Swedbank AB has decreased its investment in Hubbell Inc (NYSE:HUBB) by 4.0% during the third quarter of 2023. According to a recent filing with the Securities and Exchange Commission, the bank now holds 27,606 shares of the industrial products company, down from 28,763 shares after selling 1,157 shares during the period. Swedbank’s current stake in Hubbell is valued at approximately $11.88 million, representing about 0.05% of the company.
Several other institutional investors have also adjusted their holdings in Hubbell. For instance, Central Pacific Bank Trust Division acquired a new stake valued at $29,000 in the second quarter, while Cullen Frost Bankers Inc. increased its investment by 400%, owning 85 shares worth $35,000 after adding 68 shares during the same period. Ransom Advisory Ltd and Johnson Financial Group Inc. also established new positions, with Johnson Financial increasing its holdings by 185.4% to 137 shares valued at $56,000.
As of now, institutional investors collectively own 88.16% of Hubbell’s stock.
Insider Transactions and Earnings Report
In related developments, insider transactions have seen significant activity. On November 3, Alyssa R. Flynn sold 2,011 shares of Hubbell, generating a total of $945,813.52 at an average price of $470.32 per share. Following this sale, Flynn holds 3,243 shares valued at approximately $1.53 million. This transaction marked a 38.28% decrease in her holdings.
Similarly, on November 5, Mark Eugene Mikes sold 2,470 shares at an average price of $466.50, totaling $1.15 million. Post-sale, Mikes retained 4,785 shares valued at about $2.23 million, reflecting a 34.05% reduction in his ownership.
Corporate insiders own 0.66% of Hubbell’s stock, highlighting a trend of active trading among company executives.
Hubbell also released its quarterly earnings report on October 28, 2023. The company reported earnings per share (EPS) of $5.17, surpassing analysts’ expectations of $4.98 by $0.19. Revenue for the quarter reached $1.50 billion, slightly below the anticipated $1.54 billion. The company’s net margin was 15.24%, with a return on equity of 27.68%. This revenue reflects a 4.1% increase compared to the same quarter last year, when Hubbell recorded an EPS of $4.49. The company has set its full-year guidance for 2025 at an EPS range of $18.10 to $18.30.
Dividend Increase and Analyst Ratings
Hubbell has also announced an increase in its quarterly dividend, which was paid on December 15, 2023. Shareholders on record as of November 28 received a dividend of $1.42 per share, up from the previous $1.32. This adjustment translates to an annualized dividend of $5.68 and a yield of 1.2%. The company’s dividend payout ratio currently stands at 35.24%.
Analysts have been active in updating their ratings for Hubbell. Mizuho raised its price target from $475.00 to $480.00 while maintaining an “outperform” rating. Evercore ISI initiated coverage with an “outperform” rating and a target price of $575.00. Barclays increased its target from $431.00 to $456.00, and Wells Fargo boosted its price objective from $490.00 to $500.00. Currently, five analysts rate Hubbell as a Buy, while three recommend a Hold, leading to a consensus rating of “Moderate Buy” with an average target price of $488.43.
Founded in 1888 by Harvey Hubbell, Hubbell Incorporated is a Connecticut-based industrial manufacturer and distributor of electrical and electronic products. The company serves various sectors, including commercial and residential construction, industrial, and utilities, and is known for its innovation in electrical product development.
