ITT Inc. (ITT) Price Analysis: ITT Needs To Hold Tight Above These Levels

It has been reported that multiple insider activity took place at ITT Inc. (ITT). The insider Savi Luca sold 36,063 shares for $48,615 in transaction occurred on 2019/05/06. After making this transaction, The insider owns a direct stake of shares, worth $2,971,349, as per the last closing price. On 2019/05/06 Scalera Thomas M, EVP & CFO at ITT, dumped 64,135 shares at an average price of $61.57 per share. The selling total is valued at $3,226,213.

The insider, Batliwala Farrokh had divested 8,950 shares for $23,323 through a trade on 2019/05/06. Following this activity, the insider holds shares worth $1,425,520 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 2.52M ITT shares as of March 30, with a market value of approx. $145.94M as of today. The second largest holder, Janus Henderson Triton Fund, with 2.39M shares which equates to $138.74M worth of the stock. At third is Vanguard Small-Cap Index Fund, which stood pat with 2.24M shares, a 2.56% position in ITT Inc., worth $137.14M. The insider holding in stood at 0.3% while institutions hold 91.8%.

ITT Inc. (NYSE:ITT) rose 1.31% in recent trade and currently has a stock-market value of $5.35B. The shares finished at $61.12, after trading as low as $60.64 earlier in the session. It hit an intraday high Thursday at $61.46. Trading activity significantly weakened as the volume at ready counter decreased to 505,169 shares versus 652,200 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 553,864 shares. The stock is now 36.16% above against its bear-market low of $44.89 on December 26, 2018. It has retreated -3.96% since it’s 52-week high of $63.54 reached in May. Now the market price is up 15.5% on the year and up 26.62% YTD.

ITT stock’s 50 day simple moving average (SMA 50) price is $59.85 and its 200-day simple moving average (SMA 200) price is $56.22. The company’s stock currently has a total float of 87.36M shares. Its weekly volatility is hovering around 2.05% and felt 1.84% volatility in price over a month. On the upside, the share price will test short term resistance at around $61.51. On a downside, the stock is likely to find some support, which begins at $60.69. The failure to get near-term support could push it to $60.25.

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 18.1x as compared to industry average of 24.83x. Moreover, it trades for 15.32 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.87x price/book and 1.95x price/sales. Compared to others, ITT Inc. is in a different league with regards to profitability, having net margins of 11%. To put some perspective around this, the industry’s average net margin is 13.64%. ITT’s ROE is 17%, which is also considerably better than the industry’s ROE of 10.91%. It’s also very liquid in the near term, with a current ratio of 2. The stock has a debt/capital of 0.07.

Shares of ITT have gained 1.3% since the company’s most recent earnings report. Over the past 12 fiscal quarters, ITT Inc. (NYSE:ITT) has topped consensus earnings estimates in 11 quarters (91%), missed earnings in 0 quarters (0%), whereas at 1 occasion EPS met analyst expectations. ITT last reported earnings that exceeded expectations. The company raked in $0.91 per share, -88.54% change on the same period last year. That was better than consensus for $0.84. Revenue for the recent quarter stood at $695.5 million, up 1% on last year and above the $682.29 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $694.92 million to $717 million, which should be compared with $716.45 million generated last year. EPS is seen in a range of $0.89 to $0.94, against the $0.88 reported a year ago.