United Technologies Corporation (UTX) Ready To Kick Into High Gear

Analysts at RBC Capital Mkts cut their rating on shares of United Technologies Corporation (NYSE:UTX) from Outperform to Sector Perform in their opinion released on January 04. Analysts at Robert W. Baird are sticking to their Neutral recommendation. However, on September 20, they lifted target price for these shares to $167 from $156. Analysts at Robert W. Baird, made their first call for the stock with a Neutral rating, according to a research note that dated back to September 20.

By watching the trading activity of corporate insiders, it will become easier to get a sense of United Technologies Corporation (NYSE:UTX)’s prospects. The earliest insider trade took place on 01/30/2019. Dumais Michael R parted with a total of 9.62 thousand shares of company at average share price of $119.12. The total for the sales was set at $1.15 million. After this transaction, the EVP, Operations & Strategy account balance stood at 18.35 thousand shares. The stock lost -0.12 percent since that insider sale. On 07/31/2018, Bailey Robert J., Corporate VP, Controller, sold 0.83 thousand shares at a price per share of $134.75. This removed 111.57 thousand shares from the insider’s fortune and the stock saw a -11.7 percent retreat in value since the news became public. This transaction left 4.18 thousand shares in the Corporate VP, Controller account. On 07/26/2018, Executive VP & General Counsel Gill Charles D performed a sale transaction worth $1.94 million. This sale at $136.43 each has eliminated 14.26 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -12.79 percent decrease since the transaction was reported. The insider now is left with 34.95 thousand shares remaining in the account. Johri Akhil, who performs the Executive VP and CFO job, sold 3.43 thousand shares for $465.59 thousand. The disposal occurred on 07/26/2018 was priced at $135.82 per share. The share price plunged -12.4 percent since the reporting date. Johri Akhil now left with a stake of 40.59 thousand UTX stock worth $4.84 million after the insider selling.

United Technologies Corporation (UTX) is expected to jump by 17.11 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $185price as 12-month high target. This represents a whopping 55.28 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $141, which represents a return potential of 18.35 percent when compared to the closing price of the stock of $119.14 on Monday, February 04. The lowest price target for the stock is $120 — slightly more than 0.72 percent from UTX’s current share price.

The shares are currently floating around the first support level of $118.26. Below this, the next support is placed in the zone of $117.39. Till the time, the UTX stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 60.13 on daily chart, which may remain a cause for concern. If the price breaks below $117.39 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $119.63 mark may result into a pull-back move towards $120.13 level.

UTX shares accumulated 0.16 points or 0.13 percent on Monday to $119.14 with a light trade volume of 4.925 million shares. After opening the session at $118.99, the shares went as high as $119.25 and as low as $117.88, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $103 billion and now has 861.52 million shares outstanding. United Technologies Corporation (UTX) stock has gained 15.13 percent of market value in 21 trading days.

UTX stock has a trailing 3-year beta of 1.16, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $5.78 a share in the trailing twelve months. The stock’s value has surged 11.89 percent year to date (YTD) against a decline of -13.87 percent in 12 month’s time. The company’s shares still trade -17.35 percent away from its 1-year high of $144.15 and 18.57 percent up from 52-week low of $100.48. The average consensus rating on the company is 2.2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of United Technologies Corporation (UTX) are trading at a P/E ratio of 17.15 times earnings reported for the past 12 months. The industry UTX operates in has an average P/E of 26.97. Its P/E ratio went as low as 17.28X and as high as 21.23 over the 5-year span. Further, it is sporting a 1.54 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.33. 25 percent is the gross profit margin for United Technologies Corporation and operating margin sits at 13.4 percent. Along with this, the net profit margin is 7.6 percent.

UTX will be showing off its Q1 earnings on April 23. Analysts are forecasting revenue to climb 18.4 percent to $18.1B in the next fiscal quarter, while earnings are seen soaring by nearly -1.69 percent to $1.74 per share. History has shown that shares in United Technologies Corporation have gone up on 20 different earnings reaction days and are predicted to add 0.01 percent when the company reports upcoming earnings. In last reported earnings results, it earned $1.95 per share, better than the $1.53, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $16.5B, better than the $16.2B analysts expected. Earnings are estimated to increase by 7 percent this year, 9.88 percent next year and continue to increase by 8.45 percent annually for the next 5 years.