Key Stats for IR Stock
- Year-to-Date Performance: 19%
- 52-Week Range: $66 to $101
- Valuation Model Target Price: $109
- Implied Upside: 16%
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What Happened?
Ingersoll Rand stock is up about 19% year to date, recently trading near $94 per share, as investors responded to improving orders momentum, durable margins, and continued acquisition execution entering 2026. Shares have steadily advanced alongside broader strength in high-quality industrial compounders.
The rally has been driven by confidence in earnings durability rather than a sharp cyclical rebound. ITS EBITDA margins remain near 29%, PST margins are above 30%, and recurring revenue has scaled to more than $450 million, with roughly $1.1 billion in contracted revenue already secured. That level of visibility has supported sentiment even without a broad industrial recovery.
Institutional positioning has reflected both accumulation and selective trimming. Waycross Partners initiated a 341,551 share position valued at about $28 million, while Equitable Trust opened a 43,783 share stake worth about $4 million and First National Bank of Omaha acquired 37,419 shares valued near $3 million.
NEOS Investment Management increased its stake by 17% to 132,519 shares. At the same time, Vanguard reduced its position by 4%, selling 1,764,340 shares, and JPMorgan trimmed its stake by 32%, selling 5,757,338 shares.
Insider transactions also drew attention in February. CEO Vicente Reynal sold 36,482 shares at about $98 per share for roughly $4 million, following earlier sales this year, while executives Kathleen Keene, Michael Scheske, and Elizabeth Meloy Hepding reported additional multi-million dollar transactions.
Despite the insider activity, investor sentiment has remained constructive as the company enters 2026 with steady organic orders and a consistent compounding strategy.
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Is IR Undervalued?
Under valuation assumptions, the stock is modeled using:
- Revenue Growth (CAGR): 4.8%
- Operating Margins: 21.3%
- Exit P/E Multiple: 25x
Revenue is projected to expand steadily over the next several years, supported by industrial air systems demand, recurring aftermarket revenue, and continued bolt-on acquisitions across compressors, vacuum technologies, and life sciences applications.
The business operates in mission-critical categories where reliability drives repeat service and replacement demand.
Margin durability near 21% reflects pricing discipline, integration synergies from acquisitions, and increasing mix from higher-margin recurring service contracts.
As recurring revenue continues to scale globally, earnings quality improves and cyclicality becomes more muted.
Balance sheet flexibility remains a core driver. With leverage near 1.9x net debt to EBITDA, the company retains capacity to pursue additional bolt-on acquisitions, a strategy that has historically supported steady earnings per share compounding without relying on aggressive organic acceleration.
Based on these inputs, the model estimates a target price of $109, implying about 16% total upside from current levels.
At roughly $94 per share, Ingersoll Rand appears modestly undervalued, with 2026 performance likely driven by recurring revenue expansion, incremental margin improvement, and disciplined capital allocation rather than a broad industrial recovery.
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How Much Upside Does Ingersoll Rand Stock Have From Here?
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All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
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