Quaker Houghton (NYSE:KWR) Shares Up 5.8% on Better-Than-Expected Earnings

Shares of Quaker Houghton (NYSE:KWR) were up 5.8% during mid-day trading on Friday following a stronger than expected earnings report. The stock traded as high as $167.64 and last traded at $163.8550. Approximately 74,794 shares were traded during mid-day trading, a decline of 54% from the average session volume of 161,789 shares. The stock had previously closed at $154.92.

The specialty chemicals company reported $2.19 earnings per share for the quarter, topping analysts’ consensus estimates of $1.66 by $0.53. The business had revenue of $532.55 million for the quarter, compared to analyst estimates of $504.63 million. Quaker Houghton had a net margin of 0.22% and a return on equity of 9.03%. The business’s revenue was up 10.2% on a year-over-year basis. During the same period last year, the company posted $1.71 EPS.

Quaker Houghton Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Friday, October 16th will be issued a $0.53 dividend. This is a boost from Quaker Houghton’s previous quarterly dividend of $0.51. This represents a $2.12 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend is Friday, October 16th. Quaker Houghton’s payout ratio is 725.00%.

Quaker Houghton announced that its board has approved a stock repurchase plan on Wednesday, May 13th that authorizes the company to repurchase $250.00 million in shares. This repurchase authorization authorizes the specialty chemicals company to reacquire up to 10.1% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on KWR. Truist Financial initiated coverage on Quaker Houghton in a research note on Monday, June 8th. They set a “buy” rating and a $172.00 price objective on the stock. Seaport Research Partners raised shares of Quaker Houghton from a “neutral” rating to a “buy” rating and set a $175.00 price target on the stock in a research report on Friday, April 17th. Zacks Research raised shares of Quaker Houghton from a “strong sell” rating to a “hold” rating in a report on Thursday, May 21st. Wall Street Zen cut shares of Quaker Houghton from a “buy” rating to a “hold” rating in a research report on Sunday, April 12th. Finally, Jefferies Financial Group reduced their target price on shares of Quaker Houghton from $203.00 to $175.00 and set a “buy” rating on the stock in a research note on Monday, April 6th. Four equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Quaker Houghton presently has a consensus rating of “Moderate Buy” and an average price target of $174.67.

Insiders Place Their Bets

In related news, EVP Jeewat Bijlani sold 731 shares of the company’s stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $145.77, for a total transaction of $106,557.87. Following the sale, the executive vice president directly owned 6,748 shares of the company’s stock, valued at $983,655.96. This represents a 9.77% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 1.00% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Quaker Houghton

Institutional investors have recently modified their holdings of the business. Contravisory Investment Management Inc. purchased a new stake in shares of Quaker Houghton during the second quarter worth $307,000. Bank of America Corp DE grew its stake in Quaker Houghton by 25.4% during the 1st quarter. Bank of America Corp DE now owns 224,030 shares of the specialty chemicals company’s stock worth $27,831,000 after purchasing an additional 45,339 shares in the last quarter. Janus Henderson Group PLC grew its stake in Quaker Houghton by 1.7% during the 1st quarter. Janus Henderson Group PLC now owns 199,349 shares of the specialty chemicals company’s stock worth $24,766,000 after purchasing an additional 3,354 shares in the last quarter. Amundi increased its holdings in Quaker Houghton by 50.0% during the 1st quarter. Amundi now owns 2,650 shares of the specialty chemicals company’s stock worth $329,000 after purchasing an additional 883 shares during the period. Finally, EverSource Wealth Advisors LLC raised its position in Quaker Houghton by 51.5% in the 1st quarter. EverSource Wealth Advisors LLC now owns 344 shares of the specialty chemicals company’s stock valued at $43,000 after purchasing an additional 117 shares in the last quarter. Institutional investors and hedge funds own 77.46% of the company’s stock.

Quaker Houghton Stock Up 5.8%

The firm has a market cap of $2.85 billion, a PE ratio of 576.91, a PEG ratio of 1.14 and a beta of 1.40. The company has a current ratio of 2.45, a quick ratio of 1.72 and a debt-to-equity ratio of 0.61. The firm has a 50 day moving average price of $149.41 and a 200-day moving average price of $145.63.

Quaker Houghton Company Profile

Quaker Houghton is a global provider of process fluids, chemical specialties and sustainable solutions for industrial applications. The company develops and supplies metalworking fluids, coatings, and corrosion inhibitors, as well as heat transfer, lubrication and additive products designed to improve productivity and extend equipment life. Its portfolio addresses a range of end markets including automotive, aerospace, defense, energy, mining, agriculture and heavy industry.

The company traces its roots back to the founding of Quaker Chemical Corporation in 1918 and Houghton International in 1865.