Ecolab Target of Unusually High Options Trading (NYSE:ECL)

Ecolab Inc. (NYSE:ECL) saw some unusual options trading activity on Wednesday. Stock traders purchased 2,926 call options on the stock. This is an increase of 241% compared to the typical volume of 858 call options.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on ECL. Mizuho upped their target price on Ecolab from $325.00 to $327.00 and gave the stock an “outperform” rating in a report on Wednesday, July 29th. Citigroup lifted their price objective on Ecolab from $325.00 to $330.00 and gave the company a “buy” rating in a report on Wednesday, June 24th. UBS Group reaffirmed a “buy” rating and issued a $342.00 price objective on shares of Ecolab in a research note on Wednesday, July 29th. Zacks Research upgraded shares of Ecolab from a “strong sell” rating to a “hold” rating in a report on Monday. Finally, Jefferies Financial Group cut their target price on shares of Ecolab from $352.00 to $345.00 and set a “buy” rating on the stock in a research report on Wednesday, May 20th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, Ecolab currently has a consensus rating of “Moderate Buy” and an average target price of $327.56.

Ecolab Stock Down 1.3%

Ecolab stock traded down $3.59 during midday trading on Wednesday, reaching $274.52. The company’s stock had a trading volume of 159,153 shares, compared to its average volume of 1,472,618. The stock has a market capitalization of $76.95 billion, a P/E ratio of 36.84, a PEG ratio of 2.71 and a beta of 0.88. The company has a debt-to-equity ratio of 1.18, a current ratio of 1.84 and a quick ratio of 1.57. The stock’s 50-day simple moving average is $278.85 and its 200-day simple moving average is $272.66. Ecolab has a 52-week low of $243.15 and a 52-week high of $309.27.

Ecolab (NYSE:ECL) last issued its quarterly earnings results on Tuesday, July 28th. The basic materials company reported $2.09 earnings per share for the quarter, topping the consensus estimate of $2.08 by $0.01. The company had revenue of $4.42 billion for the quarter, compared to the consensus estimate of $4.38 billion. Ecolab had a net margin of 12.57% and a return on equity of 22.72%. Ecolab’s quarterly revenue was up 9.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.89 EPS. Ecolab has set its Q3 2026 guidance at 2.130-2.230 EPS. On average, sell-side analysts expect that Ecolab will post 8.17 EPS for the current year.

Ecolab Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Tuesday, September 15th will be issued a $0.73 dividend. The ex-dividend date is Tuesday, September 15th. This represents a $2.92 dividend on an annualized basis and a yield of 1.1%. Ecolab’s dividend payout ratio (DPR) is presently 39.19%.

Insider Transactions at Ecolab

In related news, EVP Benjamin Clark bought 1,000 shares of the company’s stock in a transaction on Thursday, June 11th. The shares were acquired at an average cost of $263.83 per share, for a total transaction of $263,830.00. Following the purchase, the executive vice president directly owned 1,083 shares of the company’s stock, valued at approximately $285,727.89. The trade was a 1,204.82% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Christophe Beck sold 17,862 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $280.14, for a total transaction of $5,003,860.68. Following the transaction, the chief executive officer directly owned 72,932 shares in the company, valued at approximately $20,431,170.48. This trade represents a 19.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Ecolab

A number of institutional investors have recently bought and sold shares of the company. Erste Asset Management GmbH lifted its holdings in Ecolab by 2.2% in the fourth quarter. Erste Asset Management GmbH now owns 163,731 shares of the basic materials company’s stock valued at $43,464,000 after acquiring an additional 3,500 shares during the last quarter. Findlay Park Partners LLP acquired a new position in shares of Ecolab in the 2nd quarter valued at $115,674,000. Cornerstone Advisors LLC acquired a new stake in shares of Ecolab during the 2nd quarter worth about $16,698,000. North Dakota State Investment Board acquired a new stake in shares of Ecolab during the 4th quarter worth about $2,245,000. Finally, Geode Capital Management LLC raised its holdings in Ecolab by 0.8% in the 4th quarter. Geode Capital Management LLC now owns 5,635,339 shares of the basic materials company’s stock valued at $1,472,599,000 after buying an additional 46,569 shares during the period. 74.91% of the stock is owned by hedge funds and other institutional investors.

About Ecolab

Ecolab Inc (NYSE:ECL) provides water, hygiene, infection prevention and technology solutions to businesses and institutions worldwide. Its customers include restaurants, hotels, hospitals, manufacturers, food and beverage companies, retailers and other organizations that rely on safe, efficient and sustainable operating environments.

The company’s offerings include cleaning and sanitizing products, water-treatment and process-management systems, food-safety programs, infection-prevention solutions and pest-elimination services.