32.00 to $27.00. In late November, RBC Capital Markets initiated coverage of Actuant by issuing a Sector Perform rating and setting a $33.00 price target for the stock.