Manufacturing company Hillenbrand announced on Friday that it has agreed to acquire plastics-processing equipment maker Milacron Holdings in a $2 billion deal (including debt). The deal is expected to close in the first quarter of 2020.
Under the cash-and-stock deal, Milacron shareholders will get $11.80 in cash and a fixed exchange ratio of 0.1612 of Hillenbrand shares for each share of Milacron common stock they own.
The deal will also include net debt of about $686 million.
Hillenbrand expects that the acquisition would increase adjusted earnings in the "double-digit" range in the first year after closing, and generate annualized cost synergies of about $50 million within three years.
HI moved above its 50-day moving average on April 19, 2024 date and that indicates a change from a downward trend to an upward trend. In of 41 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 56 cases where HI's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for HI just turned positive on April 23, 2024. Looking at past instances where HI's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where HI advanced for three days, in of 311 cases, the price rose further within the following month. The odds of a continued upward trend are .
HI may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 191 cases where HI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Momentum Indicator moved below the 0 level on April 10, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on HI as a result. In of 91 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The 10-day moving average for HI crossed bearishly below the 50-day moving average on April 19, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HI declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.054) is normal, around the industry mean (5.264). P/E Ratio (34.824) is within average values for comparable stocks, (49.901). HI's Projected Growth (PEG Ratio) (0.737) is slightly lower than the industry average of (2.219). Dividend Yield (0.018) settles around the average of (0.022) among similar stocks. P/S Ratio (1.180) is also within normal values, averaging (9.714).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. HI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock slightly better than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of casket products
Industry IndustrialMachinery