Price target for Makino Milling Machine (TYO:6135) increases by 6.77% to 6,970.00

The one-year average price target for Makino Milling Machine (TYO:6135) has been revised upward to 6,970.00 yen per share. This represents an increase of 6.77% compared to the previous estimate of 6,528.00 yen from August 31, 2023.

The latest targets range from a minimum of 5,252.00 to a maximum of 9,450.00 yen per share. The average target price represents an increase of 14.83% from the last reported closing price of 6,070.00 yen.

How curious! While the U.S. tech market is crashing with AMD falling 7.72% and NVIDIA 4.89%, this Japanese company is receiving a more optimistic valuation. I wonder if analysts are seeing something that the rest of the market is not perceiving.

Makino maintains a dividend yield of 2.47%

At the most recent price, the company's dividend yield is 2.47%. Its dividend payout ratio is only 0.20, which means it only distributes 20% of its earnings. This suggests that the company is retaining capital for future investments, which could be positive for long-term growth.

The 3-year dividend growth rate is 6.50%, demonstrating a commitment to the progressive increase of shareholder payments. However, will this growth be sustainable in such a cyclical sector as industrial machinery?

Fund Sentiment

There are 63 funds or institutions reporting positions in Makino Milling Machine, representing a decrease of 4 owners (5.97%) in the last quarter. The average weight of the portfolio of all funds dedicated to 6135 is 0.05%, a decrease of 9.53%.

Total shares in institutional hands decreased by 8.87% over the last three months to 2,292,000 shares. This makes me question: if large funds are reducing positions, should retail investors follow their example?

Among the main shareholders are funds such as DFA International Small Cap Value Portfolio, Hartford International Value Fund, and Vanguard Total International Stock Index Fund. It is interesting to note that several of these have recently reduced their positions, while others have kept their holdings unchanged.

Hartford International Value Fund reduced its position by a dramatic 27.76%, from 357,000 to 280,000 shares. This massive exit from a major fund should raise some alarms for any investor considering entering this stock.

Despite the optimism of analysts, institutional behavior suggests caution. As always, it is essential to do your own research before making investment decisions in such a volatile market environment as the current one.