Zacks Investment Research Downgrades Enersys (ENS) to Sell

Enersys (NYSE:ENS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Thursday.

According to Zacks, “EnerSys’ shares have yielded a negative return over the past six months, comparing unfavorably to the industry’s average positive return. Volatility in the cost of commodities (particularly lead) has weighed upon the company’s profitability in recent times. To combat the lead price rise, EnerSys has already initiated price increases but its taking much longer than expected for the results to show. In addition, currency fluctuations and stiff competition in the industry are also eroding the company’s profits. EnerSys is in the midst of a transformation, wherein it has been undertaking multiple long-term investments to boost growth. However, these efforts are impacting the company’s gross profit percentage adversely in the near-term. Despite these negatives, EnerSys’ dominant position in the lead-acid battery market, diligent cost reduction efforts and financial health add to its strength.”

ENS has been the topic of several other reports. BidaskClub lowered Enersys from a “sell” rating to a “strong sell” rating in a research report on Thursday, July 27th. ValuEngine lowered Enersys from a “buy” rating to a “hold” rating in a research report on Saturday, August 26th. Oppenheimer Holdings, Inc. reiterated a “buy” rating and issued a $77.00 price objective (down from $82.00) on shares of Enersys in a research report on Wednesday. Finally, Sidoti upgraded Enersys from a “neutral” rating to a “buy” rating and set a $83.00 price objective on the stock in a research report on Thursday, August 17th. Two analysts have rated the stock with a sell rating, one has given a hold rating and two have assigned a buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus price target of $80.00.

Shares of Enersys (ENS) traded up $0.80 during midday trading on Thursday, hitting $68.75. The company had a trading volume of 248,777 shares, compared to its average volume of 286,610. The stock has a market cap of $2.98 billion, a PE ratio of 14.86, a price-to-earnings-growth ratio of 2.51 and a beta of 1.70. The company has a current ratio of 3.23, a quick ratio of 2.40 and a debt-to-equity ratio of 0.54. Enersys has a 52 week low of $61.33 and a 52 week high of $84.74.

Enersys (NYSE:ENS) last posted its quarterly earnings results on Wednesday, August 9th. The industrial products company reported $1.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.13 by ($0.01). Enersys had a return on equity of 18.90% and a net margin of 6.86%. The company had revenue of $622.60 million for the quarter, compared to the consensus estimate of $615.77 million. During the same quarter in the previous year, the business earned $1.14 earnings per share. Enersys’s revenue was up 3.7% compared to the same quarter last year. sell-side analysts anticipate that Enersys will post 4.68 earnings per share for the current fiscal year.

Enersys announced that its board has authorized a stock buyback plan on Wednesday, August 9th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the industrial products company to purchase up to 3.2% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s leadership believes its stock is undervalued.

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Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its position in shares of Enersys by 2.6% during the second quarter. Vanguard Group Inc. now owns 3,808,221 shares of the industrial products company’s stock valued at $275,907,000 after purchasing an additional 97,319 shares in the last quarter. Boston Partners raised its stake in Enersys by 1.6% during the third quarter. Boston Partners now owns 2,718,205 shares of the industrial products company’s stock valued at $188,019,000 after buying an additional 42,106 shares during the last quarter. Janus Henderson Group PLC purchased a new position in Enersys during the second quarter valued at $116,256,000. State Street Corp raised its stake in Enersys by 2.4% during the second quarter. State Street Corp now owns 1,467,084 shares of the industrial products company’s stock valued at $106,289,000 after buying an additional 34,872 shares during the last quarter. Finally, Earnest Partners LLC raised its stake in Enersys by 12.7% during the second quarter. Earnest Partners LLC now owns 1,345,647 shares of the industrial products company’s stock valued at $97,492,000 after buying an additional 151,963 shares during the last quarter. Institutional investors own 93.35% of the company’s stock.

About Enersys

EnerSys is a manufacturer, marketer and distributor of industrial batteries. The Company manufactures, markets and distributes related products, such as chargers, power equipment, outdoor cabinet enclosures and battery accessories, and provides related after-market and customer-support services for industrial batteries.

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