ITT Upgraded to Buy as Analysts Boost Target Prices

Shares of ITT Inc. (NYSE: ITT) received an upgrade from Wall Street Zen, moving from a “hold” rating to a “buy” rating, according to a report released on October 30, 2023. This positive shift reflects growing confidence in the company’s performance amid a series of favorable assessments from several analysts.

In addition to Wall Street Zen’s upgrade, KeyCorp raised its target price for ITT shares from $200.00 to $215.00, while designating the company with an “overweight” rating. This adjustment was reported on the same day as Wall Street Zen’s announcement. On October 8, 2023, Weiss Ratings reaffirmed a “buy (b)” rating for ITT, indicating a strong belief in the company’s growth potential.

DA Davidson also expressed optimism, restating a “buy” rating with a price target of $215.00 in a report dated December 8, 2023. Stifel Nicolaus took a more bullish stance, setting a target price of $225.00 for ITT. Furthermore, TD Cowen increased its price target from $170.00 to $190.00, maintaining its “buy” rating on October 2, 2023. According to data from MarketBeat, ITT now holds an average rating of “buy” from ten investment analysts, with a consensus target price of $207.13.

Strong Earnings Report and Future Guidance

On October 29, 2023, ITT announced its earnings for the third quarter, reporting earnings per share (EPS) of $1.78. This figure exceeded analysts’ expectations of $1.67 by $0.11. The company achieved a net margin of 12.67% and a return on equity of 18.96%. Revenue for the quarter reached $999.10 million, surpassing the forecast of $973.69 million. Compared to the same quarter last year, ITT’s revenue grew by 12.9%, and the company reported an EPS of $1.46 during that period.

For the fiscal year 2025, ITT has set an EPS guidance range of $6.620 to $6.680. Analysts forecast that ITT will post an EPS of $6.51 for the current fiscal year.

Dividend Announcement and Insider Trading Activity

In a recent development, ITT declared a quarterly dividend of $0.351 per share, payable on December 31, 2023, to shareholders who were on record as of December 1, 2023. The dividend represents an annualized payout of $1.40, offering a yield of 0.8%. The company’s dividend payout ratio stands at 23.26%.

In terms of insider trading, CAO Mesa Graziano Cheryl De sold 238 shares of ITT on November 3, 2023, at an average price of $183.08, totaling $43,573.04. Following this transaction, she retained 5,062 shares in the company, now valued at approximately $926,750.96, reflecting a 4.49% decrease in her ownership.

Additionally, CFO Emmanuel Caprais sold 5,500 shares on October 31, 2023, at an average price of $185.23, amounting to $1,018,765.00. After this sale, Caprais owns 36,830 shares, valued at around $6,822,020.90, marking a 12.99% decrease in his ownership. Company insiders collectively own 0.47% of ITT’s stock.

Institutional Investments Surge

Recent changes in institutional trading indicate a robust interest in ITT. Amundi increased its stake in the company by an astounding 22,565.6% during the first quarter, now holding 7,253 shares valued at $867,000 after acquiring an additional 7,221 shares. Goldman Sachs Group Inc. raised its holdings by 7.4%, owning 418,238 shares worth approximately $54,020,000 after purchasing an additional 28,937 shares.

Other notable institutional movements include Empowered Funds LLC, which bought a new position worth about $360,000, and UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC, which grew its stake by 2.5%, now owning 256,670 shares valued at $33,151,000. Focus Partners Wealth also increased its position by 80.7%, acquiring an additional 3,515 shares.

Currently, institutional investors own 91.59% of ITT’s stock, showcasing strong confidence in the company’s future prospects.

About ITT Inc.

ITT Inc. is a diversified industrial manufacturing firm specializing in mission-critical components and systems for various global markets. The company’s engineered solutions support applications across aerospace, defense, transportation, energy, and industrial automation. ITT focuses on high-performance products that ensure reliable fluid handling, precision motion control, and robust connectivity in demanding environments.

The company operates through three segments: Motion Technologies, which provides precision components and aftermarket repair services; Connect & Control Technologies, offering specialty valves and seals; and Fluid & Motion Control, delivering fluid management solutions for several industries.

As ITT continues to receive positive evaluations from analysts and demonstrates solid financial performance, its standing in the market appears increasingly favorable.