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

Quaker Houghton (NYSE:KWR)’s share price shot 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. 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 (EPS) for the quarter, beating the consensus estimate of $1.66 by $0.53. Quaker Houghton had a return on equity of 9.03% and a net margin of 0.22%.The business had revenue of $532.55 million during the quarter, compared to analysts’ expectations of $504.63 million. During the same quarter in the previous year, the firm posted $1.71 EPS. The company’s revenue for the quarter was up 10.2% on a year-over-year basis.

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 given a dividend of $0.53 per share. This is an increase from Quaker Houghton’s previous quarterly dividend of $0.51. This represents a $2.12 annualized dividend and a yield of 1.3%. The ex-dividend date is Friday, October 16th. Quaker Houghton’s dividend payout ratio (DPR) is 725.00%.

Quaker Houghton declared that its Board of Directors has initiated a share buyback 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 purchase up to 10.1% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s management believes its stock is undervalued.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on KWR shares. Truist Financial started coverage on shares of 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 upgraded shares of Quaker Houghton from a “neutral” rating to a “buy” rating and set a $175.00 target price for the company in a research note on Friday, April 17th. Weiss Ratings raised shares of Quaker Houghton from a “sell (d)” rating to a “sell (d+)” rating in a report on Wednesday, May 6th. Zacks Research upgraded shares of Quaker Houghton from a “strong sell” rating to a “hold” rating in a research report on Thursday, May 21st. Finally, Jefferies Financial Group cut their price objective on shares of Quaker Houghton from $203.00 to $175.00 and set a “buy” rating for the company in a report on Monday, April 6th. Four equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $174.67.

Insider Transactions at Quaker Houghton

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

Institutional Trading of Quaker Houghton

A number of institutional investors have recently made changes to their positions in KWR. Wellington Management Group LLP raised its stake in Quaker Houghton by 79.9% in the 3rd quarter. Wellington Management Group LLP now owns 661,888 shares of the specialty chemicals company’s stock valued at $87,204,000 after purchasing an additional 293,977 shares during the last quarter. Global Alpha Capital Management Ltd. acquired a new stake in Quaker Houghton during the 4th quarter worth $21,132,000. Norges Bank purchased a new stake in shares of Quaker Houghton during the fourth quarter worth $17,982,000. MetLife Investment Management LLC grew its holdings in shares of Quaker Houghton by 1,569.5% during the fourth quarter. MetLife Investment Management LLC now owns 139,290 shares of the specialty chemicals company’s stock worth $19,126,000 after buying an additional 130,947 shares in the last quarter. Finally, Royce & Associates LP raised its position in shares of Quaker Houghton by 19.2% in the fourth quarter. Royce & Associates LP now owns 755,740 shares of the specialty chemicals company’s stock valued at $103,771,000 after buying an additional 121,854 shares during the last quarter. 77.46% of the stock is owned by institutional investors and hedge funds.

Quaker Houghton Trading Up 5.8%

The company’s 50 day moving average price is $149.41 and its two-hundred day moving average price is $145.63. The company has a debt-to-equity ratio of 0.61, a current ratio of 2.45 and a quick ratio of 1.72. The stock has a market capitalization of $2.85 billion, a PE ratio of 576.91, a P/E/G ratio of 1.14 and a beta of 1.40.

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.