Verdence Capital Advisors Acquires Stake in Parker-Hannifin Corporation

Verdence Capital Advisors LLC has made a significant move by purchasing a new stake in Parker-Hannifin Corporation (NYSE: PH) during the second quarter of 2023. According to the company’s latest 13F filing with the U.S. Securities and Exchange Commission (SEC), the investment firm acquired 290 shares valued at approximately $203,000. This decision reflects growing interest among institutional investors in the industrial products sector.

Several other institutional investors have also adjusted their holdings in Parker-Hannifin recently. Brighton Jones LLC increased its stake by 5.9% in the fourth quarter, bringing its total to 1,808 shares valued at $1.15 million after acquiring an additional 101 shares. Similarly, Bison Wealth LLC raised its position by 4.5% during the same period, now owning 749 shares worth $476,000 after purchasing 32 additional shares.

In the first quarter, GAMMA Investing LLC raised its stake by 8.9%, increasing its holdings to 2,855 shares valued at $1.735 million. Grimes & Company Inc. also boosted its position by 7.7%, now owning 461 shares valued at $280,000. Additionally, Robertson Stephens Wealth Management LLC expanded its holdings by 3.9%, totaling 1,185 shares valued at $721,000. Overall, hedge funds and institutional investors now own approximately 82.44% of Parker-Hannifin’s stock.

Insider Transactions and Recent Performance

In related news, insider trading activity was noted with VP Robert W. Malone selling 2,257 shares on August 8, 2023, at an average price of $730.66, totaling nearly $1.65 million. Following this sale, Malone’s ownership decreased by 27.79%, leaving him with 5,866 shares valued at around $4.29 million. Another vice president, Thomas C. Gentile, sold 1,133 shares on the same day for approximately $826,524, resulting in a 17.17% decrease in his ownership.

Over the past quarter, insiders have sold a total of 14,039 shares valued at $10.36 million. Company insiders now hold 0.32% of Parker-Hannifin’s stock.

Parker-Hannifin’s shares opened at $724.88 on Friday, reflecting a 1.8% decrease. The company has a market capitalization of $91.73 billion, a price-to-earnings (P/E) ratio of 26.73, and a beta of 1.35. Its 50-day simple moving average stands at $750.37, while the 200-day simple moving average is at $688.28. The stock’s 1-year performance shows a low of $488.45 and a high of $779.77.

Financial Results and Future Outlook

On August 7, 2023, Parker-Hannifin released its earnings report for the quarter, revealing earnings per share of $7.69, surpassing analysts’ expectations of $7.08 by $0.61. The company reported quarterly revenue of $5.24 billion, also exceeding forecasts of $5.10 billion. Parker-Hannifin achieved a return on equity of 26.80% and a net margin of 17.79%, with revenue up 1.1% compared to the same quarter last year, when the firm posted $6.77 EPS.

Looking ahead, Parker-Hannifin has set its fiscal year 2026 guidance between $28.40 and $29.40 EPS. Analysts estimate the company will post $26.71 EPS for the current fiscal year.

Additionally, Parker-Hannifin announced a quarterly dividend of $1.80 per share, which was paid on September 12, 2023. Shareholders on record as of September 2 received this dividend, representing an annualized payout of $7.20 and a dividend yield of 1.0%. The company’s current payout ratio stands at 26.55%.

Parker-Hannifin Corporation specializes in manufacturing and selling motion and control technologies across various markets, including mobile, industrial, and aerospace sectors. The company operates two primary segments: Diversified Industrial and Aerospace Systems, providing a range of products and solutions to ensure efficiency and safety in diverse applications.