Yaskawa Electric Shares Drop 7.1% Amid Analyst Upgrades

Yaskawa Electric Corp. experienced a significant decline in its stock price, dropping by 7.1% during mid-day trading on Tuesday. The shares fell to a low of $46.32 before closing at $48.27. This downturn occurred despite only about 550 shares changing hands, a stark decrease of 97% from the average daily volume of 21,951 shares. The stock had previously closed at $51.97.

Analyst Ratings Shift

Several financial analysts have recently provided mixed reviews regarding Yaskawa Electric shares. On October 13, 2023, the Goldman Sachs Group upgraded the stock from a “hold” rating to a “buy” rating. Similarly, on October 10, 2023, UBS Group elevated its rating from “hold” to “strong-buy.” Following these reports, on October 14, 2023, Nomura Securities also upgraded the company from “hold” to “strong-buy.”

In contrast, Zacks Research revised its rating from “strong sell” to “hold” on September 18, 2023. Currently, two analysts have assigned a “strong buy” rating, one has given a “buy” rating, and one has issued a “hold” rating. As a result, Yaskawa Electric holds a consensus rating of “buy,” according to data from MarketBeat.

Recent Financial Performance

Yaskawa Electric recently released its earnings results on October 3, 2023. The company reported earnings per share of $0.59 for the quarter, with a net margin of 10.72% and a return on equity of 13.12%. The company achieved revenues of $914.02 million during this period. Analysts predict that Yaskawa Electric will post earnings per share of 3.02 for the current fiscal year.

Founded in Japan, Yaskawa Electric engages in motion control, robotics, and system engineering, delivering a wide array of products globally. The company manufactures and sells various AC drives for household appliances, social infrastructure projects, and manufacturing machinery.

This recent drop in stock price combined with the mixed analyst ratings reflects the ongoing volatility in the market and raises questions about the future performance of Yaskawa Electric. Investors will be closely monitoring upcoming trends and forecasts as the company navigates these challenges.