Price target for Aida Engineering (TYO:6118) reduced by 10.89% to 918.00

The average annual price target for Aida Engineering has been revised downward, now standing at 918.00 per share. This represents a fall of 10.89% compared to the previous estimate of 1,030.20 from November 26, 2023.

This target represents the average of several projections provided by analysts. The latest targets range from a minimum of 909.00 to a maximum of 945.00 per share. Despite the reduction, the current target price still represents an increase of 9.42% over the last reported closing price of 839.00.

Is this a warning sign? I wonder if analysts are losing confidence in the company or simply adjusting their expectations to a more sober reality.

Aida Engineering maintains a dividend yield of 3.58%

At the current price, the company's dividend yield is 3.58%. Additionally, its dividend payout ratio is 0.92, which means they are distributing almost all of their earnings.

Personally, I am concerned about this high payout ratio. When a company distributes more than 90% of its earnings, it leaves little room for investment in growth. Companies with good prospects typically retain some of their profits to invest in future opportunities, resulting in ratios between 0 and 0.5.

To make matters worse, the company has not increased its dividend in the last three years. This combination of factors could indicate underlying problems in its business model.

Fund Sentiment

There has been a slight increase in the number of institutional owners, with a 2.13% rise in the last quarter. The average portfolio weight dedicated to Aida Engineering is 0.06%, with an increase of 21.83%. However, the total shares held by institutions decreased by 3.64% to 5,743,000 shares.

Among the main shareholders is T. Rowe Price International Discovery Fund, which holds 2,074,000 shares, representing 3.47% ownership. This fund reduced its position by 5.98%, although it increased its portfolio allocation by 8.82%.

Other notable shareholders include Vanguard Total International Stock Index Fund (722.000 shares, 1.21%), iShares Core MSCI EAFE ETF (451.000 shares, 0.75%) and Vanguard Developed Markets Index Fund (432.000 shares, 0.72%).

Seeing these institutional movements, I find it hard not to think that the big players are cautiously repositioning themselves. They reduce actions but increase the percentage allocation, perhaps anticipating a complicated environment for the company.