William Blair Investment Management LLC Acquires New Shares in Quaker Houghton $KWR

Key Points

• William Blair Investment Management acquired 420,535 Quaker Houghton shares worth approximately $66.8 million, giving it a 2.44% stake. Institutional investors collectively own 77.46% of the company.
• Quaker Houghton reported quarterly EPS of $2.19, exceeding estimates of $1.66, while revenue rose 10.2% year over year to $532.55 million. The board also authorized a $250 million share buyback and increased the quarterly dividend to $0.53.
• Analyst sentiment is broadly positive, with the stock carrying a consensus “Buy” rating and an average price target of $187.67. However, two insiders recently sold shares, and insider ownership stands at just 1%.

William Blair Investment Management LLC purchased a new stake in Quaker Houghton (NYSE:KWR - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The institutional investor purchased 420,535 shares of the specialty chemicals company's stock, valued at approximately $66,810,000. William Blair Investment Management LLC owned about 2.44% of Quaker Houghton as of its most recent SEC filing.

A number of other hedge funds have also recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. boosted its position in shares of Quaker Houghton by 67,340.0% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 16,860 shares of the specialty chemicals company's stock worth $2,315,000 after buying an additional 16,835 shares during the period. GW&K Investment Management LLC increased its stake in shares of Quaker Houghton by 42.3% during the fourth quarter. GW&K Investment Management LLC now owns 406,329 shares of the specialty chemicals company's stock worth $55,793,000 after buying an additional 120,772 shares during the period. Royce & Associates LP raised its holdings 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 valued at $103,771,000 after purchasing an additional 121,854 shares in the last quarter. Global Alpha Capital Management Ltd. acquired a new stake in Quaker Houghton in the fourth quarter valued at $21,132,000. Finally, Intech Investment Management LLC lifted its stake in Quaker Houghton by 134.8% during the fourth 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 last quarter. Hedge funds and other institutional investors own 77.46% of the company's stock.

Insider Activity at Quaker Houghton

In other news, EVP Jeewat Bijlani sold 731 shares of the 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 of the company's stock, valued at $983,655.96. This represents a 9.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director William H. Osborne sold 600 shares of the firm's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $168.31, for a total value of $100,986.00. Following the sale, the director owned 616 shares in the company, valued at approximately $103,678.96. The trade was a 49.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 1.00% of the stock is owned by insiders.

Analyst Ratings Changes

A number of brokerages recently weighed in on KWR. Truist Financial reissued a "buy" rating and issued a $190.00 price target (up from $172.00) on shares of Quaker Houghton in a research report on Monday, August 3rd. Weiss Ratings raised shares of Quaker Houghton from a "sell (d+)" rating to a "hold (c)" rating in a report on Monday, August 3rd. Zacks Research upgraded Quaker Houghton from a "hold" rating to a "strong-buy" rating in a research note on Thursday, August 6th. Wall Street Zen upgraded shares of Quaker Houghton from a "hold" rating to a "buy" rating in a research report on Saturday, August 1st. Finally, Royal Bank Of Canada lifted their price target on Quaker Houghton from $177.00 to $198.00 and gave the stock an "outperform" rating in a research note on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Buy" and a consensus price target of $187.67.

Quaker Houghton Stock Performance

Quaker Houghton stock opened at $162.95 on Friday. The firm has a market capitalization of $2.80 billion, a P/E ratio of 29.05, a PEG ratio of 1.17 and a beta of 1.40. Quaker Houghton has a 52 week low of $112.18 and a 52 week high of $183.01. 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 stock has a fifty day moving average price of $157.48 and a 200 day moving average price of $147.15.

Quaker Houghton (NYSE:KWR - Get Free Report) last released its earnings results on Thursday, July 30th. The specialty chemicals company reported $2.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.66 by $0.53. The business had revenue of $532.55 million for the quarter, compared to analysts' expectations of $504.63 million. Quaker Houghton had a net margin of 4.94% and a return on equity of 9.55%. The company's quarterly revenue was up 10.2% on a year-over-year basis. During the same period last year, the company earned $1.71 earnings per share. Equities research analysts anticipate that Quaker Houghton will post 7.72 earnings per share for the current year.

Quaker Houghton declared that its board has initiated a share 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 often a sign that the company's board of directors believes its stock is undervalued.

Quaker Houghton Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Friday, October 16th will be paid a $0.53 dividend. The ex-dividend date of this dividend 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 dividend payout ratio is presently 36.19%.

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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