Norges Bank Invests $17.98 Million in Quaker Houghton $KWR

Key Points

• Norges Bank opened a new position in Quaker Houghton, buying 130,956 shares worth about $17.98 million in the fourth quarter and ending with 0.76% ownership.
• Other institutional investors also increased their stakes, and hedge funds plus other institutions now hold 77.46% of the company’s shares.
• Wall Street sentiment is mixed but generally positive: the stock has a Moderate Buy consensus with a $168 average price target, while Quaker Houghton also reported a slight earnings miss but stronger-than-expected revenue in its latest quarter.

Norges Bank purchased a new position in Quaker Houghton (NYSE:KWR - Free Report) during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund purchased 130,956 shares of the specialty chemicals company's stock, valued at approximately $17,982,000. Norges Bank owned 0.76% of Quaker Houghton as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. Intech Investment Management LLC lifted its position in shares of Quaker Houghton by 134.8% in the 4th quarter. Intech Investment Management LLC now owns 13,052 shares of the specialty chemicals company's stock worth $1,792,000 after purchasing an additional 7,493 shares during the period. Penn Capital Management Company LLC lifted its position in shares of Quaker Houghton by 21.6% in the 4th quarter. Penn Capital Management Company LLC now owns 8,340 shares of the specialty chemicals company's stock worth $1,145,000 after purchasing an additional 1,481 shares during the period. Royce & Associates LP lifted its position in shares of Quaker Houghton by 19.2% in the 4th quarter. Royce & Associates LP now owns 755,740 shares of the specialty chemicals company's stock worth $103,771,000 after purchasing an additional 121,854 shares during the period. William Blair Investment Management LLC lifted its position in shares of Quaker Houghton by 33.6% during the 4th quarter. William Blair Investment Management LLC now owns 469,981 shares of the specialty chemicals company's stock valued at $64,533,000 after acquiring an additional 118,321 shares during the period. Finally, Global Retirement Partners LLC lifted its position in shares of Quaker Houghton by 556.9% during the 4th quarter. Global Retirement Partners LLC now owns 335 shares of the specialty chemicals company's stock valued at $46,000 after acquiring an additional 284 shares during the period. Institutional investors and hedge funds own 77.46% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the stock. Jefferies Financial Group dropped their target price on shares of Quaker Houghton from $203.00 to $175.00 and set a "buy" rating on the stock in a research report on Monday, April 6th. Zacks Research upgraded shares of Quaker Houghton from a "strong sell" rating to a "hold" rating in a research report on Thursday, May 21st. Weiss Ratings upgraded shares of Quaker Houghton from a "sell (d)" rating to a "sell (d+)" rating in a research report on Wednesday, May 6th. 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 research report on Monday, May 4th. Finally, Truist Financial assumed coverage on shares of Quaker Houghton in a research report on Monday. They set a "buy" rating and a $172.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $168.00.

Quaker Houghton Stock Performance

Shares of KWR stock opened at $143.56 on Wednesday. The firm has a market capitalization of $2.49 billion, a PE ratio of 512.73, a price-to-earnings-growth ratio of 1.09 and a beta of 1.43. The firm has a fifty day simple moving average of $136.88 and a two-hundred day simple moving average of $142.53. The company has a current ratio of 2.45, a quick ratio of 1.72 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.

Quaker Houghton (NYSE:KWR - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The specialty chemicals company reported $1.63 EPS for the quarter, missing analysts' consensus estimates of $1.66 by ($0.03). The business had revenue of $480.48 million for the quarter, compared to the consensus estimate of $463.70 million. Quaker Houghton had a net margin of 0.22% and a return on equity of 9.03%. The business's revenue for the quarter was up 8.5% compared to the same quarter last year. During the same quarter last year, the firm posted $1.58 EPS. Analysts forecast that Quaker Houghton will post 7.19 EPS for the current fiscal year.

Quaker Houghton Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Friday, July 17th will be paid a $0.508 dividend. The ex-dividend date is Friday, July 17th. This represents a $2.03 annualized dividend and a dividend yield of 1.4%. Quaker Houghton's dividend payout ratio is presently 725.00%.

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

Insider Activity

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

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.

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