K2 Principal Fund L.P. Invests $1.45 Million in Element Solutions Inc. $ESI

Key Points

• K2 Principal Fund purchased 30,284 shares of Element Solutions worth approximately $1.45 million in the second quarter. Institutional investors collectively own 92.32% of the company.
• Element Solutions reported stronger-than-expected quarterly results, with adjusted EPS of $0.47 versus the $0.43 consensus estimate and revenue of $977.9 million, up 56.4% year over year.
• Shares recently traded at $37.32, down 4.8%, while analysts maintained a generally positive outlook with a consensus “Buy” rating and a $43.50 price target. The company also declared a quarterly dividend of $0.08 per share.

K2 Principal Fund L.P. purchased a new stake in Element Solutions Inc. (NYSE:ESI - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund purchased 30,284 shares of the company's stock, valued at approximately $1,446,000.

Several other institutional investors have also recently made changes to their positions in ESI. BlackRock Inc. purchased a new position in shares of Element Solutions in the second quarter valued at $1,317,663,000. Bank of New York Mellon Corp purchased a new stake in Element Solutions during the 2nd quarter worth about $110,892,000. Invesco Ltd. lifted its holdings in Element Solutions by 43.6% during the 4th quarter. Invesco Ltd. now owns 7,069,238 shares of the company's stock worth $176,660,000 after purchasing an additional 2,146,512 shares in the last quarter. Scopus Asset Management L.P. boosted its stake in Element Solutions by 134.6% in the 2nd quarter. Scopus Asset Management L.P. now owns 3,426,156 shares of the company's stock worth $77,602,000 after purchasing an additional 1,965,691 shares during the period. Finally, Jain Global LLC boosted its stake in Element Solutions by 253.3% in the 4th quarter. Jain Global LLC now owns 2,127,297 shares of the company's stock worth $53,161,000 after purchasing an additional 1,525,195 shares during the period. Hedge funds and other institutional investors own 92.32% of the company's stock.

Element Solutions Trading Down 4.8%

Shares of ESI stock opened at $37.32 on Wednesday. The business has a 50-day moving average of $40.80 and a 200 day moving average of $38.03. The company has a debt-to-equity ratio of 0.73, a current ratio of 2.91 and a quick ratio of 2.11. Element Solutions Inc. has a 1-year low of $22.86 and a 1-year high of $49.25. The stock has a market capitalization of $9.09 billion, a PE ratio of 50.43, a P/E/G ratio of 1.34 and a beta of 1.26.

Element Solutions (NYSE:ESI - Get Free Report) last announced its quarterly earnings results on Monday, July 27th. The company reported $0.47 EPS for the quarter, topping analysts' consensus estimates of $0.43 by $0.04. The business had revenue of $977.90 million for the quarter, compared to analysts' expectations of $873.19 million. Element Solutions had a return on equity of 14.88% and a net margin of 5.67%.The business's quarterly revenue was up 56.4% on a year-over-year basis. During the same period in the previous year, the firm earned $0.20 EPS. As a group, sell-side analysts anticipate that Element Solutions Inc. will post 1.81 earnings per share for the current year.

Element Solutions Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be issued a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date is Tuesday, September 1st. Element Solutions's dividend payout ratio is currently 43.24%.

Wall Street Analysts Forecast Growth

ESI has been the topic of a number of analyst reports. UBS Group upped their target price on shares of Element Solutions to $52.00 and gave the stock a "buy" rating in a report on Thursday, April 30th. BMO Capital Markets reissued an "outperform" rating on shares of Element Solutions in a report on Tuesday, July 28th. Seaport Research Partners restated a "buy" rating and set a $49.00 price target on shares of Element Solutions in a research report on Tuesday, May 5th. Wolfe Research set a $47.00 price target on shares of Element Solutions in a report on Wednesday, July 29th. Finally, Truist Financial increased their price objective on Element Solutions from $47.00 to $48.00 and gave the stock a "buy" rating in a research report on Thursday, July 9th. Three research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus price target of $43.50.

Element Solutions Company Profile

Element Solutions Inc is a global specialty chemicals company that develops and supplies highly engineered chemistries to performance-driven end markets. The company's solutions serve customers across the electronics, energy, transportation, consumer and industrial sectors, with a particular emphasis on electronics chemicals, metal plating, and industrial coatings additives.

In the electronics market, Element Solutions provides a range of plating and surface-treatment chemistries used in the manufacture of printed circuit boards, semiconductor devices, and advanced display technologies.

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