Koppers (NYSE:KOP) Shares Gap Down on Disappointing Earnings

Key Points

• Koppers Holdings saw its shares gap down significantly from $33.27 to $28.76 after reporting weaker than expected quarterly earnings, posting $1.48 EPS against an estimate of $1.49.
• The company also announced a quarterly dividend of $0.08 per share, with a yield of 1.1%, to be paid to shareholders on September 15th.
• Institutional investors hold 92.75% of Koppers' stock, with notable acquisitions and increases in stakes from various hedge funds during the second quarter.

Koppers Holdings Inc. (NYSE:KOP - Get Free Report) shares gapped down before the market opened on Friday following a dissappointing earnings announcement. The stock had previously closed at $33.27, but opened at $28.76. Koppers shares last traded at $29.44, with a volume of 52,388 shares trading hands.

The specialty chemicals company reported $1.48 EPS for the quarter, missing the consensus estimate of $1.49 by ($0.01). The firm had revenue of $504.80 million for the quarter, compared to the consensus estimate of $540.30 million. Koppers had a net margin of 1.24% and a return on equity of 17.41%. The firm's revenue for the quarter was down 10.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.36 earnings per share.

Koppers Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Friday, August 29th will be paid a dividend of $0.08 per share. This represents a $0.32 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend is Friday, August 29th. Koppers's dividend payout ratio (DPR) is presently 44.44%.

Analysts Set New Price Targets

Separately, Barrington Research dropped their price objective on shares of Koppers from $64.00 to $55.00 and set an "outperform" rating for the company in a research note on Friday.

Institutional Investors Weigh In On Koppers

Large investors have recently modified their holdings of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Koppers by 3.2% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 11,602 shares of the specialty chemicals company's stock worth $325,000 after buying an additional 361 shares during the last quarter. Teacher Retirement System of Texas grew its position in shares of Koppers by 4.3% in the 2nd quarter. Teacher Retirement System of Texas now owns 11,673 shares of the specialty chemicals company's stock worth $375,000 after buying an additional 481 shares during the last quarter. SummerHaven Investment Management LLC grew its position in shares of Koppers by 2.2% in the 1st quarter. SummerHaven Investment Management LLC now owns 22,451 shares of the specialty chemicals company's stock worth $629,000 after buying an additional 483 shares during the last quarter. State of Alaska Department of Revenue grew its position in Koppers by 6.0% during the 2nd quarter. State of Alaska Department of Revenue now owns 11,903 shares of the specialty chemicals company's stock worth $382,000 after purchasing an additional 672 shares during the last quarter. Finally, Victory Capital Management Inc. grew its position in Koppers by 2.3% during the 1st quarter. Victory Capital Management Inc. now owns 31,300 shares of the specialty chemicals company's stock worth $876,000 after purchasing an additional 700 shares during the last quarter. Institutional investors own 92.75% of the company's stock.

Koppers Stock Performance

The company has a market cap of $577.29 million, a PE ratio of 40.07 and a beta of 1.40. The company has a current ratio of 2.64, a quick ratio of 1.10 and a debt-to-equity ratio of 1.96. The firm's 50-day simple moving average is $32.61 and its two-hundred day simple moving average is $29.90.

About Koppers

Koppers Holdings Inc provides treated wood products, wood preservation chemicals, and carbon compounds in the United States, Australasia, Europe, and internationally. The company operates through Railroad and Utility Products and Services (RUPS), Performance Chemicals (PC), and Carbon Materials and Chemicals (CMC) segments.