ITT Inc. (ITT) Giving Traders A Second Chance To Buy

It has been reported that multiple insider activity took place at ITT Inc. (ITT). The insider Creamer Victoria L sold 7,640 shares for $15,408 in transaction occurred on 2018/05/21. After making this transaction, The insider owns a direct stake of 13 shares, worth $963,466, as per the last closing price. On 2018/05/11 Ramos Denise L, The insider at ITT, dumped 105,295 shares at an average price of $52.74 per share. The selling total is valued at $19,346,782.

VP & Chief Accounting Officer, GIULIANO STEVEN C had divested 11,940 shares for $28,023 through a trade on 2018/05/11. Following this activity, the insider holds 18 shares worth $1,752,299 as of recent close.

iShares Core S&P Midcap ETF revealed as top hedge fund owner in ITT Inc. (ITT) with a stake of over 2.5M ITT shares as of February 27, with a market value of approx. $144.23M as of today. The second largest holder, Janus Henderson Triton Fund, with 2.39M shares which equates to $115.47M worth of the stock. At third is Vanguard Small-Cap Index Fund, which stood pat with 2.24M shares, a 2.5% position in ITT Inc., worth $137.14M. The insider holding in stood at 0.3% while institutions hold 92.8%.

ITT Inc. (NYSE:ITT) rose 2.14% in recent trade and currently has a stock-market value of $5.48B. The shares finished at $62.53, after trading as low as $61.54 earlier in the session. It hit an intraday high Friday at $62.66. Trading activity significantly improved as the volume at ready counter increased to 663,272 shares versus 536,045 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 528,244 shares. The stock is now 39.3% above against its bear-market low of $44.89 on December 26, 2018. It has retreated -0.82% since it’s 52-week high of $63.04 reached in August. Now the market price is up 21.44% on the year and up 29.54% YTD.

ITT stock’s 50 day simple moving average (SMA 50) price is $57.37 and its 200-day simple moving average (SMA 200) price is $55.29. The company’s stock currently has a total float of 86.92M shares. Its weekly volatility is hovering around 1.81% and felt 1.8% volatility in price over a month. On the upside, the share price will test short term resistance at around $62.95. On a downside, the stock is likely to find some support, which begins at $61.83. The failure to get near-term support could push it to $61.12.

It had seen a positive analyst call from UBS, which upgraded the stock from Sell to Neutral on February 28. Analysts at Gordon Haskett, started covering the stock on October 12 with a Buy rating. Brokerage firm Stifel, looks cautious as they stick to prior recommendation of Buy, in a call on August 06. However, they did change the target price from $59 to $68. Stifel, reiterated their call for Buy, on February 20. On the other hand, they had set new target price to $62 versus $63.

When looking at valuations, ITT Inc. (ITT) has a cheap P/E of 17.69x as compared to industry average of 21.15x. Moreover, it trades for 15.79 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 3.01x price/book and 2x price/sales. Compared to others, ITT Inc. is in a different league with regards to profitability, having net margins of 12.2%. To put some perspective around this, the industry’s average net margin is 14.07%. ITT’s ROE is 19.2%, which is also considerably better than the industry’s ROE of 11.63%. It’s also very liquid in the near term, with a current ratio of 1.9. The stock has a debt/capital of 0.07.

Shares of ITT have gained 10.9% since the company’s most recent earnings report. Over the past 12 fiscal quarters, ITT Inc. (NYSE:ITT) has topped consensus earnings estimates in 10 quarters (83%), missed earnings in 0 quarters (0%), whereas at 2 occasion EPS met analyst expectations. ITT last reported earnings that exceeded expectations. The company raked in $0.82 per share, -92.26% change on the same period last year. That was better than consensus for $0.74. Revenue for the recent quarter stood at $678.4 million, down -1% on last year and below the $700.55 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $695.5 million to $730 million, which should be compared with $706 million generated last year. EPS is seen in a range of $0.87 to $0.94, against the $0.85 reported a year ago.