Ecolab (NYSE:ECL) Hits New 12-Month High - Here's Why

Key Points

• Ecolab Inc. achieved a new 52-week high with its stock trading at $274.69, indicating strong market performance alongside a market capitalization of $77.14 billion.
• Recent analyst reports reflect an optimistic outlook, with price targets raised by firms like Mizuho to $305.00 and Baird R W upgrading their rating to "strong-buy."
• The company announced a quarterly dividend of $0.65 per share, which translates to an annualized yield of 1.0%, set to be paid on October 15th.

Shares of Ecolab Inc. (NYSE:ECL - Get Free Report) hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $274.69 and last traded at $273.28, with a volume of 16931 shares changing hands. The stock had previously closed at $273.50.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on the company. Baird R W upgraded Ecolab from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, July 30th. Wells Fargo & Company set a $260.00 target price on shares of Ecolab and gave the company an "equal weight" rating in a report on Tuesday, May 20th. Oppenheimer upgraded shares of Ecolab to an "outperform" rating in a report on Wednesday, July 30th. Mizuho boosted their price objective on shares of Ecolab from $285.00 to $305.00 and gave the company an "outperform" rating in a research report on Tuesday, July 15th. Finally, Robert W. Baird raised shares of Ecolab from a "neutral" rating to an "outperform" rating and upped their price target for the stock from $273.00 to $300.00 in a research note on Wednesday, July 30th. Four research analysts have rated the stock with a hold rating, twelve have issued a buy rating and three have issued a strong buy rating to the company's stock. According to MarketBeat, Ecolab presently has a consensus rating of "Moderate Buy" and a consensus price target of $291.21.

Ecolab Stock Up 0.3%

The business has a fifty day moving average of $268.43 and a two-hundred day moving average of $258.68. The company has a market cap of $79.65 billion, a price-to-earnings ratio of 37.50, a PEG ratio of 2.86 and a beta of 1.06. The company has a current ratio of 1.44, a quick ratio of 1.12 and a debt-to-equity ratio of 0.80.

Ecolab (NYSE:ECL - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The basic materials company reported $1.89 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.90 by ($0.01). Ecolab had a net margin of 13.59% and a return on equity of 22.52%. The company had revenue of $4.03 billion during the quarter, compared to analyst estimates of $4.03 billion. As a group, equities analysts anticipate that Ecolab Inc. will post 7.54 EPS for the current fiscal year.

Ecolab Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Tuesday, September 16th will be paid a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Tuesday, September 16th. Ecolab's dividend payout ratio is currently 34.71%.

Insiders Place Their Bets

In related news, Director David Maclennan purchased 600 shares of the stock in a transaction that occurred on Wednesday, August 13th. The stock was purchased at an average cost of $278.51 per share, for a total transaction of $167,106.00. Following the acquisition, the director owned 20,253 shares in the company, valued at approximately $5,640,663.03. This trade represents a 3.05% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Jennifer J. Bradway sold 807 shares of the stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $279.28, for a total transaction of $225,378.96. Following the transaction, the senior vice president directly owned 4,326 shares in the company, valued at $1,208,165.28. The trade was a 15.72% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 0.04% of the company's stock.

Hedge Funds Weigh In On Ecolab

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Saudi Central Bank bought a new position in Ecolab in the 1st quarter worth $25,000. Financial Connections Group Inc. bought a new stake in shares of Ecolab during the second quarter worth approximately $26,000. Dunhill Financial LLC raised its holdings in Ecolab by 176.7% in the first quarter. Dunhill Financial LLC now owns 119 shares of the basic materials company's stock worth $30,000 after purchasing an additional 76 shares during the period. Navigoe LLC bought a new position in Ecolab in the fourth quarter valued at $31,000. Finally, J.Safra Asset Management Corp lifted its stake in Ecolab by 202.6% in the second quarter. J.Safra Asset Management Corp now owns 115 shares of the basic materials company's stock valued at $31,000 after acquiring an additional 77 shares during the last quarter. Institutional investors and hedge funds own 74.91% of the company's stock.

About Ecolab

Ecolab Inc provides water, hygiene, and infection prevention solutions and services in the United States and internationally. The company operates through three segments: Global Industrial; Global Institutional & Specialty; and Global Healthcare & Life Sciences. The Global Industrial segment offers water treatment and process applications, and cleaning and sanitizing solutions to manufacturing, food and beverage processing, transportation, chemical, metals and mining, power generation, pulp and paper, commercial laundry, petroleum, refining, and petrochemical industries.