CLEVELAND, OH - Applied Industrial Technologies Inc. (NYSE:AIT), a leading industrial distributor, announced the results of its annual shareholder meeting held on Tuesday. The company reported that shareholders approved all items on the meeting agenda, including the election of directors and advisory approval of executive compensation.
During the meeting, shareholders voted on the election of three directors for a three-year term. Madhuri A. Andrews, Shelly M. Chadwick, and Vincent K. Petrella were elected with over 31 million votes each. The election saw shares withheld ranging from approximately 1.1 million to 3.3 million per candidate, with broker non-votes totaling around 1.2 million for each.
In a nonbinding advisory vote, shareholders also showed strong support for the compensation of Applied's named executive officers. The approval was significant, with over 33 million shares voted in favor, compared to approximately 1.3 million against and 76,722 abstentions.
Additionally, the appointment of Deloitte & Touche LLP as the company's independent auditors for the fiscal year ending June 30, 2025, was ratified with an overwhelming majority. Over 35 million shares were voted in favor, with 636,617 against and 40,367 abstaining.
In other recent news, Applied Industrial Technologies has been the subject of various analyst adjustments following its fiscal 2024 fourth-quarter results. The company reported double-digit earnings growth, improved gross margins nearing 31%, and EBITDA margins surpassing 13%. However, sales saw a 2% decline, and the company projects a drop in sales in the first half of fiscal 2025. For fiscal 2025, the company projects an EPS in the range of $9.20 to $9.95 and total sales change from -2.5% to 2.5%.
Mizuho initiated coverage on Applied Industrial Technologies with an Outperform rating and a price target of $285, emphasizing the company's potential for mergers and acquisitions. KeyBanc raised the price target to $245.00 from the previous $215.00, maintaining an Overweight rating. Baird raised the stock price target to $210, up from $205, while maintaining an Outperform rating. Oppenheimer also sustained its Outperform rating and $235.00 price target for the company.
InvestingPro Insights
Applied Industrial Technologies Inc. (NYSE:AIT) continues to demonstrate strong financial performance and shareholder value, as reflected in the recent annual meeting results. InvestingPro data shows that AIT has a market capitalization of $8.62 billion and a P/E ratio of 22.49, indicating investor confidence in the company's earnings potential.
Two key InvestingPro Tips highlight AIT's commitment to shareholder returns: the company has raised its dividend for 14 consecutive years and has maintained dividend payments for an impressive 54 consecutive years. This consistent dividend policy aligns with the strong shareholder support seen in the meeting's voting outcomes.
The company's financial health is further underscored by its profitability over the last twelve months and analysts' predictions of continued profitability this year. With a one-year price total return of 48.44% as of the latest data, AIT has shown robust stock performance, which may have contributed to the positive shareholder sentiment expressed in the meeting.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips on AIT, providing deeper insights into the company's financial position and market performance.
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