The Manitowoc (MTW) Lowered to Strong Sell at Zacks Investment Research

The Manitowoc (NYSE:MTW) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Monday.

According to Zacks, “Manitowoc's earnings will be impacted by the imposition of 25% tariff on steel. The company might not be able to raise its prices to counter increased steel prices given the weak demand. Cost pressures pertaining to raw materials and labor are expected to remain headwinds in the near term. Further, the crawler and rough terrain markets continue to be sluggish. The company’s cost reduction and facility consolidation efforts continue to yield savings but are not yet being fully leveraged given current low volumes. Manitowoc is also facing stiff competition from China-based crane manufacturers. In addition, the Middle East remains challenging because of geopolitical uncertainties. Moreover, the company has underperformed the industry over the past year.”

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A number of other equities analysts have also recently weighed in on the stock. Robert W. Baird cut shares of The Manitowoc from an “outperform” rating to a “neutral” rating and lifted their price target for the stock from $27.95 to $33.00 in a research report on Friday, March 2nd. JPMorgan Chase cut shares of The Manitowoc from a “neutral” rating to an “underweight” rating and reduced their price target for the stock from $30.00 to $29.00 in a research report on Monday, February 12th. Stifel Nicolaus reduced their price target on shares of The Manitowoc from $48.00 to $42.00 and set a “buy” rating on the stock in a research report on Monday, February 12th. Credit Suisse Group raised their price objective on shares of The Manitowoc from $36.00 to $37.00 and gave the stock a “neutral” rating in a report on Monday, February 12th. Finally, Deutsche Bank dropped their price objective on shares of The Manitowoc from $44.00 to $36.00 and set a “hold” rating on the stock in a report on Monday, February 12th. Three equities research analysts have rated the stock with a sell rating, six have given a hold rating and six have assigned a buy rating to the company. The Manitowoc presently has a consensus rating of “Hold” and a consensus price target of $38.38.

Shares of NYSE MTW traded up $0.76 during midday trading on Monday, reaching $28.88. 51,429 shares of the stock were exchanged, compared to its average volume of 717,623. The stock has a market cap of $993.96, a price-to-earnings ratio of -111.08 and a beta of 1.54. The Manitowoc has a 12 month low of $21.20 and a 12 month high of $44.03. The company has a quick ratio of 0.89, a current ratio of 1.76 and a debt-to-equity ratio of 0.39.

The Manitowoc (NYSE:MTW) last announced its quarterly earnings results on Thursday, February 8th. The industrial products company reported ($0.15) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.04) by ($0.11). The firm had revenue of $481.50 million for the quarter, compared to the consensus estimate of $423.27 million. The Manitowoc had a negative return on equity of 1.54% and a net margin of 0.59%. The company’s revenue for the quarter was up 27.3% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.24) earnings per share. research analysts anticipate that The Manitowoc will post 0.41 EPS for the current fiscal year.

In related news, SVP Thomas G. Musial sold 1,376 shares of the firm’s stock in a transaction on Wednesday, February 21st. The shares were sold at an average price of $32.07, for a total transaction of $44,128.32. Following the sale, the senior vice president now directly owns 48,467 shares in the company, valued at $1,554,336.69. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO David J. Antoniuk acquired 7,000 shares of the company’s stock in a transaction that occurred on Tuesday, March 13th. The shares were bought at an average price of $30.33 per share, for a total transaction of $212,310.00. Following the completion of the acquisition, the chief financial officer now owns 31,886 shares of the company’s stock, valued at $967,102.38. The disclosure for this purchase can be found here. Over the last 90 days, insiders have sold 9,179 shares of company stock worth $288,486. 1.40% of the stock is currently owned by company insiders.

Hedge funds have recently modified their holdings of the business. SeaCrest Wealth Management LLC acquired a new stake in The Manitowoc in the 4th quarter valued at $129,000. Jefferies Group LLC acquired a new stake in The Manitowoc in the 4th quarter valued at $225,000. Allianz Asset Management GmbH acquired a new stake in The Manitowoc in the 4th quarter valued at $227,000. AMP Capital Investors Ltd acquired a new stake in The Manitowoc in the 4th quarter valued at $252,000. Finally, Arrowstreet Capital Limited Partnership acquired a new stake in The Manitowoc in the 4th quarter valued at $448,000. Hedge funds and other institutional investors own 79.14% of the company’s stock.

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About The Manitowoc

The Manitowoc Company, Inc provides engineered lifting equipment for the construction industry in the Americas, Europe, Africa, the Middle East, and the Asia Pacific. It designs, manufactures, and distributes crawler-mounted lattice-boom cranes under the Manitowoc brand; a line of top-slewing and self-erecting tower cranes under the Potain brand; mobile telescopic cranes under the Grove brand; and a line of hydraulically powered telescopic boom trucks the National Crane brand.

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