Koppers (NYSE:KOP) Shares Gap Down on Disappointing Earnings

Koppers Holdings Inc. (NYSE:KOP) shares gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $39.64, but opened at $29.47. Koppers shares last traded at $32.0350, with a volume of 39,030 shares changing hands.

The specialty chemicals company reported $0.77 EPS for the quarter, missing the consensus estimate of $1.37 by ($0.60). The business had revenue of $499.10 million for the quarter, compared to analysts’ expectations of $518.60 million. Koppers had a positive return on equity of 14.98% and a negative net margin of 4.59%. The company’s revenue was up 2.8% compared to the same quarter last year. During the same period last year, the business posted $1.21 earnings per share.

Koppers Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, December 14th. Investors of record on Friday, November 27th will be issued a dividend of $0.09 per share. The ex-dividend date of this dividend is Friday, November 27th. This represents a $0.36 annualized dividend and a dividend yield of 1.1%. Koppers’s dividend payout ratio (DPR) is currently -7.63%.

Wall Street Analyst Weigh In

Several analysts have weighed in on KOP shares. Weiss Ratings downgraded shares of Koppers from a “hold (c+)” rating to a “sell (d+)” rating in a research note on Tuesday, August 11th. Wall Street Zen lowered shares of Koppers from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 15th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $55.00.

Insiders Place Their Bets

In related news, insider James Sullivan sold 7,500 shares of the firm’s stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $50.00, for a total value of $375,000.00. Following the completion of the sale, the insider owned 82,898 shares of the company’s stock, valued at $4,144,900. This trade represents a 8.30% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Leroy Ball sold 4,000 shares of Koppers stock in a transaction on Monday, August 31st. The shares were sold at an average price of $45.96, for a total transaction of $183,840.00. Following the completion of the sale, the chief executive officer owned 429,555 shares in the company, valued at approximately $19,742,347.80. This trade represents a 0.92% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 17,808 shares of company stock worth $856,651. Insiders own 7.28% of the company’s stock.

Institutional Investors Weigh In On Koppers

Large investors have recently modified their holdings of the stock. Simplex Trading LLC purchased a new stake in Koppers in the third quarter worth about $90,000. Allspring Global Investments Holdings LLC grew its holdings in shares of Koppers by 4.2% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 14,738 shares of the specialty chemicals company’s stock worth $666,000 after acquiring an additional 600 shares during the period. Mirae Asset Global Investments Co. Ltd. bought a new position in shares of Koppers in the 3rd quarter worth approximately $56,000. VIRGINIA RETIREMENT SYSTEMS ET Al raised its position in shares of Koppers by 7.1% in the 3rd quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 10,600 shares of the specialty chemicals company’s stock worth $483,000 after acquiring an additional 700 shares in the last quarter. Finally, Sterling Capital Management LLC raised its position in shares of Koppers by 1,711.4% in the 3rd quarter. Sterling Capital Management LLC now owns 6,666 shares of the specialty chemicals company’s stock worth $304,000 after acquiring an additional 6,298 shares in the last quarter. Institutional investors own 92.75% of the company’s stock.

Koppers Trading Down 19.7%

The company has a market cap of $602.02 million, a PE ratio of -6.74 and a beta of 1.23. The company has a current ratio of 2.33, a quick ratio of 1.01 and a debt-to-equity ratio of 2.31. The stock has a 50 day moving average price of $44.46 and a 200 day moving average price of $41.68.

About Koppers

Koppers Holdings Inc (NYSE:KOP) is a global provider of treated wood products, carbon compounds and performance chemicals. The company serves infrastructure, industrial and utility markets with products designed to preserve, protect and extend the service life of wood and other materials.

Koppers operates through two primary business areas: Railroad and Utility Products and Services, and Performance Chemicals. Its offerings include treated railroad crossties, utility poles, pilings and other wood products, as well as wood preservatives and related treatment services.