4. Parker-Hannifin Corporation (NYSE:PH)
Number of Hedge Fund Holders: 35
Parker-Hannifin Corporation (NYSE:PH) was founded in 1917 and is headquartered in Cleveland, Ohio. The company manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. On October 26, Parker-Hannifin Corporation (NYSE:PH) declared a quarterly dividend of $1.33 per share. The dividend is distributable on December 2, to shareholders of the company as of November 14.
Stifel analyst Nathan Jones on October 11 reaffirmed a Buy recommendation on Parker-Hannifin Corporation (NYSE:PH) and lowered the price target on the shares to $280 from $325. Market indicators point towards some weakening of short cycle industrial demand, noted the analyst, who goes into the Q3 earnings season for the Americas multi-industry group “cautious on short cycle industrial” and leans towards energy, infrastructure, and water names in general.
According to Insider Monkey’s second quarter database, 35 hedge funds reported owning stakes worth $1.07 billion in Parker-Hannifin Corporation (NYSE:PH), compared to 39 funds in the earlier quarter worth $1.3 billion. Andreas Halvorsen’s Viking Global held the biggest position in the company, comprising over 3 million shares valued at $755.5 million.
Here is what Oakmark Fund specifically said about Parker-Hannifin Corporation (NYSE:PH) in its second quarter 2022 investor letter:
“Parker-Hannifin Corporation (NYSE:PH), a U.S. company that specializes in motion and control technologies, is suffering from what we believe are investor misunderstandings and misjudgments, despite the efforts of the company’s unusually strong management team. In our opinion, since his promotion in 2015, CEO Thomas Williams has vastly improved operations and shifted the product portfolio to longer cycled, higher growth, higher margin and higher return end markets. The results are impressive. Margins, returns and earnings have increased substantially. With the expected closing of the Meggitt acquisition in the September quarter, the highly depressed aerospace segment will be its largest end market. We anticipate a rebound in aerospace revenue, which—combined with the company’s strong position in attractive businesses, including clean technologies and factory automation—should accelerate revenue growth. Parker Hannifin trades at a discount to other high-quality industrials, which we believe is unwarranted since its growth and returns should be similar or better. At a low-teens multiple of next year’s normalized cash earnings, Parker Hannifin is an attractive investment, in our view.”
