Aggressive’ Bearish Options Activity Seen in Rockwell Automation

 Aggressive' Bearish Options Activity Seen in Rockwell Automation

In today’s session Rockwell Automation (ROK) recorded an unusually high (576) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the November, 2016 put, expecting serious ROK decrease. With 576 contracts traded and 7334 open interest for the Nov, 16 contract, it seems this is a quite bearish bet. The option with symbol: ROK161118P00120000 closed last at: $4.9 or 19.5% up. About 111,259 shares traded hands. Rockwell Automation (NYSE:ROK) has risen 4.18% since April 1, 2016 and is uptrending. It has outperformed by 2.97% the S&P500.

Analysts await Rockwell Automation (NYSE:ROK) to report earnings on November, 8. They expect $1.49 EPS, down 5.10% or $0.08 from last year’s $1.57 per share. ROK’s profit will be $191.72 million for 19.89 P/E if the $1.49 EPS becomes a reality. After $1.55 actual EPS reported by Rockwell Automation for the previous quarter, Wall Street now forecasts -3.87% negative EPS growth.

Rockwell Automation (NYSE:ROK) Ratings Coverage

Out of 16 analysts covering Rockwell Automation (NYSE:ROK), 3 rate it a “Buy”, 4 “Sell”, while 9 “Hold”. This means 19% are positive. $141 is the highest target while $85 is the lowest. The $109.46 average target is -7.64% below today’s ($118.52) stock price. Rockwell Automation has been the topic of 31 analyst reports since September 9, 2015 according to StockzIntelligence Inc. Bank of America downgraded the shares of ROK in a report on Thursday, October 29 to “Underperform” rating. The firm has “Underperform” rating by Bernstein given on Thursday, January 28. The firm earned “Underperform” rating on Wednesday, September 9 by Sterne Agee CRT. The rating was initiated by Citigroup on Thursday, January 21 with “Neutral”. maintained the stock with “Neutral” rating in Monday, October 10 report. The firm earned “Neutral” rating on Monday, October 5 by Robert W. Baird. The firm has “Sell” rating given on Monday, October 3 by Berenberg. The company was downgraded on Wednesday, November 11 by Credit Agricole. As per Wednesday, November 11, the company rating was maintained by Deutsche Bank. Citigroup maintained Rockwell Automation (NYSE:ROK) rating on Tuesday, April 19. Citigroup has “Neutral” rating and $120 price target.

According to Zacks Investment Research, “Rockwell Automation is a leading global provider of industrial automation power, control and information solutions that help customers meet their manufacturing productivity objectives. The Company brings together leading brands in industrial automation for Complete Automation solutions, including Allen-Bradley controls and services, Dodge mechanical power transmission products, Reliance Electric motors and drives, and Rockwell Software factory management software.”

Insitutional Activity: The institutional sentiment increased to 1 in 2016 Q2. Its up 0.03, from 0.97 in 2016Q1. The ratio is positive, as 36 funds sold all Rockwell Automation shares owned while 186 reduced positions. 41 funds bought stakes while 180 increased positions. They now own 89.69 million shares or 11.28% less from 101.09 million shares in 2016Q1.
Livforsakringsbolaget Skandia Omsesidigt accumulated 14,734 shares or 0.07% of the stock. Pennsylvania Co accumulated 0.03% or 3,280 shares. Prudential Fincl Inc has 198,922 shares for 0.04% of their US portfolio. Alecta Pensionsforsakring Omsesidigt last reported 2.98M shares in the company. Bluecrest Capital Mgmt Limited owns 3,553 shares or 0.02% of their US portfolio. Raymond James Financial Services Advsr holds 0.03% of its portfolio in Rockwell Automation (NYSE:ROK) for 27,241 shares. Guggenheim Lc holds 197,722 shares or 0.07% of its portfolio. Dupont has 0.03% invested in the company for 10,900 shares. Cadence Cap Mngmt has 30,105 shares for 0.26% of their US portfolio. Euclid Advsrs Ltd has 0.03% invested in the company for 5,270 shares. Jane Street Gru Limited Liability Co holds 7,530 shares or 0% of its portfolio. Commonwealth Comml Bank Of has 9,740 shares for 0.01% of their US portfolio. Jpmorgan Chase & last reported 0.01% of its portfolio in the stock. Gabelli Funds holds 0.34% of its portfolio in Rockwell Automation (NYSE:ROK) for 500,400 shares. The New York-based Blackrock has invested 0.05% in Rockwell Automation (NYSE:ROK).

Insider Transactions: Since May 5, 2016, the stock had 0 insider buys, and 13 sales for $6.25 million net activity. On Monday, August 8 the insider Kulaszewicz Frank C sold $1.09M. MILLER JOHN M sold $210,136 worth of stock or 1,881 shares. $261,926 worth of Rockwell Automation (NYSE:ROK) was sold by DORGAN DAVID M on Tuesday, August 23. 686 shares were sold by MCCORMICK WILLIAM T JR/WI, worth $80,279 on Friday, August 5. On Thursday, May 19 the insider Parfet Donald R sold $519,188. Another trade for 2,000 shares valued at $250,924 was sold by Etzel Steven W.. Shares for $799,605 were sold by HAGERMAN DOUGLAS M on Monday, June 6.

Rockwell Automation, Inc. is a well-known provider of industrial automation power, control and information solutions for manufacturers. The company has a market cap of $15.25 billion. The Firm operates through two divisions: Architecture & Software and Control Products & Solutions. It has a 21.04 P/E ratio. The Architecture & Software segment contains various hardware, software and communication components of the Company’s integrated control and information architecture capable of controlling the customer’s industrial processes and connecting with their manufacturing enterprise.

ROK Company Profile

Rockwell Automation, Inc. (Rockwell Automation), incorporated on August 29, 1996, is a well-known provider of industrial automation power, control and information solutions for manufacturers. The Firm operates through two divisions: Architecture & Software and Control Products & Solutions. In the United States, Canada and certain other countries the Company sells primarily through the independent distributors. In the remaining countries, the Company sells through a combination of direct sales and sales through distributors. The Firm sells large systems and service offerings through its direct sales force.

More notable recent Rockwell Automation (NYSE:ROK) news were published by: Businesswire.com which released: “Molex Showcases Encompass Program Solutions at Rockwell Automation Fair® 2016” on November 03, 2016, also Businesswire.com with their article: “Rockwell Automation Names New President for Asia-Pacific Region” published on October 27, 2016, Bloomberg.com published: “Rockwell Automation Jumps Most Since February on Takeover Report” on October 21, 2016. More interesting news about Rockwell Automation (NYSE:ROK) were released by: Prnewswire.com and their article: “JMP Engineering Achieves Fourth Technology Designation with Rockwell Automation” published on October 18, 2016 as well as Fool.com‘s news article titled: “Is Rockwell Automation Stock Still a Good Value?” with publication date: October 11, 2016.

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