Ascent Industries Co. (NASDAQ:ACNT) Sees Large Increase in Short Interest

Key Points

• Short interest rose 19.5% in March to 338,424 shares (about 4.0% of the stock) with a short-interest ratio of 2.4 days based on average daily volume.
• The company missed estimates in the latest quarter, reporting EPS of -$0.11 vs. $0.16 expected and revenue of $18.76 million versus a $48.90 million consensus.
• Management showed confidence with insider purchases (CEO bought 7,595 shares at $12.98; VP bought 3,400 at $13.30) and the board approved a $2.00 million share repurchase program (~1.4% of shares); insiders now own 9.31% of the stock.

Ascent Industries Co. (NASDAQ:ACNT - Get Free Report) saw a large growth in short interest during the month of March. As of March 31st, there was short interest totaling 338,424 shares, a growth of 19.5% from the March 15th total of 283,226 shares. Approximately 4.0% of the company's stock are short sold. Based on an average daily volume of 138,633 shares, the short-interest ratio is currently 2.4 days.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Ascent Industries in a research report on Tuesday. One research analyst has rated the stock with a Hold rating, According to MarketBeat.com, the stock currently has an average rating of "Hold".

Ascent Industries Price Performance

Shares of NASDAQ:ACNT opened at $13.92 on Friday. The company has a quick ratio of 6.01, a current ratio of 6.72 and a debt-to-equity ratio of 0.01. Ascent Industries has a fifty-two week low of $11.46 and a fifty-two week high of $17.92. The firm has a 50-day simple moving average of $14.65 and a 200 day simple moving average of $14.54. The company has a market cap of $128.62 million, a PE ratio of 126.56 and a beta of 0.55.

Ascent Industries (NASDAQ:ACNT - Get Free Report) last announced its quarterly earnings data on Tuesday, March 3rd. The company reported ($0.11) earnings per share for the quarter, missing analysts' consensus estimates of $0.16 by ($0.27). Ascent Industries had a net margin of 1.06% and a negative return on equity of 2.89%. The business had revenue of $18.76 million for the quarter, compared to the consensus estimate of $48.90 million.

Ascent Industries declared that its board has approved a stock repurchase program on Thursday, December 18th that permits the company to repurchase $2.00 million in shares. This repurchase authorization permits the company to reacquire up to 1.4% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's management believes its shares are undervalued.

Insider Activity

In other Ascent Industries news, CEO John Bryan Kitchen acquired 7,595 shares of the stock in a transaction that occurred on Tuesday, March 17th. The stock was acquired at an average price of $12.98 per share, with a total value of $98,583.10. Following the transaction, the chief executive officer directly owned 79,985 shares in the company, valued at approximately $1,038,205.30. This represents a 10.49% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP Anthony X. Pan acquired 3,400 shares of the stock in a transaction that occurred on Friday, March 6th. The shares were acquired at an average cost of $13.30 per share, with a total value of $45,220.00. Following the transaction, the vice president owned 20,651 shares in the company, valued at approximately $274,658.30. The trade was a 19.71% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 9.31% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of ACNT. Goldman Sachs Group Inc. bought a new position in Ascent Industries in the 1st quarter worth about $227,000. Empowered Funds LLC grew its position in Ascent Industries by 6.5% in the 1st quarter. Empowered Funds LLC now owns 47,620 shares of the company's stock worth $603,000 after purchasing an additional 2,927 shares during the last quarter. Jane Street Group LLC bought a new position in Ascent Industries in the 1st quarter worth about $269,000. Geode Capital Management LLC grew its position in Ascent Industries by 91.9% in the 2nd quarter. Geode Capital Management LLC now owns 194,433 shares of the company's stock worth $2,452,000 after purchasing an additional 93,125 shares during the last quarter. Finally, JPMorgan Chase & Co. grew its position in Ascent Industries by 121,970.0% in the 2nd quarter. JPMorgan Chase & Co. now owns 12,207 shares of the company's stock worth $154,000 after purchasing an additional 12,197 shares during the last quarter. Institutional investors own 26.05% of the company's stock.

About Ascent Industries

Ascent Industries Co an industrials company, produces and distributes stainless steel pipe and tube and specialty chemicals in the United States and internationally. The company operates through two segments, Tubular Products and Specialty Chemicals. It manufactures welded pipes and tubes, primarily from stainless steel, duplex, and nickel alloys; and ornamental stainless steel tubes for automotive, commercial transportation, marine, food services, construction, furniture, healthcare, and other industries.

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