Minerals Technologies (NYSE:MTX) Shares Gap Up Following Strong Earnings

Key Points

• Minerals Technologies Inc. shares experienced a significant increase, gapping up to $61.59 after reporting earnings of $1.55 per share, exceeding analysts' expectations of $1.43.
• The company's quarterly revenue was slightly below projections at $528.90 million, down 2.3% compared to the same quarter last year.
• Minerals Technologies announced a quarterly dividend of $0.11, with a dividend yield of 0.71%, scheduled to be paid on September 5th to stockholders of record.
• Several large institutional investors, including FMR LLC and American Century Companies Inc., have increased their holdings in Minerals Technologies, indicating growing confidence in the company.

Minerals Technologies Inc. (NYSE:MTX - Get Free Report) shares gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $59.20, but opened at $61.59. Minerals Technologies shares last traded at $62.22, with a volume of 30,943 shares traded.

The basic materials company reported $1.55 EPS for the quarter, topping analysts' consensus estimates of $1.43 by $0.12. Minerals Technologies had a net margin of 0.10% and a return on equity of 10.64%. The business had revenue of $528.90 million for the quarter, compared to analysts' expectations of $529.13 million. During the same quarter last year, the company earned $1.65 EPS. The business's revenue was down 2.3% on a year-over-year basis.

Minerals Technologies Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 5th. Investors of record on Friday, August 15th will be paid a $0.11 dividend. This represents a $0.44 annualized dividend and a yield of 0.73%. The ex-dividend date of this dividend is Friday, August 15th. Minerals Technologies's dividend payout ratio is currently 733.33%.

Analyst Ratings Changes

MTX has been the subject of several analyst reports. Truist Financial increased their price target on shares of Minerals Technologies from $80.00 to $84.00 and gave the company a "buy" rating in a research note on Monday. Wall Street Zen cut shares of Minerals Technologies from a "buy" rating to a "hold" rating in a report on Wednesday, April 9th.

Insider Activity at Minerals Technologies

In other news, CFO Erik Aldag acquired 1,000 shares of Minerals Technologies stock in a transaction dated Wednesday, April 30th. The shares were acquired at an average cost of $50.37 per share, for a total transaction of $50,370.00. Following the acquisition, the chief financial officer owned 4,245 shares of the company's stock, valued at $213,820.65. This trade represents a 30.82% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Kristina M. Johnson purchased 1,000 shares of the firm's stock in a transaction on Friday, May 2nd. The shares were acquired at an average cost of $53.79 per share, with a total value of $53,790.00. Following the completion of the acquisition, the director directly owned 1,400 shares in the company, valued at $75,306. The trade was a 250.00% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have acquired a total of 2,370 shares of company stock valued at $124,255 in the last quarter. 3.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Minerals Technologies

Several large investors have recently bought and sold shares of MTX. FMR LLC boosted its holdings in shares of Minerals Technologies by 42.7% in the fourth quarter. FMR LLC now owns 1,761,925 shares of the basic materials company's stock valued at $134,276,000 after acquiring an additional 527,206 shares during the period. American Century Companies Inc. lifted its holdings in shares of Minerals Technologies by 24.0% in the 1st quarter. American Century Companies Inc. now owns 1,068,079 shares of the basic materials company's stock valued at $67,898,000 after buying an additional 206,906 shares during the period. Geode Capital Management LLC boosted its position in shares of Minerals Technologies by 0.9% during the 4th quarter. Geode Capital Management LLC now owns 873,123 shares of the basic materials company's stock worth $66,554,000 after purchasing an additional 7,780 shares in the last quarter. Boston Trust Walden Corp boosted its holdings in Minerals Technologies by 9.2% during the second quarter. Boston Trust Walden Corp now owns 659,583 shares of the basic materials company's stock worth $36,323,000 after buying an additional 55,345 shares in the last quarter. Finally, Snyder Capital Management L P grew its holdings in shares of Minerals Technologies by 8.5% in the 4th quarter. Snyder Capital Management L P now owns 630,381 shares of the basic materials company's stock worth $48,041,000 after acquiring an additional 49,376 shares during the period. Institutional investors and hedge funds own 97.29% of the company's stock.

Minerals Technologies Trading Down 1.7%

The company has a debt-to-equity ratio of 0.57, a current ratio of 1.95 and a quick ratio of 1.35. The firm has a market cap of $1.91 billion, a PE ratio of 1,001.92 and a beta of 1.20. The business has a 50-day moving average price of $57.65 and a two-hundred day moving average price of $62.55.

Minerals Technologies Company Profile

Minerals Technologies Inc develops, produces, and markets various mineral, mineral-based, and related systems and services. The company operates through two segments, Consumer & Specialties, and Engineered Solutions segments. The Consumer & Specialties segment offers household and personal care products, such as pet litter, personal care, fabric care, edible oil and other fluid purification, animal health, and agricultural products; and specialty additives products, including precipitated calcium carbonate and ground calcium carbonate products that are used in the paper, paperboard, and fiber based packaging industries, as well as automotive, construction, and table and food applications.