AdvanSix (NYSE:ASIX) Shares Gap Down Following Weak Earnings

Key Points

• Shares gapped down after AdvanSix reported an EPS loss of ($0.50), missing estimates of ($0.48) by $0.02 while revenue beat at $404.18M versus $364.90M; the stock opened around $21.05 after closing at $23.94.
• The company paid a quarterly dividend of $0.16 (annualized $0.64), implying a 3.0% yield with a dividend payout ratio of 35.36%.
• Analysts have a consensus rating of "Hold" with an average price target of $25.67, institutional investors own 86.39% of shares, and the stock trades at a P/E of 11.61 with a market cap near $571M.

Shares of AdvanSix (NYSE:ASIX - Get Free Report) gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $23.94, but opened at $21.05. AdvanSix shares last traded at $21.0850, with a volume of 151,060 shares traded.

The company reported ($0.50) EPS for the quarter, missing analysts' consensus estimates of ($0.48) by ($0.02). AdvanSix had a return on equity of 6.97% and a net margin of 3.24%.The firm had revenue of $404.18 million during the quarter, compared to the consensus estimate of $364.90 million.

AdvanSix Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, March 23rd. Shareholders of record on Monday, March 9th were given a $0.16 dividend. The ex-dividend date was Monday, March 9th. This represents a $0.64 dividend on an annualized basis and a dividend yield of 3.0%. AdvanSix's dividend payout ratio (DPR) is currently 35.36%.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on ASIX. Wall Street Zen raised AdvanSix from a "hold" rating to a "buy" rating in a report on Saturday, April 11th. Loop Capital set a $25.00 target price on AdvanSix in a report on Thursday, March 12th. Truist Financial increased their target price on AdvanSix from $19.00 to $20.00 and gave the stock a "hold" rating in a report on Monday, February 23rd. Finally, Weiss Ratings raised AdvanSix from a "sell (d+)" rating to a "hold (c-)" rating in a report on Wednesday, April 29th. One analyst has rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat.com, AdvanSix presently has a consensus rating of "Hold" and an average price target of $25.67.

Hedge Funds Weigh In On AdvanSix

A number of hedge funds have recently modified their holdings of ASIX. Dimensional Fund Advisors LP grew its position in AdvanSix by 0.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,311,006 shares of the company's stock worth $31,988,000 after acquiring an additional 8,131 shares during the last quarter. Waterfront Wealth Inc. grew its position in AdvanSix by 36.7% during the 1st quarter. Waterfront Wealth Inc. now owns 91,905 shares of the company's stock worth $2,242,000 after acquiring an additional 24,655 shares during the last quarter. Hsbc Holdings PLC bought a new stake in AdvanSix during the 4th quarter worth approximately $612,000. Mercer Global Advisors Inc. ADV bought a new stake in AdvanSix during the 4th quarter worth approximately $246,000. Finally, Empowered Funds LLC grew its position in AdvanSix by 10.8% during the 4th quarter. Empowered Funds LLC now owns 144,284 shares of the company's stock worth $2,496,000 after acquiring an additional 14,084 shares during the last quarter. 86.39% of the stock is owned by institutional investors and hedge funds.

AdvanSix Stock Performance

The firm has a market capitalization of $570.72 million, a P/E ratio of 11.61 and a beta of 1.33. The stock has a 50-day moving average of $22.28 and a 200 day moving average of $18.96. The company has a debt-to-equity ratio of 0.26, a quick ratio of 0.52 and a current ratio of 1.13.

About AdvanSix

AdvanSix, Inc NYSE: ASIX is an integrated chemical manufacturer specializing in the production of nylon 6 intermediates and related co‐products. Established as a publicly traded spin‐off from Honeywell Specialty Chemicals in June 2016, the company is headquartered in Parsippany, New Jersey.

The company’s principal product is caprolactam, the key building block for nylon 6 resin, used in fibers and engineering plastics across industries. In addition to caprolactam and nylon 6 resin, AdvanSix produces ammonium sulfate fertilizer and industrial chemicals such as phenol and acetone.

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