Ecolab (NYSE:ECL) Sets New 52-Week High Following Insider Buying Activity

Key Points

• Ecolab Inc. shares reached a new 52-week high at $282.67, driven by insider buying activity from Director David Maclennan, who purchased 600 shares at $278.51 each.
• Analysts have shown confidence in Ecolab, with multiple upgrades, resulting in an average rating of "Moderate Buy" and a target price of $291.21.
• The company recently declared a quarterly dividend of $0.65, with a payout ratio of 34.71% and an annualized yield of 0.9%, set to be paid on October 15th.

Ecolab Inc. (NYSE:ECL - Get Free Report)'s share price hit a new 52-week high on Monday following insider buying activity. The company traded as high as $282.67 and last traded at $282.20, with a volume of 143796 shares. The stock had previously closed at $280.83.

Specifically, Director David Maclennan bought 600 shares of the business's stock in a transaction that occurred on Wednesday, August 13th. The shares were acquired at an average cost of $278.51 per share, with a total value of $167,106.00. Following the transaction, the director owned 20,253 shares of the company's stock, valued at $5,640,663.03. This represents a 3.05% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website.

Analyst Ratings Changes

Several equities analysts have commented on the stock. Oppenheimer raised shares of Ecolab to an "outperform" rating in a research note on Wednesday, July 30th. Seaport Res Ptn upgraded Ecolab from a "hold" rating to a "strong-buy" rating in a report on Monday, April 21st. Stifel Nicolaus dropped their price target on Ecolab from $307.00 to $303.00 and set a "buy" rating on the stock in a research report on Wednesday, April 30th. Robert W. Baird raised Ecolab from a "neutral" rating to an "outperform" rating and lifted their target price for the company from $273.00 to $300.00 in a research note on Wednesday, July 30th. Finally, Citigroup cut their price objective on Ecolab from $320.00 to $315.00 and set a "buy" rating on the stock in a research note on Wednesday, July 30th. Four analysts have rated the stock with a hold rating, twelve have issued a buy rating and three have given a strong buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $291.21.

Ecolab Trading Up 0.5%

The company has a market cap of $80.02 billion, a price-to-earnings ratio of 37.67, a PEG ratio of 2.87 and a beta of 1.06. The company has a quick ratio of 1.12, a current ratio of 1.44 and a debt-to-equity ratio of 0.80. The firm has a 50 day moving average price of $268.43 and a two-hundred day moving average price of $258.81.

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

Ecolab Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Tuesday, September 16th will be issued a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend is Tuesday, September 16th. Ecolab's payout ratio is 34.71%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of ECL. Saudi Central Bank purchased a new position in Ecolab during the 1st quarter valued at about $25,000. Financial Connections Group Inc. purchased a new position in Ecolab in the 2nd quarter valued at about $26,000. J.Safra Asset Management Corp raised its holdings 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 buying an additional 77 shares during the period. Vermillion & White Wealth Management Group LLC lifted its stake in shares of Ecolab by 81.5% during the second quarter. Vermillion & White Wealth Management Group LLC now owns 118 shares of the basic materials company's stock worth $32,000 after purchasing an additional 53 shares in the last quarter. Finally, Dunhill Financial LLC lifted its position in shares of Ecolab by 176.7% during 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 last quarter. 74.91% of the stock is owned by hedge funds and other institutional investors.

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.

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