Koppers (NYSE:KOP) Shares Gap Up After Strong Earnings

Key Points

• EPS beat and stock jump: Koppers reported Q EPS of $0.57 vs. $0.44 expected, prompting the shares to gap up from $41.16 to an open of $44.38 and trade around $44.36 on the rally.
• Dividend announced: The company declared a quarterly dividend of $0.09 ($0.36 annualized) with an ex-dividend date of May 29 and a yield of about 0.8% (payout ratio 13%).
• Analyst outlook: MarketBeat shows a consensus rating of Moderate Buy with a $52.50 target (two Buys, two Holds), including a $55 price objective from Barrington Research.

Koppers Holdings Inc. (NYSE:KOP - Get Free Report)'s stock price gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $41.16, but opened at $44.38. Koppers shares last traded at $44.36, with a volume of 32,228 shares traded.

The specialty chemicals company reported $0.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.44 by $0.13. Koppers had a return on equity of 15.47% and a net margin of 2.98%.The company's revenue was down .3% on a year-over-year basis. During the same quarter last year, the firm posted $0.71 earnings per share.

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Koppers Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Friday, May 29th will be issued a dividend of $0.09 per share. The ex-dividend date of this dividend is Friday, May 29th. This represents a $0.36 annualized dividend and a yield of 0.8%. Koppers's dividend payout ratio is 13.00%.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the stock. Barrington Research reaffirmed an "outperform" rating and set a $55.00 price objective on shares of Koppers in a report on Monday. Wall Street Zen raised shares of Koppers from a "hold" rating to a "buy" rating in a report on Saturday, February 28th. Zacks Research raised shares of Koppers from a "strong sell" rating to a "hold" rating in a report on Monday, February 9th. Finally, Weiss Ratings upgraded Koppers from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, April 29th. Two investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, Koppers has a consensus rating of "Moderate Buy" and a consensus target price of $52.50.

Insider Buying and Selling at Koppers

In other news, CEO M Leroy Ball sold 2,489 shares of the business's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $37.91, for a total value of $94,357.99. Following the completion of the sale, the chief executive officer owned 447,459 shares of the company's stock, valued at approximately $16,963,170.69. The trade was a 0.55% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 7.28% of the company's stock.

Hedge Funds Weigh In On Koppers

A number of institutional investors have recently added to or reduced their stakes in KOP. Tower Research Capital LLC TRC raised its holdings in Koppers by 258.1% in the second quarter. Tower Research Capital LLC TRC now owns 1,930 shares of the specialty chemicals company's stock worth $62,000 after purchasing an additional 1,391 shares in the last quarter. Quantbot Technologies LP grew its holdings in Koppers by 95.6% in the second quarter. Quantbot Technologies LP now owns 2,130 shares of the specialty chemicals company's stock worth $68,000 after purchasing an additional 1,041 shares during the period. BNP Paribas Financial Markets boosted its position in shares of Koppers by 23.5% in the 2nd quarter. BNP Paribas Financial Markets now owns 3,235 shares of the specialty chemicals company's stock worth $104,000 after purchasing an additional 615 shares in the last quarter. Kestra Advisory Services LLC bought a new stake in shares of Koppers in the 4th quarter worth approximately $114,000. Finally, Quadrant Capital Group LLC bought a new stake in shares of Koppers in the 3rd quarter worth approximately $160,000. Institutional investors own 92.75% of the company's stock.

Koppers Stock Performance

The company has a debt-to-equity ratio of 1.59, a quick ratio of 1.13 and a current ratio of 2.94. The business has a 50-day moving average price of $38.02 and a 200 day moving average price of $32.36. The stock has a market capitalization of $857.79 million, a P/E ratio of 16.01, a PEG ratio of 9.95 and a beta of 1.28.

About Koppers

Koppers Company, Inc is a global specialty chemicals and materials manufacturer serving diverse industrial markets. The company operates through two primary segments: Carbon Materials & Chemicals, which produces a range of coal tar–based products, phenolic specialties and carbon compounds; and Railroad Products & Services, which offers wood treating and infrastructure services for rail and utility customers.

In its Carbon Materials & Chemicals segment, Koppers supplies coal tar pitch, refined creosote, coal tar‐based distillates and phenolic resins used in aluminum smelting, graphite electrode manufacture, carbon fiber production, and water treatment applications.

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