Quaker Houghton (NYSE:KWR) Posts Earnings Results, Beats Expectations By $0.53 EPS

Quaker Houghton (NYSE:KWR) issued its earnings results on Thursday. The specialty chemicals company reported $2.19 earnings per share for the quarter, topping the consensus estimate of $1.66 by $0.53, FiscalAI reports. 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 for the quarter, compared to analyst estimates of $504.63 million. During the same period last year, the company posted $1.71 EPS. The business’s quarterly revenue was up 10.2% on a year-over-year basis.

Quaker Houghton Stock Up 3.8%

NYSE:KWR traded up $5.65 during mid-day trading on Thursday, hitting $154.44. The company had a trading volume of 243,134 shares, compared to its average volume of 127,312. The business has a fifty day simple moving average of $149.41 and a 200-day simple moving average of $145.63. The company has a current ratio of 2.45, a quick ratio of 1.72 and a debt-to-equity ratio of 0.61. Quaker Houghton has a 1 year low of $111.42 and a 1 year high of $183.01. The firm has a market capitalization of $2.68 billion, a price-to-earnings ratio of 551.58, a PEG ratio of 1.14 and a beta of 1.40.

Quaker Houghton Increases Dividend

The firm 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 a positive change from Quaker Houghton’s previous quarterly dividend of $0.51. The ex-dividend date of this dividend is Friday, October 16th. This represents a $2.12 dividend on an annualized basis and a yield of 1.4%. Quaker Houghton’s dividend payout ratio is currently 725.00%.

Quaker Houghton announced that its Board of Directors has initiated 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 repurchase up to 10.1% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s management believes its shares are undervalued.

Wall Street Analyst Weigh In

Several equities research analysts have commented on KWR shares. Jefferies Financial Group dropped their price target on Quaker Houghton from $203.00 to $175.00 and set a “buy” rating for the company in a research note on Monday, April 6th. Weiss Ratings upgraded Quaker Houghton from a “sell (d)” rating to a “sell (d+)” rating in a report on Wednesday, May 6th. Wall Street Zen lowered Quaker Houghton from a “buy” rating to a “hold” rating in a research note on Sunday, April 12th. Zacks Research upgraded Quaker Houghton from a “strong sell” rating to a “hold” rating in a report on Thursday, May 21st. Finally, Royal Bank Of Canada reissued an “outperform” rating and set a $177.00 target price on shares of Quaker Houghton in a research report on Friday, July 17th. Four 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’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $174.67.

Insider Activity at Quaker Houghton

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

Hedge Funds Weigh In On Quaker Houghton

Hedge funds and other institutional investors have recently bought and sold shares of the stock. EverSource Wealth Advisors LLC boosted its holdings in Quaker Houghton by 284.8% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 304 shares of the specialty chemicals company’s stock worth $34,000 after acquiring an additional 225 shares during the period. Global Retirement Partners LLC raised its stake in shares of Quaker Houghton by 556.9% during the fourth quarter. Global Retirement Partners LLC now owns 335 shares of the specialty chemicals company’s stock valued at $46,000 after purchasing an additional 284 shares during the period. Kestra Advisory Services LLC acquired a new position in shares of Quaker Houghton during the fourth quarter worth $52,000. Danske Bank A S acquired a new position in shares of Quaker Houghton during the third quarter worth $66,000. Finally, State of Wyoming purchased a new position in shares of Quaker Houghton in the fourth quarter valued at $66,000. 77.46% of the stock is owned by institutional investors and hedge funds.

About Quaker Houghton

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.