Stock of the Day

October 23, 2020

Ingersoll Rand (IR)

$80.94
+$0.76 (+0.9%)
Market Cap: $31.67B

About Ingersoll Rand

Ingersoll Rand Inc. provides various mission-critical air, gas, liquid, and solid flow creation technologies services and solutions worldwide. It operates through two segments, Industrial Technologies and Services, and Precision and Science Technologies. The Industrial Technologies and Services segment designs, manufactures, markets, and services air and gas compression, vacuum, and blower products; fluid transfer equipment and loading systems; and power tools and lifting equipment, including associated aftermarket parts, consumables, air treatment equipment, controls, other accessories, and services under the under the Ingersoll Rand, Gardner Denver, Nash, CompAir, Elmo Rietschle brands, etc. The Precision and Science Technologies segment designs, manufactures, and markets diaphragm, piston, water-powered, peristaltic, gear, vane, progressive cavity, and syringe pumps; and gas boosters, hydrogen compression systems, automated liquid handling systems, odorant injection systems, controls, software, and other related components and accessories for liquid and gas dosing, transfer, dispensing, compression, sampling, pressure management, and flow control in specialized or critical applications under the Air Dimensions, Albin, ARO, Dosatron, Haskel, Ingersoll Rand, LMI, Maximus, Milton Roy, MP, Oberdorfer, Seepex, Thomas, Welch, Williams, YZ, and Zinnser Analytic brand names. This segment's products are used in medical, life sciences, industrial manufacturing, water and wastewater, chemical processing, energy, food and beverage, agriculture, and other markets. It sells through an integrated network of direct sales representatives and independent distributors. The company was formerly known as Gardner Denver Holdings, Inc. and changed its name to Ingersoll Rand Inc. in March 2020. Ingersoll Rand Inc. was founded in 1859 and is headquartered in Davidson, North Carolina.

Ingersoll Rand Bull Case

Here are some ways that investors could benefit from investing in Ingersoll Rand Inc.:

  • The firm reported a quarterly revenue increase of 7.6% compared to the same quarter last year, indicating strong growth potential.
  • Ingersoll Rand Inc. has set its FY 2026 guidance at an EPS range of 3.450-3.570, suggesting confidence in future earnings performance.
  • The current stock price is around $88, which may present a buying opportunity for investors looking for value.
  • The company has a low dividend payout ratio of 5.41%, allowing for reinvestment in growth opportunities while still providing a small dividend yield of 0.1%.
  • Analysts have a "Moderate Buy" rating on the stock, with an average target price of approximately $92.71, indicating potential upside for investors.

Ingersoll Rand Bear Case

Investors should be bearish about investing in Ingersoll Rand Inc. for these reasons:

  • Recent insider selling, including a significant transaction where an insider sold over 30,000 shares, may raise concerns about the company's future prospects.
  • Some analysts have downgraded their price targets for Ingersoll Rand Inc., reflecting a cautious outlook on the stock's performance.
  • The company has a relatively low dividend yield of 0.1%, which may not be attractive for income-focused investors.
  • Despite revenue growth, the net margin of 7.54% suggests that profitability may be under pressure, which could impact future earnings.
  • Market volatility and economic uncertainties could pose risks to the industrial sector, affecting Ingersoll Rand Inc.'s performance.

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