Applied Industrial Technologies stock sees Bollinger Bands expanding upward, KDJ golden cross formed.

According to the 15-minute chart for Applied Industrial Technologies, the Bollinger Bands have been expanding upward, and the KDJ Golden Cross has occurred on June 18, 2025 at 12:45. This indicates that the market trend is being driven by buyers, and the momentum of the stock price is shifting towards the upside, with potential for further increase.

Applied Industrial Technologies, Inc. (AIT) has shown resilience and strong prospects despite ongoing challenges. The company's performance across key markets, including technology, food & beverage, pulp & paper, aggregates, and transportation, has been robust. The technology-related fluid power end market has driven growth, with revenues in the Engineered Solutions segment increasing by 13.5% year over year in the third quarter of fiscal 2025 [1].

AIT's strategic acquisitions have bolstered its position. The acquisition of IRIS Factory Automation in May 2025 has strengthened its automation offerings, while the acquisition of Hydradyne in January 2025 has expanded its fluid power capabilities and market footprint in the Southeast U.S. Additionally, the acquisition of Grupo Kopar in May 2024 has extended its automation platform into Mexico. These acquisitions have positively impacted AIT's sales, contributing 6.6% in the fiscal third quarter [1].

The company has also been rewarding shareholders through dividends and share buybacks. In the first nine months of fiscal 2025, AIT paid out dividends worth $46.2 million, an 11.2% increase year over year. The company increased its quarterly dividend rate by 24% in January 2025 and authorized a new share buyback program in April 2025 to repurchase up to 1.5 million shares [1].

However, AIT faces headwinds, particularly in its Service Center Based Distribution segment. Reduced MRO spending, lower capital maintenance projects, and prolonged customer plant shutdowns have negatively impacted this segment's performance. Revenues decreased by 3.5% year over year in the fiscal third quarter [1].

Moreover, AIT has been experiencing rising expenses, with SG&A expenses increasing by 4.1% year over year in the third quarter, climbing to 19.4% of total revenues [1].

Despite these challenges, the company's stock has performed well, gaining 20.9% over the past year compared to the industry's 4.2% growth [1]. Additionally, technical indicators suggest further upside potential. According to the 15-minute chart, Bollinger Bands have been expanding upward, and a KDJ Golden Cross occurred on June 18, 2025, at 12:45, indicating a shift in market trend towards buyers [2].

References:
[1] https://www.nasdaq.com/articles/applied-industrial-exhibits-strong-prospects-amid-persisting-headwinds
[2] [Your technical analysis source, if available]