Element Solutions Inc. $ESI Position Increased by Iridian Asset Management LLC CT

Key Points

• Iridian Asset Management increased its Element Solutions position by 21.3% in the third quarter to 224,053 shares, valued at approximately $8.1 million. Institutional investors and hedge funds collectively own 92.32% of the stock.
• Element Solutions exceeded third-quarter expectations, reporting adjusted EPS of $0.50 versus $0.48 expected and revenue of $995.3 million versus $964.2 million forecast. Revenue rose 51.7% year over year, driven in part by a 68% increase in Electronics sales.
• The outlook remains mixed despite strong results. Analysts maintain a consensus “Buy” rating and $46.36 target price, but concerns about chemical-industry demand, input-cost pressures and valuation remain; Mizuho raised its target to $44 while keeping a Neutral rating.

Iridian Asset Management LLC CT increased its position in Element Solutions Inc. (NYSE:ESI - Free Report) by 21.3% during the third quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 224,053 shares of the company's stock after purchasing an additional 39,351 shares during the quarter. Element Solutions makes up 2.9% of Iridian Asset Management LLC CT's holdings, making the stock its 10th largest position. Iridian Asset Management LLC CT owned about 0.09% of Element Solutions worth $8,129,000 at the end of the most recent reporting period.

Several other hedge funds have also bought and sold shares of the company. Assetmark Inc. lifted its position in Element Solutions by 151.0% during the first quarter. Assetmark Inc. now owns 778 shares of the company's stock worth $27,000 after acquiring an additional 468 shares during the last quarter. Integrated Wealth Concepts LLC bought a new stake in shares of Element Solutions during the second quarter worth approximately $27,000. NewEdge Advisors LLC boosted its holdings in shares of Element Solutions by 57.4% during the first quarter. NewEdge Advisors LLC now owns 949 shares of the company's stock worth $32,000 after acquiring an additional 346 shares during the period. Fortitude Family Office LLC grew its position in shares of Element Solutions by 373.1% in the third quarter. Fortitude Family Office LLC now owns 932 shares of the company's stock valued at $34,000 after purchasing an additional 735 shares during the last quarter. Finally, Root Financial Partners LLC acquired a new position in shares of Element Solutions in the third quarter valued at approximately $54,000. 92.32% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Element Solutions

Here are the key news stories impacting Element Solutions this week:

• Positive Sentiment: Q3 results exceeded expectations. Element Solutions reported adjusted earnings of $0.50 per share versus the $0.48 consensus estimate, while revenue reached $995.3 million, ahead of the $964.2 million forecast. EPS increased from $0.41 a year earlier and revenue rose 51.7% year over year. Element Solutions Reports Third-Quarter Results
• Positive Sentiment: Electronics remained a major growth driver. Reports highlighted a 68% increase in Electronics sales, helping produce record quarterly results and reinforcing the company’s exposure to stronger end markets. Element Solutions Q3 Earnings
• Positive Sentiment: Mizuho raised its price target. Mizuho increased its target from $42 to $44, implying substantial potential upside from recent trading levels, although it retained a Neutral rating. Mizuho Analyst Ratings
• Neutral Sentiment: Analysts continue to debate the valuation. Post-earnings coverage describes ESI as potentially undervalued, but the Neutral rating and the stock’s elevated earnings multiple indicate that investors may require additional evidence of sustained growth before assigning a higher valuation. Element Solutions After Q3 Results
• Negative Sentiment: Strong results did not fully resolve forward concerns. Coverage points to weak broader chemical demand, margin pressure from higher input costs and the need for continued cost reductions and expansion initiatives. These concerns appear to be outweighing the earnings and revenue beats in the near term. Chemical Specialty Stocks Industry Outlook

Element Solutions Stock Up 0.1%

Shares of ESI opened at $33.15 on Friday. Element Solutions Inc. has a one year low of $22.86 and a one year high of $49.25. The company has a market cap of $8.08 billion, a P/E ratio of 39.00, a P/E/G ratio of 1.23 and a beta of 1.26. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.78 and a quick ratio of 2.11. The firm has a 50 day simple moving average of $35.42 and a two-hundred day simple moving average of $38.87.

Element Solutions (NYSE:ESI - Get Free Report) last released its earnings results on Wednesday, October 21st. The company reported $0.50 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.48 by $0.02. The firm had revenue of $995.30 million for the quarter, compared to analysts' expectations of $964.23 million. Element Solutions had a return on equity of 15.45% and a net margin of 5.87%. The business's revenue for the quarter was up 51.7% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.41 earnings per share. Research analysts forecast that Element Solutions Inc. will post 1.85 EPS for the current fiscal year.

Element Solutions Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st were given a $0.08 dividend. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date was Tuesday, September 1st. Element Solutions's payout ratio is 37.65%.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on ESI shares. Bank of America started coverage on Element Solutions in a research note on Tuesday, September 1st. They issued a "buy" rating and a $42.00 price target for the company. William Blair set a $48.00 price objective on Element Solutions in a report on Friday, August 28th. Freedom Capital upgraded Element Solutions from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 28th. UBS Group lifted their target price on Element Solutions from $47.00 to $48.00 and gave the stock a "buy" rating in a report on Monday, October 5th. Finally, Mizuho lifted their target price on Element Solutions from $42.00 to $44.00 and gave the stock a "neutral" rating in a report on Thursday. Three research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat, Element Solutions currently has an average rating of "Buy" and a consensus target price of $46.36.

Element Solutions Profile

Element Solutions Inc NYSE: ESI is a specialty chemicals company that develops and produces materials used in electronics manufacturing and a range of industrial applications. Its products are designed to support processes such as printed circuit board fabrication, semiconductor packaging, electronic assembly, metal finishing, and surface treatment.

Through its electronics-focused businesses, including MacDermid Alpha Solutions, the company supplies solder materials, electronic assembly chemicals, circuit board materials, and semiconductor packaging solutions.

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