Capital Research Global Investors Cuts Stock Position in UL Solutions Inc. $ULS

Key Points

• Capital Research Global Investors trimmed its UL Solutions stake by 2.8% in the fourth quarter, selling 108,510 shares and ending with 3.83 million shares valued at about $302.4 million.
• UL Solutions posted solid quarterly results, reporting EPS of $0.50 versus $0.42 expected and revenue of $758 million, up 7.5% from a year earlier.
• The company declared a quarterly dividend and drew mixed but generally positive analyst sentiment, with a $0.145 per-share payout and an average Wall Street rating of “Moderate Buy” with a $101.54 price target.

Capital Research Global Investors lessened its stake in UL Solutions Inc. (NYSE:ULS - Free Report) by 2.8% in the 4th quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 3,834,395 shares of the company's stock after selling 108,510 shares during the quarter. Capital Research Global Investors owned approximately 1.91% of UL Solutions worth $302,380,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Assetmark Inc. purchased a new stake in UL Solutions in the 3rd quarter worth $40,000. Northwestern Mutual Wealth Management Co. increased its holdings in UL Solutions by 3,070.0% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 634 shares of the company's stock worth $46,000 after acquiring an additional 614 shares in the last quarter. PNC Financial Services Group Inc. increased its holdings in UL Solutions by 18.2% in the 3rd quarter. PNC Financial Services Group Inc. now owns 864 shares of the company's stock worth $61,000 after acquiring an additional 133 shares in the last quarter. Rhumbline Advisers purchased a new stake in UL Solutions in the 1st quarter worth $49,000. Finally, US Bancorp DE grew 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 worth $113,000 after buying an additional 1,145 shares in the last quarter.

UL Solutions Price Performance

UL Solutions stock opened at $96.80 on Monday. UL Solutions Inc. has a 52-week low of $61.64 and a 52-week high of $107.54. The firm 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 company has a fifty day simple moving average of $93.40 and a 200-day simple moving average of $84.38. 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 announced its quarterly earnings results on Tuesday, May 5th. The company reported $0.50 earnings per share for the quarter, beating the consensus estimate of $0.42 by $0.08. The firm had revenue of $758.00 million for the quarter, compared to analysts' expectations of $748.50 million. UL Solutions had a net margin of 11.24% and a return on equity of 30.99%. The company's revenue was up 7.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.37 EPS. On average, equities analysts anticipate that UL Solutions Inc. will post 2.1 EPS for the current fiscal year.

UL Solutions Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, June 8th. Stockholders of record on Friday, May 29th will be given a dividend of $0.145 per share. The ex-dividend date of this dividend is Friday, May 29th. This represents a $0.58 annualized dividend and a dividend yield of 0.6%. UL Solutions's payout ratio is presently 33.92%.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on ULS shares. UBS Group upped their target price on shares of UL Solutions from $90.00 to $110.00 and gave the stock a "neutral" rating in a report on Wednesday, May 6th. BNP Paribas Exane started coverage on shares of UL Solutions in a report on Monday, April 20th. They set a "neutral" rating and a $95.00 target price for the company. Telsey Advisory Group set a $100.00 target price on shares of UL Solutions in a report on Wednesday, May 6th. Wells Fargo & Company upped their target price on shares of UL Solutions from $102.00 to $120.00 and gave the stock an "overweight" rating in a report on Wednesday, May 6th. Finally, Bank of America upped their target price on shares of UL Solutions to $86.00 and gave the stock a "buy" rating in a report on Tuesday, February 17th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $101.54.

Insider Activity

In other news, insider Gitte Schjotz sold 12,015 shares of the business's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $99.71, for a total transaction of $1,198,015.65. Following the transaction, the insider owned 69,206 shares of the company's stock, valued at approximately $6,900,530.26. The trade was a 14.79% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Alberto Uggetti sold 6,100 shares of the business's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $100.00, for a total transaction of $610,000.00. Following the transaction, the executive vice president directly owned 10,307 shares in the company, valued at approximately $1,030,700. The trade was a 37.18% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 64,980 shares of company stock worth $6,217,938. 1.20% of the stock is owned by insiders.

About UL Solutions

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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