Ecolab Inc. (NYSE:ECL) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts remain broadly bullish: Ecolab has a consensus “Moderate Buy” rating, with 17 buys, three holds and one strong buy among 21 analysts. The average 12-month price target is approximately $327.56.
• Quarterly results exceeded expectations: Ecolab reported $2.09 in EPS versus the $2.08 consensus estimate and $4.42 billion in revenue, up 9.7% year over year. The company guided for third-quarter EPS of $2.13–$2.23.
• Ecolab declared a quarterly dividend of $0.73, equivalent to $2.92 annually and a 1.1% yield. Institutional investors own 74.91% of the company, while CEO Christophe Beck recently sold 17,862 shares.

Shares of Ecolab Inc. (NYSE:ECL - Get Free Report) have earned a consensus rating of "Moderate Buy" from the twenty-one ratings firms that are currently covering the firm, Marketbeat.com reports. Three investment analysts have rated the stock with a hold rating, seventeen have given a buy rating and one has given a strong buy rating to the company. The average 1-year target price among brokers that have updated their coverage on the stock in the last year is $327.5556.

A number of equities research analysts recently issued reports on the company. UBS Group reiterated a "buy" rating and issued a $342.00 price objective on shares of Ecolab in a research report on Wednesday, July 29th. BMO Capital Markets upped their price target on shares of Ecolab from $345.00 to $360.00 and gave the company an "outperform" rating in a research report on Wednesday, July 29th. Oppenheimer upgraded shares of Ecolab from a "market perform" rating to an "outperform" rating and set a $320.00 target price on the stock in a report on Friday, July 17th. Weiss Ratings raised Ecolab from a "buy (b-)" rating to a "buy (b)" rating in a research note on Monday, August 31st. Finally, Robert W. Baird set a $305.00 target price on Ecolab in a research note on Wednesday, July 29th.

Insiders Place Their Bets

In other Ecolab news, CEO Christophe Beck sold 17,862 shares of the firm's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $280.14, for a total transaction of $5,003,860.68. Following the completion of the sale, the chief executive officer directly owned 72,932 shares in the company, valued at approximately $20,431,170.48. This trade represents a 19.67% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.50% of the company's stock.

Hedge Funds Weigh In On Ecolab

A number of hedge funds have recently added to or reduced their stakes in ECL. California State Teachers Retirement System raised its stake in shares of Ecolab by 26,161.1% in the second quarter. California State Teachers Retirement System now owns 129,279,498 shares of the basic materials company's stock worth $36,018,561,000 after purchasing an additional 128,787,212 shares during the last quarter. BlackRock Inc. bought a new position in shares of Ecolab in the 2nd quarter worth approximately $6,422,340,000. Corient Private Wealth LP purchased a new position in shares of Ecolab during the 2nd quarter worth $244,381,000. JPMorgan Chase & Co. lifted its position in Ecolab by 63.1% during the fourth quarter. JPMorgan Chase & Co. now owns 10,622,035 shares of the basic materials company's stock valued at $2,788,497,000 after purchasing an additional 4,110,472 shares in the last quarter. Finally, Capital World Investors purchased a new position in shares of Ecolab during the 4th quarter valued at about $1,022,334,000. 74.91% of the stock is currently owned by hedge funds and other institutional investors.

Ecolab Stock Performance

NYSE ECL opened at $276.32 on Friday. Ecolab has a 12-month low of $243.15 and a 12-month high of $309.27. The company's 50 day moving average is $278.37 and its 200-day moving average is $272.26. The company has a quick ratio of 1.57, a current ratio of 1.84 and a debt-to-equity ratio of 1.18. The firm has a market cap of $77.46 billion, a P/E ratio of 37.09, a price-to-earnings-growth ratio of 2.63 and a beta of 0.88.

Ecolab (NYSE:ECL - Get Free Report) last posted its earnings results on Tuesday, July 28th. The basic materials company reported $2.09 earnings per share for the quarter, beating analysts' consensus estimates of $2.08 by $0.01. The business had revenue of $4.42 billion during the quarter, compared to analyst estimates of $4.38 billion. Ecolab had a return on equity of 22.72% and a net margin of 12.57%.The company's quarterly revenue was up 9.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.89 EPS. Ecolab has set its Q3 2026 guidance at 2.130-2.230 EPS. Sell-side analysts predict that Ecolab will post 8.17 earnings per share for the current year.

Ecolab Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Tuesday, September 15th will be paid a $0.73 dividend. The ex-dividend date is Tuesday, September 15th. This represents a $2.92 dividend on an annualized basis and a yield of 1.1%. Ecolab's payout ratio is presently 39.19%.

Ecolab Company Profile

Ecolab Inc NYSE: ECL provides water, hygiene, infection prevention and technology solutions to businesses and institutions worldwide. Its customers include restaurants, hotels, hospitals, manufacturers, food and beverage companies, retailers and other organizations that rely on safe, efficient and sustainable operating environments.

The company's offerings include cleaning and sanitizing products, water-treatment and process-management systems, food-safety programs, infection-prevention solutions and pest-elimination services.

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