Clearbridge Investments LLC Reduces Position in Ecolab Inc. $ECL

Key Points

• Clearbridge Investments cut its Ecolab stake by 4.1% in the fourth quarter, selling 25,006 shares and ending with 588,877 shares worth about $154.6 million.
• Analyst sentiment remains generally positive: Ecolab has a Moderate Buy consensus rating with a $322.53 average price target, even as some firms adjusted their targets up or down.
• Ecolab reported solid quarterly results, with earnings per share meeting estimates at $1.70 and revenue topping forecasts at $4.07 billion; the company also declared a quarterly dividend of $0.73 per share.

Clearbridge Investments LLC decreased its holdings in shares of Ecolab Inc. (NYSE:ECL - Free Report) by 4.1% in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 588,877 shares of the basic materials company's stock after selling 25,006 shares during the quarter. Clearbridge Investments LLC owned about 0.21% of Ecolab worth $154,592,000 as of its most recent SEC filing.

A number of other hedge funds have also recently modified their holdings of ECL. Capital World Investors purchased a new stake in shares of Ecolab in the fourth quarter valued at about $1,022,334,000. Norges Bank purchased a new stake in shares of Ecolab in the fourth quarter valued at about $880,506,000. Vanguard Group Inc. grew its holdings in shares of Ecolab by 2.1% in the third quarter. Vanguard Group Inc. now owns 25,190,115 shares of the basic materials company's stock valued at $6,898,565,000 after purchasing an additional 527,902 shares during the period. Balyasny Asset Management L.P. grew its holdings in shares of Ecolab by 195.9% in the third quarter. Balyasny Asset Management L.P. now owns 670,778 shares of the basic materials company's stock valued at $183,699,000 after purchasing an additional 444,053 shares during the period. Finally, PFA Pension Forsikringsaktieselskab purchased a new stake in shares of Ecolab in the fourth quarter valued at about $113,287,000. Hedge funds and other institutional investors own 74.91% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on the stock. Citigroup dropped their price objective on shares of Ecolab from $330.00 to $325.00 and set a "buy" rating for the company in a report on Thursday, April 30th. Bank of America upped their price objective on shares of Ecolab from $337.00 to $345.00 and gave the company a "buy" rating in a report on Tuesday, April 21st. UBS Group raised shares of Ecolab from a "neutral" rating to a "buy" rating and upped their price objective for the company from $293.00 to $325.00 in a report on Wednesday, May 27th. Wells Fargo & Company dropped their price objective on shares of Ecolab from $285.00 to $260.00 and set an "equal weight" rating for the company in a report on Tuesday, May 19th. Finally, JPMorgan Chase & Co. raised shares of Ecolab from a "neutral" rating to an "overweight" rating and set a $295.00 target price for the company in a research note on Tuesday, March 24th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $322.53.

Insider Activity

In other news, Director Suzanne M. Vautrinot sold 1,004 shares of the stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $264.98, for a total transaction of $266,039.92. Following the sale, the director owned 11,651 shares of the company's stock, valued at approximately $3,087,281.98. This represents a 7.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director David Maclennan purchased 1,000 shares of Ecolab stock in a transaction dated Wednesday, May 13th. The shares were acquired at an average cost of $250.65 per share, for a total transaction of $250,650.00. Following the transaction, the director directly owned 25,230 shares of the company's stock, valued at approximately $6,323,899.50. This represents a 4.13% increase in their position. The disclosure for this purchase is available in the SEC filing. 0.50% of the stock is currently owned by corporate insiders.

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 current ratio of 0.99 and a quick ratio of 0.73. The firm has a market cap 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 company has a 50-day moving average of $261.26 and a two-hundred day moving average of $271.34. Ecolab Inc. has a 1-year low of $243.15 and a 1-year high of $309.27.

Ecolab (NYSE:ECL - Get Free Report) last announced its earnings results on Tuesday, April 28th. The basic materials company reported $1.70 earnings per share for the quarter, hitting the consensus estimate of $1.70. The company had revenue of $4.07 billion during the quarter, compared to analyst estimates of $4.03 billion. Ecolab had a net margin of 12.80% and a return on equity of 22.64%. Ecolab's revenue was up 10.0% compared to the same quarter last year. During the same quarter last year, the firm posted $1.50 earnings per share. 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, analysts predict that Ecolab Inc. will post 8.47 EPS for the current year.

Ecolab Dividend Announcement

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

About Ecolab

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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