Capital International Investors Purchases 495,424 Shares of UL Solutions Inc. $ULS

Key Points

• Capital International Investors increased its UL Solutions stake by 6.6% in the fourth quarter, buying 495,424 shares and bringing its total holding to 8.04 million shares worth about $634.6 million.
• UL Solutions posted better-than-expected first-quarter results, with EPS of $0.50 versus $0.42 expected and revenue of $758 million, up 7.5% year over year.
• Wall Street sentiment remains constructive, with analysts assigning a Moderate Buy consensus and an average target price of $101.54, while the company also declared a quarterly dividend of $0.145 per share.

Capital International Investors grew its stake in shares of UL Solutions Inc. (NYSE:ULS - Free Report) by 6.6% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 8,043,735 shares of the company's stock after acquiring an additional 495,424 shares during the quarter. Capital International Investors owned about 4.00% of UL Solutions worth $634,616,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently modified their holdings of ULS. Assetmark Inc. bought a new position in shares of UL Solutions during the third quarter valued at $40,000. Northwestern Mutual Wealth Management Co. increased its holdings 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 acquiring an additional 614 shares in the last quarter. Rhumbline Advisers bought a new position in shares of UL Solutions during the first quarter valued at $49,000. PNC Financial Services Group Inc. increased its holdings in shares of UL Solutions by 18.2% during the third quarter. PNC Financial Services Group Inc. now owns 864 shares of the company's stock valued at $61,000 after acquiring an additional 133 shares in the last quarter. Finally, US Bancorp DE increased its holdings in shares of UL Solutions by 253.9% during the third quarter. US Bancorp DE now owns 1,596 shares of the company's stock valued at $113,000 after acquiring an additional 1,145 shares in the last quarter.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on ULS. Citigroup raised their price target on UL Solutions from $87.80 to $106.40 and gave the company a "neutral" rating in a report on Thursday, May 7th. JPMorgan Chase & Co. raised their price target on UL Solutions from $88.00 to $108.00 and gave the company a "neutral" rating in a report on Thursday, May 7th. Wells Fargo & Company raised their price target on UL Solutions from $102.00 to $120.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Weiss Ratings upgraded UL Solutions from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, May 8th. Finally, The Goldman Sachs Group restated a "neutral" rating on shares of UL Solutions in a report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, UL Solutions currently has an average rating of "Moderate Buy" and a consensus target price of $101.54.

UL Solutions Stock Down 0.0%

ULS opened at $96.80 on Monday. The stock has a market capitalization of $19.51 billion, a price-to-earnings ratio of 56.61, a PEG ratio of 3.77 and a beta of 0.63. The firm has a 50 day moving average price of $93.40 and a 200-day moving average price of $84.38. UL Solutions Inc. has a twelve month low of $61.64 and a twelve month high of $107.54. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 0.27.

UL Solutions (NYSE:ULS - Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported $0.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.42 by $0.08. UL Solutions had a net margin of 11.24% and a return on equity of 30.99%. The company had revenue of $758.00 million for the quarter, compared to analysts' expectations of $748.50 million. During the same quarter last year, the company posted $0.37 earnings per share. The firm's quarterly revenue was up 7.5% on a year-over-year basis. Equities research analysts forecast that UL Solutions Inc. will post 2.1 earnings per share for the current year.

UL Solutions Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, June 8th. Investors of record on Friday, May 29th will be issued a $0.145 dividend. The ex-dividend date is Friday, May 29th. This represents a $0.58 annualized dividend and a yield of 0.6%. UL Solutions's dividend payout ratio (DPR) is currently 33.92%.

Insider Activity at UL Solutions

In related news, insider Gitte Schjotz sold 9,865 shares of the firm's stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $96.98, for a total value of $956,707.70. Following the sale, the insider owned 59,341 shares in the company, valued at approximately $5,754,890.18. This trade represents a 14.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Friedrich Hecker sold 4,000 shares of the firm's stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $102.04, for a total transaction of $408,160.00. Following the completion of the sale, the director owned 13,180 shares in the company, valued at $1,344,887.20. This represents a 23.28% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 64,980 shares of company stock worth $6,217,938. Company insiders own 1.20% of the company's stock.

UL Solutions 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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