Element Solutions Inc. (NYSE: ESI) reached a new 52-week high on October 26, 2023, following an upgrade from Truist Financial, which raised its price target from $30.00 to $33.00. The stock peaked at $29.76 before closing at $29.73, with a trading volume of 158,699 shares. This shift comes after the stock had closed at $29.26 the previous day.
Analysts have shown a positive outlook for Element Solutions. Following Truist’s upgrade, Bank of America increased its target price from $29.00 to $31.00, maintaining a buy rating. In contrast, BMO Capital Markets adjusted its rating from “strong-buy” to “hold.” UBS Group also raised its price target from $33.00 to $34.00 while keeping a buy rating. KeyCorp lifted its price objective from $32.00 to $34.00, labeling the stock as “overweight.” CJS Securities upgraded the stock to a “strong-buy” rating, further highlighting the mixed yet generally optimistic sentiment among analysts.
Currently, two analysts have given Element Solutions a “strong-buy” rating, six have issued a “buy” rating, and three have assigned a “hold” rating. According to data from MarketBeat.com, the company enjoys a consensus rating of “Moderate Buy” with an average target price of $31.25.
Insider Activity Raises Eyebrows
In related news, Director Ian G. H. Ashken sold 292,000 shares of Element Solutions on November 5, 2023, at an average price of $27.00, totaling approximately $7.88 million. Following this transaction, Ashken holds 306,880 shares valued at around $8.29 million, reflecting a 48.76% decrease in his stake. Another insider, Matthew Liebowitz, sold 37,000 shares on December 12, 2023, at an average price of $26.60, amounting to $984,200. Post-sale, Liebowitz owns 117,393 shares valued at about $3.12 million, indicating a 23.96% reduction in his holdings. Currently, insiders own 6.90% of the company’s stock.
Institutional Investments on the Rise
Institutional investors have also been active in modifying their stakes in Element Solutions. Elevation Point Wealth Partners LLC established a new position in the second quarter, valued at around $26,000. Farther Finance Advisors LLC significantly increased its holdings by 154.8% in the third quarter, now owning 1,116 shares worth $28,000 after acquiring an additional 678 shares. First Horizon Advisors Inc. reported a staggering 710.1% increase in its position during the second quarter, bringing its total to 1,288 shares valued at $29,000. Community Bank N.A. and American National Bank & Trust also acquired new stakes in the company during the last quarter, valued at $33,000 and $36,000, respectively. Overall, hedge funds and institutional investors own approximately 92.32% of Element Solutions.
As of the latest report, Element Solutions’ current ratio stands at 4.05, while the quick ratio is 3.28. The company’s debt-to-equity ratio is 0.61, indicating a relatively low level of debt compared to equity. Element Solutions has a market capitalization of $7.01 billion, a price-to-earnings (P/E) ratio of 29.27, and a price-to-earnings-growth (PEG) ratio of 1.24. The stock has a beta of 1.28, reflecting its volatility compared to the market.
Element Solutions reported its earnings results on October 28, 2023, revealing an earnings per share (EPS) of $0.41, surpassing analysts’ expectations of $0.39. The company generated revenue of $656.10 million during the quarter, exceeding the forecast of $645.13 million. The net margin for the business stood at 9.58%, with a return on equity of 14.01%. Year-over-year, quarterly revenue increased by 1.7%, compared to the same period last year when the EPS was reported at $0.39. Analysts predict that Element Solutions will report an EPS of 1.45 for the current fiscal year.
In addition to its stock performance, Element Solutions announced a quarterly dividend of $0.08 per share, paid on December 15, 2023, to investors of record as of December 1, 2023. This translates to an annualized dividend of $0.32, yielding 1.1%. The company’s current dividend payout ratio is 32.32%.
Element Solutions Inc. is a global specialty chemicals company that focuses on developing and supplying engineered chemistries for performance-driven markets. The company’s offerings serve various sectors, including electronics, energy, transportation, and industrial applications, with a significant emphasis on electronics chemicals and metal plating.
