Capital World Investors Invests $1.02 Billion in Ecolab Inc. $ECL

Key Points

• Capital World Investors disclosed a new fourth-quarter stake in Ecolab, buying 3.89 million shares worth about $1.02 billion and owning roughly 1.37% of the company.
• Ecolab reported quarterly EPS of $1.70, in line with estimates, on revenue of $4.07 billion that topped expectations and rose 10% year over year.
• The company also declared a quarterly dividend of $0.73 per share, while analysts generally remain constructive with a consensus rating of Moderate Buy and an average price target of $322.53.

Capital World Investors acquired a new position in Ecolab Inc. (NYSE:ECL - Free Report) in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 3,894,309 shares of the basic materials company's stock, valued at approximately $1,022,334,000. Capital World Investors owned about 1.37% of Ecolab as of its most recent SEC filing.

Other institutional investors also recently modified their holdings of the company. Wexford Capital LP bought a new position in shares of Ecolab in the third quarter valued at approximately $25,000. JPL Wealth Management LLC bought a new position in shares of Ecolab in the third quarter valued at approximately $26,000. Tradewinds Capital Management LLC grew its holdings in shares of Ecolab by 1,375.0% in the fourth quarter. Tradewinds Capital Management LLC now owns 118 shares of the basic materials company's stock valued at $31,000 after acquiring an additional 110 shares in the last quarter. FSA Wealth Management LLC grew its holdings in shares of Ecolab by 88.7% in the third quarter. FSA Wealth Management LLC now owns 117 shares of the basic materials company's stock valued at $32,000 after acquiring an additional 55 shares in the last quarter. Finally, Pekao Towarzystwo Funduszy Inwestycyjnych S.A. bought a new position in shares of Ecolab in the fourth quarter valued at approximately $49,000. 74.91% of the stock is owned by institutional investors.

Ecolab Trading Up 0.2%

Shares of ECL stock opened at $258.60 on Monday. The company has a debt-to-equity ratio of 0.69, a quick ratio of 0.73 and a current ratio of 0.99. Ecolab Inc. has a 52-week low of $243.15 and a 52-week high of $309.27. The company has a market capitalization of $72.78 billion, a PE ratio of 34.99, a price-to-earnings-growth ratio of 2.14 and a beta of 0.90. The business's fifty day moving average is $261.26 and its 200 day moving average is $271.34.

Ecolab (NYSE:ECL - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The basic materials company reported $1.70 earnings per share for the quarter, meeting analysts' consensus estimates of $1.70. Ecolab had a return on equity of 22.64% and a net margin of 12.80%.The business had revenue of $4.07 billion for the quarter, compared to the consensus estimate of $4.03 billion. During the same quarter last year, the business posted $1.50 earnings per share. The company's revenue for the quarter was up 10.0% on a year-over-year basis. Ecolab has set its FY 2026 guidance at 8.430-8.630 EPS and its Q2 2026 guidance at 2.020-2.120 EPS. On average, equities research analysts anticipate that Ecolab Inc. will post 8.47 EPS for the current fiscal year.

Ecolab Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 16th will be paid a dividend of $0.73 per share. This represents a $2.92 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend is Tuesday, June 16th. Ecolab's dividend payout ratio (DPR) is 39.51%.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on ECL shares. Citigroup reduced their target price on Ecolab from $330.00 to $325.00 and set a "buy" rating for the company in a report on Thursday, April 30th. JPMorgan Chase & Co. raised Ecolab from a "neutral" rating to an "overweight" rating and set a $295.00 price objective for the company in a report on Tuesday, March 24th. Berenberg Bank raised Ecolab from a "hold" rating to a "buy" rating and set a $326.00 price objective for the company in a report on Monday, March 16th. Bank of America increased their price objective on Ecolab from $337.00 to $345.00 and gave the company a "buy" rating in a report on Tuesday, April 21st. Finally, BMO Capital Markets increased their price objective on Ecolab from $323.00 to $345.00 and gave the company an "outperform" rating in a report on Friday, February 13th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, Ecolab currently has an average rating of "Moderate Buy" and a consensus target price of $322.53.

Insider Transactions at Ecolab

In other Ecolab news, Director David Maclennan bought 1,000 shares of the business's stock in a transaction that occurred on Wednesday, May 13th. The shares were bought at an average cost of $250.65 per share, with a total value of $250,650.00. Following the completion of the purchase, the director directly owned 25,230 shares of the company's stock, valued at $6,323,899.50. This trade represents a 4.13% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Suzanne M. Vautrinot sold 1,004 shares of the firm's stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $264.98, for a total value of $266,039.92. Following the completion of the sale, the director directly owned 11,651 shares in the company, valued at $3,087,281.98. The trade was a 7.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.50% of the stock is currently owned by company insiders.

Ecolab Company Profile

Ecolab, Inc is a global provider of water, hygiene and infection prevention solutions and services. The company develops and supplies cleaning and sanitizing chemicals, dispensing equipment, water-treatment systems, pest elimination services and related technologies designed to help businesses maintain clean, safe and efficient operations. Its offerings span both products and onsite services, often paired with technical support and training.

Ecolab serves a broad range of end markets including hospitality and foodservice, food and beverage processing, healthcare, manufacturing and industrial operations, and energy and utilities.

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