Quaker Houghton (NYSE:KWR) Given Average Recommendation of "Buy" by Brokerages

Key Points

• Analysts are broadly bullish: Quaker Houghton has a consensus “Buy” rating from six brokerages, with an average 12-month price target of $187, above its reported opening price of $161.48.
• Quarterly results exceeded expectations: The company reported earnings of $2.19 per share versus the $1.66 estimate, while revenue rose 10.2% year over year to $532.55 million.
• Shareholder returns are increasing: Quaker Houghton authorized a $250 million share-repurchase program and raised its quarterly dividend to $0.53 per share, equivalent to a 1.3% annualized yield.

Quaker Houghton (NYSE:KWR - Get Free Report) has earned a consensus recommendation of "Buy" from the six brokerages that are covering the stock, Marketbeat reports. One research analyst has rated the stock with a hold recommendation, four have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 1-year target price among analysts that have covered the stock in the last year is $187.00.

A number of research firms recently weighed in on KWR. Deutsche Bank Aktiengesellschaft raised their target price on shares of Quaker Houghton from $165.00 to $185.00 and gave the company a "buy" rating in a research report on Tuesday, August 25th. Truist Financial restated a "buy" rating and set a $190.00 price objective (up from $172.00) on shares of Quaker Houghton in a research note on Monday, August 3rd. Zacks Research upgraded Quaker Houghton from a "hold" rating to a "strong-buy" rating in a report on Thursday, August 6th. Wall Street Zen raised Quaker Houghton from a "hold" rating to a "buy" rating in a research report on Saturday, August 1st. Finally, Weiss Ratings upgraded Quaker Houghton from a "sell (d+)" rating to a "hold (c)" rating in a report on Monday, August 3rd.

Quaker Houghton Stock Performance

KWR opened at $161.48 on Wednesday. The business's 50-day moving average price is $159.62 and its two-hundred day moving average price is $146.73. Quaker Houghton has a 1 year low of $112.18 and a 1 year high of $183.01. The company has a market capitalization of $2.78 billion, a price-to-earnings ratio of 28.78, a P/E/G ratio of 1.12 and a beta of 1.40. The company has a debt-to-equity ratio of 0.62, a current ratio of 2.46 and a quick ratio of 1.70.

Quaker Houghton (NYSE:KWR - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The specialty chemicals company reported $2.19 earnings per share for the quarter, topping the consensus estimate of $1.66 by $0.53. The company had revenue of $532.55 million during the quarter, compared to analysts' expectations of $504.63 million. Quaker Houghton had a return on equity of 9.55% and a net margin of 4.94%.Quaker Houghton's revenue for the quarter was up 10.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.71 earnings per share. Equities analysts expect that Quaker Houghton will post 7.85 EPS for the current fiscal year.

Quaker Houghton announced that its Board of Directors has initiated a share repurchase program on Wednesday, May 13th that authorizes the company to buyback $250.00 million in outstanding shares. This buyback authorization authorizes the specialty chemicals company to reacquire up to 10.1% of its stock through open market purchases. Stock buyback programs are often an indication that the company's leadership believes its stock is undervalued.

Quaker Houghton Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Shareholders 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 annualized dividend and a dividend yield of 1.3%. Quaker Houghton's payout ratio is presently 36.19%.

Insider Activity

In other news, Director William H. Osborne sold 600 shares of the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $168.31, for a total value of $100,986.00. Following the completion of the sale, the director owned 616 shares of the company's stock, valued at approximately $103,678.96. This represents a 49.34% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 1.00% of the stock is currently owned by corporate insiders.

Institutional Trading of Quaker Houghton

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. AQR Capital Management LLC increased its stake in shares of Quaker Houghton by 114.3% during the 1st quarter. AQR Capital Management LLC now owns 23,139 shares of the specialty chemicals company's stock worth $2,860,000 after purchasing an additional 12,341 shares during the last quarter. Integrated Wealth Concepts LLC lifted its stake in Quaker Houghton by 7.1% in the 1st quarter. Integrated Wealth Concepts LLC now owns 1,650 shares of the specialty chemicals company's stock valued at $204,000 after purchasing an additional 109 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Quaker Houghton by 4.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,211 shares of the specialty chemicals company's stock worth $1,015,000 after purchasing an additional 345 shares during the period. Goldman Sachs Group Inc. grew its holdings in Quaker Houghton by 29.2% during the first quarter. Goldman Sachs Group Inc. now owns 95,751 shares of the specialty chemicals company's stock worth $11,836,000 after purchasing an additional 21,665 shares during the period. Finally, Intech Investment Management LLC increased its position in Quaker Houghton by 44.4% during the first quarter. Intech Investment Management LLC now owns 9,873 shares of the specialty chemicals company's stock worth $1,220,000 after buying an additional 3,034 shares during the last quarter. 77.46% of the stock is owned by institutional investors.

Quaker Houghton Company Profile

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.

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