Koppers (NYSE:KOP) Stock Falls 23.4% Following Weak Earnings

Shares of Koppers Holdings Inc. (NYSE:KOP) dropped 23.4% on Monday following a dissappointing earnings announcement. The stock traded as low as $28.89 and last traded at $30.3450. Approximately 17,668 shares changed 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 (EPS) 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 company had revenue of $499.10 million for the quarter, compared to analyst estimates of $518.60 million. During the same quarter in the previous year, the firm earned $1.21 EPS. The firm’s revenue 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 business also recently declared a quarterly dividend, which will be paid on Monday, December 14th. Shareholders of record on Friday, November 27th will be paid a $0.09 dividend. This represents a $0.36 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Friday, November 27th. Koppers’s payout ratio is -7.00%.

Wall Street Analysts Forecast Growth

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

Insider Buying and Selling

In related news, insider James Sullivan sold 7,500 shares of the 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 transaction, the insider directly owned 82,898 shares in the company, valued at $4,144,900. This trade represents a 8.30% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP Stephen Lucas sold 1,308 shares of Koppers stock in a transaction on 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 directly owned 34,345 shares of the company’s stock, valued at approximately $1,530,069.75. The trade was a 3.67% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 15,808 shares of company stock worth $754,631 in the last ninety days. Corporate insiders own 7.28% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Assetmark Inc. purchased a new position in shares of Koppers during the second quarter valued at approximately $30,000. Nykredit A S bought a new stake in Koppers during the second quarter worth $31,000. Public Employees Retirement System of Ohio bought a new stake in Koppers during the second quarter worth $50,000. Mirae Asset Global Investments Co. Ltd. bought a new stake in Koppers during the third quarter worth $56,000. Finally, Simplex Trading LLC purchased a new stake in Koppers in the 3rd quarter valued at $90,000. 92.75% of the stock is owned by institutional investors.

Koppers Price Performance

The company has a current ratio of 2.37, a quick ratio of 1.01 and a debt-to-equity ratio of 2.19. The business has a 50-day moving average of $44.13 and a 200 day moving average of $41.68. The firm has a market capitalization of $560.27 million, a PE 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.