Heartland Advisors Inc. Increases Position in Quaker Houghton $KWR

Key Points

• Heartland Advisors Inc. boosted its stake in Quaker Houghton by 37.3% in the fourth quarter, adding 33,695 shares and bringing its total holding to 124,078 shares worth about $17.0 million.
• Quaker Houghton reported better-than-expected revenue in its latest quarterly results, though EPS slightly missed estimates. The company posted $480.5 million in revenue, up 8.5% year over year, versus EPS of $1.63 compared with the $1.66 consensus.
• The board approved a $250 million stock buyback authorization, while the company also declared a quarterly dividend of $0.508 per share, implying an annualized yield of about 1.5%.

Heartland Advisors Inc. lifted its holdings in Quaker Houghton (NYSE:KWR - Free Report) by 37.3% during the fourth quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 124,078 shares of the specialty chemicals company's stock after buying an additional 33,695 shares during the period. Quaker Houghton makes up approximately 0.9% of Heartland Advisors Inc.'s portfolio, making the stock its 23rd biggest holding. Heartland Advisors Inc. owned 0.72% of Quaker Houghton worth $17,037,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Royce & Associates LP lifted its stake in Quaker Houghton by 19.2% in the fourth quarter. Royce & Associates LP now owns 755,740 shares of the specialty chemicals company's stock valued at $103,771,000 after purchasing an additional 121,854 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in Quaker Houghton by 6.5% in the third quarter. Dimensional Fund Advisors LP now owns 675,738 shares of the specialty chemicals company's stock valued at $89,028,000 after purchasing an additional 41,530 shares during the last quarter. Wellington Management Group LLP lifted its stake in Quaker Houghton by 79.9% in the third quarter. Wellington Management Group LLP now owns 661,888 shares of the specialty chemicals company's stock valued at $87,204,000 after purchasing an additional 293,977 shares during the last quarter. State Street Corp lifted its stake in Quaker Houghton by 9.2% in the second quarter. State Street Corp now owns 596,618 shares of the specialty chemicals company's stock valued at $66,785,000 after purchasing an additional 50,264 shares during the last quarter. Finally, William Blair Investment Management LLC lifted its stake in Quaker Houghton by 33.6% in the fourth quarter. William Blair Investment Management LLC now owns 469,981 shares of the specialty chemicals company's stock valued at $64,533,000 after purchasing an additional 118,321 shares during the last quarter. Hedge funds and other institutional investors own 77.46% of the company's stock.

Quaker Houghton Stock Performance

NYSE KWR opened at $137.04 on Thursday. The company has a 50-day simple moving average of $137.13 and a two-hundred day simple moving average of $142.62. The company has a quick ratio of 1.72, a current ratio of 2.45 and a debt-to-equity ratio of 0.61. Quaker Houghton has a 12-month low of $111.32 and a 12-month high of $183.01. The firm has a market cap of $2.38 billion, a price-to-earnings ratio of 489.46, a PEG ratio of 1.09 and a beta of 1.43.

Quaker Houghton (NYSE:KWR - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The specialty chemicals company reported $1.63 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.66 by ($0.03). Quaker Houghton had a net margin of 0.22% and a return on equity of 9.03%. The business had revenue of $480.48 million for the quarter, compared to analysts' expectations of $463.70 million. During the same quarter in the previous year, the company earned $1.58 earnings per share. The business's quarterly revenue was up 8.5% on a year-over-year basis. On average, equities analysts forecast that Quaker Houghton will post 7.16 EPS for the current year.

Quaker Houghton announced that its board has initiated a stock repurchase plan on Wednesday, May 13th that allows the company to buyback $250.00 million in shares. This buyback authorization allows the specialty chemicals company to repurchase up to 10.1% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's leadership believes its stock is undervalued.

Quaker Houghton Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Friday, July 17th will be given a dividend of $0.508 per share. This represents a $2.03 annualized dividend and a yield of 1.5%. The ex-dividend date is Friday, July 17th. Quaker Houghton's dividend payout ratio is presently 725.00%.

Insider Transactions at Quaker Houghton

In other Quaker Houghton news, EVP Jeewat Bijlani sold 731 shares of the company's stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $145.77, for a total transaction of $106,557.87. Following the completion of the sale, the executive vice president directly owned 6,748 shares in the company, valued at $983,655.96. This represents a 9.77% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 1.00% of the stock is currently owned by insiders.

Analyst Ratings Changes

A number of equities research analysts have issued reports on KWR shares. Seaport Research Partners raised shares of Quaker Houghton from a "neutral" rating to a "buy" rating and set a $175.00 target price on the stock in a report on Friday, April 17th. Wall Street Zen cut shares of Quaker Houghton from a "buy" rating to a "hold" rating in a report on Sunday, April 12th. Truist Financial started coverage on shares of Quaker Houghton in a report on Monday. They set a "buy" rating and a $172.00 target price on the stock. Royal Bank Of Canada boosted their target price on shares of Quaker Houghton from $151.00 to $157.00 and gave the company an "outperform" rating in a report on Monday, May 4th. Finally, Zacks Research raised shares of Quaker Houghton from a "strong sell" rating to a "hold" rating in a report on Thursday, May 21st. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Quaker Houghton has an average rating of "Moderate Buy" and an average price target of $168.00.

About Quaker Houghton

Quaker Houghton is a global provider of process fluids, chemical specialties and sustainable solutions for industrial applications. The company develops and supplies metalworking fluids, coatings, and corrosion inhibitors, as well as heat transfer, lubrication and additive products designed to improve productivity and extend equipment life. Its portfolio addresses a range of end markets including automotive, aerospace, defense, energy, mining, agriculture and heavy industry.

The company traces its roots back to the founding of Quaker Chemical Corporation in 1918 and Houghton International in 1865.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.