Koppers (NYSE:KOP) Shares Down 23.4% Following Weak Earnings

Koppers Holdings Inc. (NYSE:KOP) shares dropped 23.4% during mid-day trading on Monday following a weaker than expected earnings announcement. The stock traded as low as $28.89 and last traded at $30.3450. Approximately 17,668 shares traded hands during mid-day trading, a decline of 90% from the average daily volume of 183,382 shares. The stock had previously closed at $39.64.

The specialty chemicals company reported $0.77 earnings per share for the quarter, missing analysts’ consensus estimates of $1.37 by ($0.60). Koppers had a negative net margin of 5.03% and a positive return on equity of 14.17%. The firm had revenue of $499.10 million for the quarter, compared to the consensus estimate of $518.60 million. During the same period in the previous year, the business earned $1.21 earnings per share. The firm’s revenue for the quarter was up 2.8% on a year-over-year basis. Koppers has set its FY 2026 guidance at 3.100-3.250 EPS.

Koppers Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 14th. Shareholders of record on Friday, November 27th will be given a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend is Friday, November 27th. Koppers’s dividend payout ratio is presently -7.00%.

Wall Street Analysts Forecast Growth

KOP has been the topic of several recent analyst reports. B. Riley Financial dropped their target price on shares of Koppers from $62.00 to $54.00 and set a “buy” rating on the stock in a research report on Monday. Wall Street Zen lowered Koppers from a “buy” rating to a “hold” rating in a report on Saturday. Finally, Weiss Ratings downgraded Koppers from a “hold (c+)” rating to a “sell (d+)” rating in a research report on Tuesday, August 11th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Koppers has a consensus rating of “Moderate Buy” and an average target price of $54.50.

Insider Activity at Koppers

In related news, SVP Stephen Lucas sold 1,308 shares of the firm’s stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $44.55, for a total transaction of $58,271.40. Following the completion of the sale, the senior vice president owned 34,345 shares in the company, valued at approximately $1,530,069.75. This trade represents a 3.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Leroy Ball sold 4,000 shares of the firm’s stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $45.96, for a total transaction of $183,840.00. Following the sale, the chief executive officer owned 429,555 shares of the company’s stock, valued at $19,742,347.80. This trade represents a 0.92% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 15,808 shares of company stock worth $754,631. 7.28% of the stock is owned by company insiders.

Institutional Investors Weigh In On Koppers

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

Koppers Trading Down 1.1%

The company has a debt-to-equity ratio of 2.19, a current ratio of 2.37 and a quick ratio of 1.01. The firm has a fifty day simple moving average of $44.13 and a two-hundred day simple moving average of $41.68. The firm has a market capitalization of $560.27 million, a P/E ratio of -5.76 and a beta of 1.23.

Koppers Company Profile

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.