Nelson Peltz, Trian Partners Boost Stake in Ingersoll-Rand PLC

Nelson Peltz‘s Trian Partners has increased its exposure at Ingersoll-Rand PLC (NYSE:IR) to some 18.03 million shares, from around 12.9 million held earlier. The new stake amasses 6.26% of the company’s outstanding ordinary shares.

Ingersoll-Rand engages in the manufacturing of industrial and commercial goods. Share price has been in an uptrend, increasing by 39% year-to-date. Shares are currently traded at 67.55 and have a trailing Price to Earnings (P/E) ratio of 25.15. The forward P/E of 15.84 suggests market participants expect the company to improve its financial performance. Ingersoll-Rand stock has a beta of 1.51 and it pays a dividend of $1, which represents a yield of 1.5%. For the quarter ended September 30th, the company reported revenues of $3.7 billion and Earnings Per Share (EPS) of $0.56 per diluted share. A dividend of $0.21 was declared.

Experts are bullish on this stock, expecting the revenue to slightly decrease and the EPS to increase. The average estimate is Ingersoll-Rand’s fourth quarter revenues will decrease to 3.59 billion, while earnings will grow to $0.92 per share. The price of the stock is expected to fluctuate between $52 and $77, with the mean target being $69.6.

Allegion Spin-off

As Ingersoll-Rand prepares for the spin-off of one of its subsidiaries – Allegion – a special investor meeting was to take place today at 12:30 p.m. ET. Dave Petratis, chairman, president and chief executive officer, and Patrick Shannon, senior vice president and chief financial officer, are to brief the investors on the business of Allegion, it’s portfolio and future directions of development. Petratis said:

Allegion is a global provider of security solutions that help keep people safe where they live, work and visit. We have a portfolio of industry-leading brands, a record of quality and innovation, broad distribution channels with over 7,000 channel partners, a robust business operating system that drives operational excellence, and a sound strategy for future growth.

Disclosure: none

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