Zacks Research has upgraded ESCO Technologies (NYSE:ESE) to a “hold” rating, according to a report released on November 25, 2023. This change comes amid a series of evaluations from other financial analysts regarding the company’s stock performance. Notably, Wall Street Zen recently raised its rating from “hold” to “buy,” while CJS Securities designated the stock as a “strong-buy” on December 11, 2023. Overall, two analysts have issued a “strong buy” rating, two a “buy,” and one a “hold,” resulting in a consensus rating of “buy” with a target price of $187.50.
Quarterly Earnings Overview
ESCO Technologies reported its quarterly earnings on November 20, 2023, revealing earnings of $2.32 per share, surpassing analyst expectations of $2.13 by $0.19. The company achieved a return on equity of 12.21% and a net margin of 25.76%. Despite this positive news, the company’s quarterly revenue reached $286.50 million, below the consensus estimate of $306.39 million. Comparing year-on-year figures, revenue increased by 28.9%, with earnings per share rising from $1.46 in the same quarter last year.
Looking ahead, ESCO Technologies has set guidance for Q1 2026 at earnings per share between $1.250 and $1.350, with an annual forecast of $7.500 to $7.800. Analysts anticipate earnings per share of $5.65 for the current year.
Insider Activity and Institutional Investment
In other developments, CEO Bryan H. Sayler sold 9,382 shares of ESCO Technologies at an average price of $220.00 on November 25, 2023. The transaction totaled approximately $2,064,040.00, resulting in a 31.23% reduction of his shareholdings, which are now valued at around $4,544,100. Additionally, CFO Christopher L. Tucker sold 5,000 shares at an average price of $220.15, amounting to $1,100,750.00, representing a 19.90% decrease in his ownership.
Insider sales over the past three months totaled 21,699 shares, valued at $4,778,734, with corporate insiders owning 0.70% of the company’s stock. Institutional investors continue to play a significant role in ESCO Technologies, with 95.70% of the stock held by institutional investors and hedge funds.
Recent institutional activity includes Intech Investment Management LLC, which increased its stake in ESCO Technologies by 8.1% in the first quarter, now holding 20,352 shares. Envestnet Asset Management Inc. raised its holdings by 11.3% in the second quarter, owning 94,081 shares. Other notable increases include Wealth Enhancement Advisory Services LLC and Russell Investments Group Ltd., which expanded their positions in the company significantly during the same period.
About ESCO Technologies
ESCO Technologies Inc. produces and supplies engineered products and systems across global industrial and commercial markets. The company operates through three segments: Aerospace & Defense, Utility Solutions Group, and RF Test & Measurement. The Aerospace & Defense segment specializes in designing and manufacturing filtration products for various applications, including commercial aerospace and military use.
With a focus on innovation and efficiency, ESCO Technologies continues to solidify its position in the scientific and technical instruments sector, responding proactively to market demands and maintaining robust financial health.
