Jupiter Topco LLC Purchases New Stake in Quaker Houghton $KWR

Key Points

• Jupiter Topco LLC acquired 198,095 shares of Quaker Houghton, valued at approximately $31.5 million and representing a 1.15% stake. Institutional investors collectively own 77.46% of the company.
• Quaker Houghton exceeded quarterly earnings and revenue expectations, reporting $2.19 EPS on $532.55 million in revenue, with revenue up 10.2% year over year.
• The company raised its quarterly dividend to $0.53 per share and maintains a $250 million share-repurchase authorization. Analysts give the stock an overall “Buy” rating with a consensus price target of $187.

Jupiter Topco LLC acquired a new position in shares of Quaker Houghton (NYSE:KWR - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 198,095 shares of the specialty chemicals company's stock, valued at approximately $31,472,000. Jupiter Topco LLC owned 1.15% of Quaker Houghton at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Hsbc Holdings PLC purchased a new stake in shares of Quaker Houghton during the 2nd quarter worth $707,000. Palisade Capital Management LP purchased a new position in shares of Quaker Houghton in the 2nd quarter valued at about $8,537,000. Legal & General Group Plc purchased a new position in shares of Quaker Houghton in the 2nd quarter valued at about $4,904,000. The Manufacturers Life Insurance Company acquired a new stake in shares of Quaker Houghton in the second quarter valued at about $1,087,000. Finally, Cullen Capital Management LLC acquired a new stake in shares of Quaker Houghton in the second quarter valued at about $628,000. Institutional investors and hedge funds own 77.46% of the company's stock.

Quaker Houghton Price Performance

Shares of NYSE KWR opened at $166.27 on Friday. The company has a current ratio of 2.46, a quick ratio of 1.70 and a debt-to-equity ratio of 0.62. The company's 50-day moving average price is $159.02 and its 200 day moving average price is $147.09. Quaker Houghton has a 52 week low of $112.18 and a 52 week high of $183.01. The stock has a market cap of $2.86 billion, a price-to-earnings ratio of 29.64, a PEG ratio of 1.11 and a beta of 1.40.

Quaker Houghton (NYSE:KWR - Get Free Report) last announced its earnings results on Thursday, July 30th. The specialty chemicals company reported $2.19 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.66 by $0.53. Quaker Houghton had a net margin of 4.94% and a return on equity of 9.55%. The company had revenue of $532.55 million during the quarter, compared to analysts' expectations of $504.63 million. During the same quarter in the previous year, the business posted $1.71 earnings per share. The firm's quarterly revenue was up 10.2% compared to the same quarter last year. As a group, research analysts forecast that Quaker Houghton will post 7.85 earnings per share for the current fiscal year.

Quaker Houghton Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Friday, October 16th will be given a dividend of $0.53 per share. The ex-dividend date is Friday, October 16th. This represents a $2.12 annualized dividend and a dividend yield of 1.3%. This is an increase from Quaker Houghton's previous quarterly dividend of $0.51. Quaker Houghton's payout ratio is presently 36.19%.

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

Wall Street Analyst Weigh In

KWR has been the topic of several recent analyst reports. Weiss Ratings upgraded shares of Quaker Houghton from a "sell (d+)" rating to a "hold (c)" rating in a research report on Monday, August 3rd. Zacks Research upgraded shares of Quaker Houghton from a "hold" rating to a "strong-buy" rating in a research report on Thursday, August 6th. Deutsche Bank Aktiengesellschaft boosted their price target on Quaker Houghton from $165.00 to $185.00 and gave the stock a "buy" rating in a research note on Tuesday. Royal Bank Of Canada raised their price objective on Quaker Houghton from $177.00 to $198.00 and gave the company an "outperform" rating in a research note on Monday, August 3rd. Finally, Wall Street Zen raised Quaker Houghton from a "hold" rating to a "buy" rating in a report on Saturday, August 1st. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Buy" and a consensus target price of $187.00.

Insider Transactions at Quaker Houghton

In related news, Director William H. Osborne sold 600 shares of the company's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $168.31, for a total value of $100,986.00. Following the sale, the director owned 616 shares of the company's stock, valued at approximately $103,678.96. This represents a 49.34% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 1.00% of the company's stock.

Quaker Houghton Company Profile

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.

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