why Meritor Inc. [MTOR] is a Good Choice for Investors After New Price Target of $32.25

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Meritor Inc. [NYSE: MTOR] slipped around -0.04 points on Thursday, while shares priced at $35.91 at the close of the session, down -0.11%. The company report on May 3, 2022 that Meritor Reports Second-Quarter Fiscal Year 2022 Results.

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Meritor, Inc. (NYSE: MTOR) today reported financial results for its second fiscal quarter that ended March 31, 2022.

Meritor Inc. stock is now 44.92% up from its year-to-date (YTD) trading value. MTOR Stock saw the intraday high of $36.01 and lowest of $35.90 per share. The company’s 52-week high price is 36.28, which means current price is +63.75% above from all time high which was touched on 04/20/22.

Compared to the average trading volume of 1.76M shares, MTOR reached a trading volume of 4277196 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Meritor Inc. [MTOR]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for MTOR shares is $32.25 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on MTOR stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Citigroup have made an estimate for Meritor Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on July 01, 2021. While these analysts kept the previous recommendation, BofA Securities raised their target price to Buy. The new note on the price target was released on June 18, 2021, representing the official price target for Meritor Inc. stock. Previously, the target price had yet another raise to $31, while RBC Capital Mkts analysts kept a Outperform rating on MTOR stock.

The Average True Range (ATR) for Meritor Inc. is set at 0.16, with the Price to Sales ratio for MTOR stock in the period of the last 12 months amounting to 0.65. The Price to Book ratio for the last quarter was 4.22, with the Price to Cash per share for the same quarter was set at 1.59. Price to Free Cash Flow for MTOR in the course of the last twelve months was 74.87 with Quick ratio for the last quarter at 0.80.

How has MTOR stock performed recently?

Meritor Inc. [MTOR] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.06. With this latest performance, MTOR shares gained by 1.15% in over the last four-week period, additionally plugging by 38.76% over the last 6 months – not to mention a rise of 33.79% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for MTOR stock in for the last two-week period is set at 63.51, with the RSI for the last a single of trading hit 55.89, and the three-weeks RSI is set at 66.28 for Meritor Inc. [MTOR]. The present Moving Average for the last 50 days of trading for this stock 35.66, while it was recorded at 35.93 for the last single week of trading, and 27.45 for the last 200 days.

Meritor Inc. [MTOR]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Meritor Inc. [MTOR] shares currently have an operating margin of +6.21 and a Gross Margin at +13.15. Meritor Inc.’s Net Margin is presently recorded at +5.22.

Return on Total Capital for MTOR is now 13.58, given the latest momentum, and Return on Invested Capital for the company is 11.96. Return on Equity for this stock inclined to 38.61, with Return on Assets sitting at 6.87. When it comes to the capital structure of this company, Meritor Inc. [MTOR] has a Total Debt to Total Equity ratio set at 190.42. Additionally, MTOR Total Debt to Total Capital is recorded at 65.57, with Total Debt to Total Assets ending up at 37.20. Long-Term Debt to Equity for the company is recorded at 184.84, with the Long-Term Debt to Total Capital now at 63.65.

Reflecting on the efficiency of the workforce at the company, Meritor Inc. [MTOR] managed to generate an average of $20,833 per employee. Receivables Turnover for the company is 7.57 with a Total Asset Turnover recorded at a value of 1.32.Meritor Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.80 and a Current Ratio set at 1.40.

Earnings analysis for Meritor Inc. [MTOR]

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for MTOR. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Meritor Inc. go to 21.70%.

Insider trade positions for Meritor Inc. [MTOR]

There are presently around $2,309 million, or 94.94% of MTOR stock, in the hands of institutional investors. The top three institutional holders of MTOR stocks are: BLACKROCK INC. with ownership of 11,595,074, which is approximately 7.792% of the company’s market cap and around 1.70% of the total institutional ownership; VANGUARD GROUP INC, holding 9,204,825 shares of the stock with an approximate value of $330.91 million in MTOR stocks shares; and PRICE T ROWE ASSOCIATES INC /MD/, currently with $128.98 million in MTOR stock with ownership of nearly -3.834% of the company’s market capitalization.

Positions in Meritor Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 111 institutional holders increased their position in Meritor Inc. [NYSE:MTOR] by around 8,756,837 shares. Additionally, 107 investors decreased positions by around 9,258,550 shares, while 39 investors held positions by with 46,217,700 shares. The mentioned changes placed institutional holdings at 64,233,087 shares, according to the latest SEC report filing. MTOR stock had 41 new institutional investments in for a total of 895,675 shares, while 31 institutional investors sold positions of 2,314,729 shares during the same period.