Ashland (NYSE:ASH) Releases Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• Ashland reported quarterly EPS of $1.02, beating analysts’ consensus estimate by $0.04. The company posted a negative net margin of 39.03% and an 8.06% return on equity.
• Ashland shares rose 2.1% to $67.79 following the results, while the company increased its quarterly dividend to $0.42 per share, equivalent to a 2.5% annualized yield.
• Analyst sentiment remains positive, with seven Buy ratings and a consensus “Moderate Buy” rating; the average price target is $65.20.

Ashland (NYSE:ASH - Get Free Report) released its quarterly earnings data on Tuesday. The basic materials company reported $1.02 earnings per share for the quarter, topping the consensus estimate of $0.98 by $0.04, Zacks reports. Ashland had a negative net margin of 39.03% and a positive return on equity of 8.06%.

Ashland Stock Up 2.1%

ASH traded up $1.41 during trading on Tuesday, reaching $67.79. The company had a trading volume of 1,272,676 shares, compared to its average volume of 831,470. The company has a debt-to-equity ratio of 0.74, a current ratio of 3.06 and a quick ratio of 1.78. Ashland has a 12 month low of $46.29 and a 12 month high of $72.25. The business's fifty day moving average price is $63.38 and its 200 day moving average price is $59.87. The company has a market cap of $3.10 billion, a P/E ratio of -4.40, a PEG ratio of 2.14 and a beta of 0.41.

Ashland Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 1st were issued a dividend of $0.42 per share. This is an increase from Ashland's previous quarterly dividend of $0.41. The ex-dividend date was Monday, June 1st. This represents a $1.68 annualized dividend and a yield of 2.5%. Ashland's dividend payout ratio is -10.89%.

Wall Street Analyst Weigh In

Several equities research analysts have commented on ASH shares. Wolfe Research reaffirmed an "outperform" rating on shares of Ashland in a research note on Monday. Seaport Research Partners raised shares of Ashland from a "neutral" rating to a "buy" rating and set a $75.00 price target on the stock in a research report on Wednesday, May 6th. Zacks Research raised shares of Ashland from a "strong sell" rating to a "hold" rating in a report on Thursday, July 16th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $60.00 price objective on shares of Ashland in a research report on Friday, May 1st. Finally, JPMorgan Chase & Co. raised their price objective on Ashland from $65.00 to $75.00 and gave the stock an "overweight" rating in a research note on Friday, July 10th. Seven analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Ashland currently has a consensus rating of "Moderate Buy" and a consensus target price of $65.20.

Institutional Investors Weigh In On Ashland

Large investors have recently made changes to their positions in the stock. Royal Bank of Canada lifted its position in Ashland by 18.7% in the 1st quarter. Royal Bank of Canada now owns 46,306 shares of the basic materials company's stock valued at $2,747,000 after acquiring an additional 7,309 shares in the last quarter. Integrated Wealth Concepts LLC boosted its stake in Ashland by 6.3% in the 1st quarter. Integrated Wealth Concepts LLC now owns 3,815 shares of the basic materials company's stock worth $226,000 after purchasing an additional 225 shares during the period. Millennium Management LLC increased its holdings in Ashland by 49.4% during the 1st quarter. Millennium Management LLC now owns 284,454 shares of the basic materials company's stock worth $16,865,000 after purchasing an additional 94,067 shares in the last quarter. Goldman Sachs Group Inc. increased its holdings in Ashland by 1.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 387,132 shares of the basic materials company's stock worth $22,953,000 after purchasing an additional 6,245 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Ashland by 10.1% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 152,830 shares of the basic materials company's stock valued at $9,061,000 after purchasing an additional 13,989 shares during the period. Institutional investors own 93.95% of the company's stock.

About Ashland

Ashland Inc is a global specialty chemicals company that develops, manufactures and supplies a broad range of performance and process-critical additives, ingredients and technologies. Its portfolio spans performance additives for coatings, adhesives and sealants; specialty ingredients for personal care and pharmaceutical applications; and process aids used in water treatment and other industrial processes. Ashland aims to address customer challenges by delivering tailored solutions that improve product performance, processing efficiency and sustainability outcomes.

Founded in 1924 as the Ashland Oil & Refining Company, the firm gradually expanded into the specialty chemicals sector over the second half of the 20th century.

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