Capital International Investors Buys 738,720 Shares of UL Solutions Inc. $ULS

Key Points

• Capital International Investors increased its stake in UL Solutions by 10.8%, buying 738,720 shares to hold 7,548,311 shares (~3.76%) valued at about $534.74 million at quarter end.
• UL Solutions beat quarterly estimates with $0.53 EPS versus $0.46 expected and reported $789 million in revenue, up 6.8% year-over-year.
• The company raised its quarterly dividend to $0.145 (annualized $0.58, ~0.7% yield), while analysts maintain a consensus Hold rating with an average target of $87.60; UL Solutions has a market cap of $16.42 billion and a P/E of 51.38.

Capital International Investors increased its stake in UL Solutions Inc. (NYSE:ULS - Free Report) by 10.8% in the 3rd quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 7,548,311 shares of the company's stock after purchasing an additional 738,720 shares during the quarter. Capital International Investors owned about 3.76% of UL Solutions worth $534,738,000 at the end of the most recent quarter.

A number of other institutional investors have also added to or reduced their stakes in the stock. Parkside Financial Bank & Trust boosted its stake in UL Solutions by 48.4% in the 2nd quarter. Parkside Financial Bank & Trust now owns 524 shares of the company's stock worth $38,000 after purchasing an additional 171 shares during the period. Assetmark Inc. bought a new stake in shares of UL Solutions during the third quarter valued at about $40,000. Northwestern Mutual Wealth Management Co. increased its position in shares of UL Solutions by 3,070.0% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 634 shares of the company's stock valued at $46,000 after buying an additional 614 shares during the period. Rhumbline Advisers purchased a new stake in shares of UL Solutions in the first quarter worth about $49,000. Finally, PNC Financial Services Group Inc. boosted its position in shares of UL Solutions by 28.2% in the second quarter. PNC Financial Services Group Inc. now owns 731 shares of the company's stock valued at $53,000 after acquiring an additional 161 shares during the period.

UL Solutions Trading Down 1.0%

Shares of ULS opened at $81.69 on Wednesday. UL Solutions Inc. has a 1-year low of $49.34 and a 1-year high of $91.95. The company has a market capitalization of $16.42 billion, a P/E ratio of 51.38, a P/E/G ratio of 3.39 and a beta of 0.87. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.32 and a quick ratio of 1.32. The firm's 50 day simple moving average is $76.84 and its 200 day simple moving average is $76.45.

UL Solutions (NYSE:ULS - Get Free Report) last released its quarterly earnings results on Thursday, February 19th. The company reported $0.53 EPS for the quarter, topping analysts' consensus estimates of $0.46 by $0.07. The business had revenue of $789.00 million during the quarter, compared to analysts' expectations of $782.37 million. UL Solutions had a net margin of 10.61% and a return on equity of 31.62%. The business's quarterly revenue was up 6.8% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.49 EPS. Sell-side analysts forecast that UL Solutions Inc. will post 1.69 earnings per share for the current fiscal year.

UL Solutions Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 12th. Investors of record on Monday, March 2nd will be paid a $0.145 dividend. This is a boost from UL Solutions's previous quarterly dividend of $0.13. This represents a $0.58 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Monday, March 2nd. UL Solutions's payout ratio is currently 36.48%.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on ULS shares. Wells Fargo & Company boosted their price objective on shares of UL Solutions from $97.00 to $102.00 and gave the company an "overweight" rating in a research note on Friday, February 20th. Citigroup lowered their target price on shares of UL Solutions from $88.10 to $87.80 and set a "neutral" rating on the stock in a research note on Tuesday, February 24th. Robert W. Baird cut their price target on shares of UL Solutions from $97.00 to $96.00 and set an "outperform" rating for the company in a report on Friday, February 20th. Zacks Research cut shares of UL Solutions from a "strong-buy" rating to a "hold" rating in a report on Thursday, January 29th. Finally, The Goldman Sachs Group reiterated a "neutral" rating on shares of UL Solutions in a research report on Friday, February 20th. Four analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $87.60.

UL Solutions Company Profile

UL Solutions NYSE: ULS is a global safety science company that provides testing, inspection, certification, advisory and digital solutions designed to help organizations manage risk, ensure regulatory compliance and drive innovation. With roots dating back to 1894 when it was founded as Underwriters' Electrical Bureau, the company rebranded as UL Solutions following its initial public offering in 2022. Headquartered in Northbrook, Illinois, UL Solutions operates independently to serve a broad range of industries with an emphasis on product safety, performance and sustainability.

The company's core services include standards development, product testing and certification for sectors such as building products, consumer electronics, automotive, life sciences, energy and industrial equipment.

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