Price Action Alert: Is Major Move Coming For Rockwell Automation After This Gap Up?

Price Action Alert: Is Major Move Coming For Rockwell Automation After This Gap Up?

The stock of Rockwell Automation (NYSE:ROK) gapped up by $0.94 today and has $198.19 target or 62.00% above today’s $122.34 share price. The 8 months technical chart setup indicates low risk for the $15.75 billion company. The gap was reported on Oct, 1 by If the $198.19 price target is reached, the company will be worth $9.77B more.
Gaps up are useful for using as a support level and to some extent as a tradeable event. If investors already hold the stock and experience a price gap up, then its usually a good idea to hold the stock for a stronger up move. Back-tests of these patterns indicate that two-thirds of the times the stock performance improves after the gap. The area gaps close 89% of the time, the breakaway gaps, 2%, the continuation gaps 4% and the exhaustion gaps 61%. The stock increased 4.46% or $5.22 on September 30, hitting $122.34. About 2.57 million shares traded hands or 294.58% up from the average. Rockwell Automation (NYSE:ROK) has risen 17.53% since February 29, 2016 and is uptrending. It has outperformed by 7.11% the S&P500.

Analysts await Rockwell Automation (NYSE:ROK) to report earnings on November, 8. They expect $1.49 earnings per share, down 5.10% or $0.08 from last year’s $1.57 per share. ROK’s profit will be $191.82 million for 20.53 P/E if the $1.49 EPS becomes a reality. After $1.55 actual earnings per share 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 12 analysts covering Rockwell Automation (NYSE:ROK), 2 rate it a “Buy”, 3 “Sell”, while 7 “Hold”. This means 17% are positive. Rockwell Automation has been the topic of 27 analyst reports since September 9, 2015 according to StockzIntelligence Inc. The stock has “Underperform” rating given by Bank of America on Thursday, October 29. Credit Agricole downgraded the shares of ROK in a report on Wednesday, November 11 to “Underperform” rating. The stock of Rockwell Automation (NYSE:ROK) earned “Underperform” rating by Sterne Agee CRT on Wednesday, September 9. The firm earned “Underperform” rating on Wednesday, November 11 by CLSA. The stock of Rockwell Automation (NYSE:ROK) has “Mkt Perform” rating given on Friday, September 30 by Bernstein. As per Tuesday, April 19, the company rating was maintained by Citigroup. The firm has “Underperform” rating by Bernstein given on Thursday, January 28. The firm has “Market Perform” rating by FBR Capital given on Wednesday, May 11. On Wednesday, November 11 the stock rating was maintained by Deutsche Bank with “Buy”. As per Thursday, April 28, the company rating was downgraded by Langenberg.

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 Q2 2016. 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.
Mycio Wealth Prns Limited Liability Corporation has 0% invested in the company for 13 shares. State Of Alaska Department Of Revenue owns 10,340 shares or 0.12% of their US portfolio. Next Gru holds 0.04% of its portfolio in Rockwell Automation (NYSE:ROK) for 973 shares. New Mexico Educational Retirement Board accumulated 0.08% or 15,226 shares. Ledyard Natl Bank has 44,945 shares for 0.93% of their US portfolio. Paloma, a Connecticut-based fund reported 36,717 shares. Financial Bank Of Nova Scotia holds 0% of its portfolio in Rockwell Automation (NYSE:ROK) for 2,625 shares. Rockland Tru last reported 0.3% of its portfolio in the stock. Principal Financial Grp Inc reported 195,662 shares or 0.03% of all its holdings. Grantham Mayo Van Otterloo & Ltd Limited Liability Company last reported 567,623 shares in the company. Tci Wealth owns 259 shares or 0.02% of their US portfolio. Godsey & Gibb Assoc holds 91,520 shares or 1.91% of its portfolio. Bank Of New York Mellon has 1.10M shares for 0.04% of their US portfolio. Moreover, First Manhattan has 0% invested in Rockwell Automation (NYSE:ROK) for 5,212 shares. Patten Group Inc Inc, a Tennessee-based fund reported 47 shares.

Insider Transactions: Since April 13, 2016, the stock had 0 insider purchases, and 13 insider sales for $6.20 million net activity. $416,548 worth of shares were sold by HAGERMAN DOUGLAS M on Wednesday, August 10. Parfet Donald R sold 4,674 shares worth $519,188. DORGAN DAVID M sold $261,926 worth of stock or 2,200 shares. MCCORMICK WILLIAM T JR/WI had sold 686 shares worth $80,279 on Friday, August 5. $1.09 million worth of Rockwell Automation (NYSE:ROK) shares were sold by Kulaszewicz Frank C. Chand Sujeet also sold $571,891 worth of Rockwell Automation (NYSE:ROK) shares. $210,136 worth of Rockwell Automation (NYSE:ROK) was sold by MILLER JOHN M.

More important recent Rockwell Automation (NYSE:ROK) news were published by: which released: “Rockwell Automation (ROK) Stock Advancing, Bernstein Upgrades” on September 30, 2016, also published article titled: “Rockwell Automation Enters Oversold Territory”, published: “Rockwell Automation acquires Georgia firm” on September 12, 2016. More interesting news about Rockwell Automation (NYSE:ROK) was released by: and their article: “Rockwell Automation to Gain from New Products, Risks Stay” with publication date: September 15, 2016.

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.

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