Ingevity (NYSE:NGVT) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Ingevity Corporation's shares jumped from $40.85 to $46.83 following a quarterly earnings report that revealed an EPS of $1.39, beating estimates by $0.37.
• Despite the positive earnings, Ingevity's revenue declined by 6.5% year-over-year, totaling $365.10 million, and the company recorded a negative net margin of 26.20%.
• Analysts have mixed sentiments, with Wells Fargo raising its price target to $48.00 while Wall Street Zen downgraded its rating from "strong-buy" to "buy."

Ingevity Corporation (NYSE:NGVT - Get Free Report)'s share price gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $40.85, but opened at $46.83. Ingevity shares last traded at $48.55, with a volume of 49,402 shares.

The company reported $1.39 EPS for the quarter, beating the consensus estimate of $1.02 by $0.37. The business had revenue of $365.10 million for the quarter, compared to the consensus estimate of $378.70 million. Ingevity had a positive return on equity of 63.76% and a negative net margin of 26.20%. The company's revenue was down 6.5% compared to the same quarter last year. During the same period last year, the business posted $1.01 EPS.

Wall Street Analyst Weigh In

NGVT has been the topic of a number of research reports. Wells Fargo & Company raised their price target on Ingevity from $38.00 to $48.00 and gave the stock an "equal weight" rating in a research note on Monday, July 14th. Wall Street Zen downgraded Ingevity from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 26th.

Hedge Funds Weigh In On Ingevity

A number of institutional investors have recently bought and sold shares of NGVT. JPMorgan Chase & Co. raised its holdings in Ingevity by 58.4% in the 4th quarter. JPMorgan Chase & Co. now owns 186,256 shares of the company's stock worth $7,590,000 after purchasing an additional 68,675 shares during the period. O Shaughnessy Asset Management LLC bought a new position in Ingevity in the 4th quarter worth $214,000. Franklin Resources Inc. raised its holdings in Ingevity by 89.1% in the 4th quarter. Franklin Resources Inc. now owns 32,065 shares of the company's stock worth $1,307,000 after purchasing an additional 15,109 shares during the period. Wells Fargo & Company MN raised its holdings in Ingevity by 46.4% in the 4th quarter. Wells Fargo & Company MN now owns 37,055 shares of the company's stock worth $1,510,000 after purchasing an additional 11,742 shares during the period. Finally, Russell Investments Group Ltd. raised its holdings in Ingevity by 4.0% in the 4th quarter. Russell Investments Group Ltd. now owns 162,451 shares of the company's stock worth $6,620,000 after purchasing an additional 6,246 shares during the period. 91.59% of the stock is owned by institutional investors.

Ingevity Trading Up 17.1%

The stock has a fifty day moving average of $43.90 and a 200 day moving average of $41.98. The company has a market capitalization of $1.74 billion, a P/E ratio of -4.96 and a beta of 1.36. The company has a debt-to-equity ratio of 5.68, a quick ratio of 1.08 and a current ratio of 2.00.

Ingevity Company Profile

Ingevity Corporation manufactures and sells activated carbon products, derivative specialty chemicals, and engineered polymers in North America, the Asia Pacific, Europe, the Middle East, Africa, and South America. It operates through three segments: Performance Materials, Performance Chemicals, and Advanced Polymer Technologies.

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