Element Solutions Inc. (NYSE: ESI) achieved a new 52-week high on Thursday, reaching $29.76 per share following a price target increase from Truist Financial. The investment firm raised its target from $30.00 to $33.00 and maintained a “buy” rating on the stock. Trading activity saw a significant volume of 158,699 shares, with the stock closing at $29.73, up from a previous close of $29.26.
Several other analysts have recently provided insights on Element Solutions. Bank of America upgraded its target price from $29.00 to $31.00 and also issued a “buy” rating. Similarly, BMO Capital Markets changed its stance from “strong-buy” to “hold.” In contrast, UBS Group raised its price target from $33.00 to $34.00, maintaining a “buy” rating, while KeyCorp revised its price objective from $32.00 to $34.00 with an “overweight” rating. CJS Securities also upgraded the stock to a “strong-buy” rating. As it stands, two analysts have rated the stock as a strong buy, six have given it a buy rating, and three have opted for a hold rating. According to MarketBeat.com, the consensus rating for Element Solutions is “Moderate Buy,” with an average target price of $31.25.
Insider Transactions and Institutional Holdings
In related news, Director Ian G. H. Ashken sold 292,000 shares on November 5 at an average price of $27.00, totaling approximately $7.88 million. Post-sale, Ashken holds 306,880 shares, valued at around $8.29 million. This sale reflects a 48.76% decrease in his holding. Another insider, Matthew Liebowitz, sold 37,000 shares on December 12, with an average sale price of $26.60, amounting to $984,200. Following this transaction, Liebowitz owns 117,393 shares, valued at approximately $3.12 million, marking a 23.96% reduction in his position. Currently, insiders own 6.90% of the company’s stock.
Institutional investors have also been active with their holdings. Elevation Point Wealth Partners LLC initiated a new position valued at around $26,000 in the second quarter. Farther Finance Advisors LLC increased its stake by 154.8% during the third quarter, now holding 1,116 shares worth $28,000. First Horizon Advisors Inc. saw a substantial increase of 710.1% in its position, owning 1,288 shares valued at $29,000. Other institutional investors, such as Community Bank N.A. and American National Bank & Trust, also acquired new positions valued at $33,000 and $36,000, respectively. Overall, institutional investors and hedge funds own 92.32% of Element Solutions.
Financial Performance and Future Outlook
Despite a recent dip of 1.0% in stock price, Element Solutions has maintained a strong financial position. The company reports a current ratio of 4.05, a quick ratio of 3.28, and a debt-to-equity ratio of 0.61. The fifty-day and two-hundred-day simple moving averages stand at $26.39 and $25.78, respectively. With a market capitalization of $7.01 billion, Element Solutions has a price-to-earnings (P/E) ratio of 29.27 and a price-to-earnings-growth (PEG) ratio of 1.24.
On October 28, the company reported earnings of $0.41 per share, exceeding analyst expectations of $0.39 by $0.02. Revenue for the quarter was recorded at $656.10 million, surpassing predictions of $645.13 million. The company demonstrated a net margin of 9.58% and a return on equity of 14.01%, with a year-over-year revenue increase of 1.7% compared to the same quarter last year.
Element Solutions has announced a quarterly dividend of $0.08 per share, paid on December 15. Shareholders on record as of December 1 received a total annualized dividend of $0.32, reflecting a yield of 1.1%. The company’s dividend payout ratio currently stands at 32.32%.
As a global specialty chemicals company, Element Solutions develops and supplies engineered chemistries for performance-driven markets, including electronics, energy, transportation, and consumer sectors. Its products are crucial in manufacturing printed circuit boards, semiconductor devices, and advanced display technologies.
