In a recent transaction, Warren E. Hoffner III, Vice President and General Manager of Fluid Power at Applied Industrial Technologies Inc. (NYSE:AIT), sold 4,000 shares of the company's common stock. The sale comes as the company, now valued at $10.5 billion, has delivered impressive returns with the stock up over 60% year-to-date according to InvestingPro data. The shares were sold at a weighted average price of $281.64 per share, resulting in a total transaction value of approximately $1.13 million. Following this sale, Hoffner retains direct ownership of 55,709 shares. Additionally, he holds 449.866 shares indirectly through the company's 401k plan. Trading near its 52-week high with a P/E ratio of 27.5, InvestingPro analysis suggests the stock is currently trading above its Fair Value. Investors can access 14 additional ProTips and comprehensive valuation metrics through InvestingPro's detailed research report.
In other recent news, Applied Industrial Technologies has made significant strides with its recent acquisition of Hydradyne, a prominent distributor in the fluid power and motion control sector, a move expected to boost its presence in the Eastern and Southeastern United States. This strategic acquisition is anticipated to be immediately accretive to Applied Industrial Technologies' adjusted earnings per share (EPS) in the first year. The deal, expected to be finalized by the end of 2024, has been positively noted by Baird for its favorable valuation.
The acquisition is projected to bring in an estimated $260 million in sales and $30 million in EBITDA. Additionally, Applied Industrial Technologies reported mixed results in its Q1 FY2025 earnings call. Despite a 3% year-over-year decline in organic daily sales, the company generated a record free cash flow and raised its EPS guidance for FY2025.
In terms of analyst coverage, Baird affirmed its Outperform rating and $250.00 price target for Applied Industrial Technologies following the Hydradyne deal announcement. BofA Securities upgraded Applied Industrial Technologies from Neutral to Buy, increasing the price target from $285 to $315, citing confidence in the company's mergers and acquisitions strategy. Oppenheimer also maintained its Outperform rating and a $305.00 price target for Applied Industrial Technologies post-acquisition. These are the recent developments surrounding Applied Industrial Technologies.
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