Wellington Management Group LLP Trims Holdings in Element Solutions Inc. $ESI

Key Points

• Wellington Management cut its Element Solutions stake by 36.5% in the second quarter, selling 855,392 shares and retaining 1.49 million shares valued at approximately $71.1 million. Institutional investors collectively own 92.32% of the company.
• Element Solutions exceeded quarterly expectations, reporting $0.47 in EPS versus the $0.43 consensus and revenue of $977.9 million, up 56.4% year over year. Analysts expect full-year EPS of $1.80.
• The company declared a quarterly dividend of $0.08 per share, equivalent to a 0.9% yield, while analysts maintain a consensus “Buy” rating with an average price target of $46, above the reported share price of $34.41.

Wellington Management Group LLP lowered its holdings in Element Solutions Inc. (NYSE:ESI - Free Report) by 36.5% in the 2nd quarter, according to the company in its most recent filing with the SEC. The firm owned 1,488,343 shares of the company's stock after selling 855,392 shares during the quarter. Wellington Management Group LLP owned approximately 0.61% of Element Solutions worth $71,068,000 at the end of the most recent quarter.

Other large investors have also recently made changes to their positions in the company. Assetmark Inc. raised its holdings in shares of Element Solutions by 151.0% during the first quarter. Assetmark Inc. now owns 778 shares of the company's stock valued at $27,000 after acquiring an additional 468 shares in the last quarter. Los Angeles Capital Management LLC purchased a new stake in shares of Element Solutions in the 4th quarter worth about $28,000. NewEdge Advisors LLC boosted its stake in shares of Element Solutions by 57.4% during the 1st quarter. NewEdge Advisors LLC now owns 949 shares of the company's stock valued at $32,000 after purchasing an additional 346 shares in the last quarter. Johnson Financial Group Inc. bought a new position in Element Solutions in the third quarter worth about $47,000. Finally, Measured Wealth Private Client Group LLC bought a new position in shares of Element Solutions in the 3rd quarter worth approximately $49,000. 92.32% of the stock is currently owned by institutional investors.

Element Solutions Trading Up 0.1%

Shares of NYSE:ESI opened at $34.41 on Thursday. 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 company has a market cap of $8.38 billion, a P/E ratio of 46.50, a PEG ratio of 1.18 and a beta of 1.26. The stock's fifty day moving average price is $38.69 and its 200-day moving average price is $38.42.

Element Solutions (NYSE:ESI - Get Free Report) last released its quarterly earnings data on Monday, July 27th. The company reported $0.47 EPS for the quarter, topping the consensus estimate of $0.43 by $0.04. Element Solutions had a return on equity of 14.88% and a net margin of 5.67%.The company had revenue of $977.90 million during the quarter, compared to the consensus estimate of $873.19 million. During the same period last year, the company earned $0.20 EPS. Element Solutions's revenue for the quarter was up 56.4% on a year-over-year basis. Sell-side analysts expect that Element Solutions Inc. will post 1.8 earnings per share for the current year.

Element Solutions Dividend Announcement

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

Wall Street Analysts Forecast Growth

Several brokerages have commented on ESI. Jefferies Financial Group initiated coverage on Element Solutions in a research report on Wednesday. They set a "buy" rating and a $55.00 price objective for the company. Freedom Capmkts upgraded shares of Element Solutions from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 28th. William Blair set a $48.00 price target on shares of Element Solutions in a research report on Friday, August 28th. Truist Financial boosted their price objective on shares of Element Solutions from $47.00 to $48.00 and gave the stock a "buy" rating in a research note on Thursday, July 9th. Finally, Mizuho restated a "neutral" rating and issued a $45.00 price objective (down from $54.00) on shares of Element Solutions in a report on Tuesday, July 14th. Four analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and an average target price of $46.00.

Element Solutions 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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