Stock Price & Analysis

Sell AIT stock as it has shown a decline of over 16% since December 2024 amid broader small-cap market challenges.

The price prediction for AIT stock in 2025 is $290. This forecast is supported by bullish analyst sentiment, with an average price target of $297.00, and technical indicators suggesting potential upside as the stock approaches key resistance levels.

The S1 support level for AIT Stock is $220.04 ,The R1 resistant level for AIT Stock is $247.19.

As of the end of day on 2025-03-14, the price of AIT Stock was $224.71.

The target price for AIT Stock according to analyst rating is 294.00, with the highest price target at 325.00 and the lowest at 265.00. Analysts have a Strong Buy rating on AIT Stock overall.

The market cap of AIT is $8.6B.

Analysis and Insights

To determine whether AIT is overvalued, we analyze its valuation metrics, recent price trends, and analyst sentiment.

Valuation Metrics:

AIT's current valuation metrics are as follows:

• PE Ratio: 22.76 (Q1 2025) and 24.25 (Q2 2025)
• EV/EBITDA: 15.96 (Q1 2025) and 17.31 (Q2 2025)
• PS Ratio: 1.95 (Q1 2025) and 2.09 (Q2 2025)
• PB Ratio: 4.90 (Q1 2025) and 5.12 (Q2 2025)
• Dividend Yield: 0.65% (Q1 2025) and 0.62% (Q2 2025)

These metrics indicate a premium valuation, with the PE and EV/EBITDA ratios suggesting high expectations for future growth.

Price Trends:

AIT's price has declined 16.09% since December 2024, reflecting broader small-cap market weakness, with the Russell 2000 dropping nearly 15% in the same period.

Analyst Sentiment:

Analysts have raised price targets, with Raymond James increasing to $265 and Baird to $275, indicating confidence in AIT's growth potential despite valuation concerns.

Conclusion:

AIT appears overvalued based on its high PE and EV/EBITDA ratios. However, positive analyst sentiment and the company's fundamentals may justify some of the premium. Investors should exercise caution and consider waiting for a more favorable entry point or further evidence of growth.

Applied Industrial Technologies, Inc. is a value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies. The Company’s segments include Service Center Based Distribution and Engineered Solutions. The Service Center Based Distribution segment operates through local service centers and distribution centers with a focus on providing products and services addressing the maintenance and repair of motion control infrastructure and production equipment. Its products include industrial bearings, motors, belting, drives, couplings, pumps, linear motion products, hydraulic and pneumatic components, filtration supplies, and hoses. The Engineered Solutions segment includes its operations that specialize in distributing, engineering, designing, integrating, and repairing hydraulic and pneumatic fluid power technologies, and engineered flow control products and services.

The price prediction for AIT stock in 2030 is $310 per share. This forecast is based on the company's strong earnings performance, recent analyst upgrades, and a positive outlook in the industrial sector.

AIT has a total of 6200 employees.