Does a Deutsche Bank Downgrade Make Shares of Terex (NYSE:TEX) a Sell?


Terex (NYSE:TEX) Receives a Downgrade

Deutsche Bank has just given shares of Terex (NYSE:TEX)an updated Hold rating in analysts note distributed to Clients on Thursday, 17 December. This is a downgrade from the previous Buy rating that they had set. The equities firm now has a $20.0 target price on firm, which suggests the potential for a 6.95% upside.

From a total of 19 analysts covering Terex Corporation (NYSE:TEX) stock, 7 rate it a ”Buy”, 1 a “Sell”, and 14 a ”Hold”. This means that 32% of the ratings are positive. The highest target price is $32 while the lowest target price is $17. The mean of all analyst targets is $23.12 with a 35.01% above today’s ($18.85) stock price. Terex Corporation was the topic of 17 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. Barclays Capital initiated shares on September 25 with “Equal-Weight” rating. Stifel Nicolaus maintained TEX stock in a recent report from August 12 with “Buy” rating. Finally, BB&T Capital downgraded the stock to “Hold” rating in a report issued on a July 31.

Approximately 444,886 shares of stock traded hands. Terex Corporation (NYSE:TEX) has declined 34.98% since May 14, 2015 and is downtrending. It has underperformed by 32.71% the S&P500.

The overall sentiment of institutions has decreased to 0.96 in Q2 2015. Its down 0.30, from 1.26 in 2015Q2. The ratio fall, as 71 institutions have sold all the shares of Terex Corporation that they owned while 75 funds have taken shares off the table. 38 funds have purchased shares for the first time while 102 added to their positions. These institutions now hold 80.34 million shares or 14.68% less than the 94.17 million shares they owned in 2015Q2.

The Fund Wilsey Asset Management Inc currently is holding shares equating to 3.62% of its total portfolio in Terex Corporation representing a total of 261,344 shares. Another fund,Minneapolis Portfolio Management Group Llc, is holding a total of 910,245 shares equating to 2.73% of their holdings. Additionally, Elm Ridge Management Llc has a 994,256 share stake in Terex Corporation which represents 2.6% of their total portfolio. The Fund, Schneider Capital Management Corp, based out of Pennsylvania, has also built up a stake in the stock, which represents a total of 2.44% of their total portfolio. Finally Stanley Capital Management Llc, a fund which is based in the state of Texas reported a total holdings of 119,724 shares.

Insider activity is a very important aspect to track on any stock. Going back to March 9, 2015, shareholders of Terex Corporation have witnessed 7 insider buys, and a total of 6 insider sales equating to a net activity of approximately $1.45 million . Filipov Steve sold 10,312 shares worth approximately $199,331. Ford Timothy A sold 25,000 shares worth approximately $500,000. Barr Kevin A bought 13 shares worth approximately $237. Bradley Kevin bought 63 shares worth approximately $1,149. The company insider Lousberg Kenneth D. bought 95 shares worth $1,733.

Terex Corporation is a lifting and material handling solutions company. The company has a market cap of $2.05 billion. The Firm is focused providing its activities and delivering solutions for a range of commercial applications, including the construction, infrastructure, quarrying, mining, manufacturing, transportation, energy and utility industries. It has 9.92 P/E ratio. The Firm operates in business divisions: Aerial Work Platforms, Construction, Cranes, Material Handling & Port Solutions, and Materials Processing.

According to Zacks Investment Research, “Terex Corp. is a global manufacturer of a broad range of construction and mining related capital equipment. The company strives to manufacture high quality machines which are low cost, simple to use and easy to maintain. The company’s principal products include telescopic mobile cranes, aerial work platforms, utility aerial devices, telescopic material handlers, truck mounted mobile cranes, rigid and articulated off-highway trucks and high capacity surface mining trucks, and related components and replacement parts.”