MSA Safety Incorporporated (NYSE:MSA) Trading Up 8.8% After Better-Than-Expected Earnings

Key Points

• MSA Safety shares rose 8.8% after the company reported quarterly EPS of $2.40, exceeding the $2.14 consensus, while revenue of $503.33 million surpassed estimates and increased 6.2% year over year.
• The company increased its quarterly dividend to $0.54 per share, or $2.16 annualized, representing a 1.1% yield and a 29.19% payout ratio.
• Analyst sentiment remains mixed, with an overall “Hold” rating and a consensus price target of $203.60; institutional investors own 92.51% of the stock.

MSA Safety Incorporporated (NYSE:MSA - Get Free Report) shares rose 8.8% during trading on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $189.12 and last traded at $189.7450. 22,273 shares changed hands during trading, a decline of 91% from the average session volume of 260,925 shares. The stock had previously closed at $174.35.

The industrial products company reported $2.40 EPS for the quarter, topping the consensus estimate of $2.14 by $0.26. The firm had revenue of $503.33 million for the quarter, compared to the consensus estimate of $496.27 million. MSA Safety Incorporporated had a net margin of 15.16% and a return on equity of 24.54%. The business's revenue was up 6.2% compared to the same quarter last year. During the same period last year, the firm posted $1.93 earnings per share.

MSA Safety Incorporporated Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Friday, May 15th were issued a dividend of $0.54 per share. The ex-dividend date of this dividend was Friday, May 15th. This represents a $2.16 annualized dividend and a dividend yield of 1.1%. This is an increase from MSA Safety Incorporporated's previous quarterly dividend of $0.53. MSA Safety Incorporporated's payout ratio is 29.19%.

Analyst Upgrades and Downgrades

Several research firms have recently commented on MSA. Wall Street Zen downgraded MSA Safety Incorporporated from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 25th. DA Davidson reduced their price target on MSA Safety Incorporporated from $235.00 to $206.00 and set a "buy" rating on the stock in a research report on Monday, May 11th. Robert W. Baird set a $197.00 price target on MSA Safety Incorporporated in a research note on Wednesday, May 6th. Finally, Weiss Ratings upgraded MSA Safety Incorporporated from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, July 17th. Two equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $203.60.

Insider Buying and Selling

In related news, CFO Julie A. Beck bought 448 shares of the company's stock in a transaction dated Thursday, June 11th. The stock was purchased at an average cost of $158.69 per share, with a total value of $71,093.12. Following the transaction, the chief financial officer owned 3,825 shares in the company, valued at approximately $606,989.25. This trade represents a 13.27% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 0.70% of the company's stock.

Hedge Funds Weigh In On MSA Safety Incorporporated

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Royal Bank of Canada lifted its position in MSA Safety Incorporporated by 39.8% during the first quarter. Royal Bank of Canada now owns 47,391 shares of the industrial products company's stock valued at $6,953,000 after buying an additional 13,501 shares during the period. Integrated Wealth Concepts LLC purchased a new stake in shares of MSA Safety Incorporporated in the 1st quarter worth about $501,000. Jane Street Group LLC grew its position in shares of MSA Safety Incorporporated by 44.7% in the 1st quarter. Jane Street Group LLC now owns 4,401 shares of the industrial products company's stock worth $646,000 after buying an additional 1,359 shares during the period. EverSource Wealth Advisors LLC increased its stake in shares of MSA Safety Incorporporated by 94.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 198 shares of the industrial products company's stock worth $33,000 after acquiring an additional 96 shares in the last quarter. Finally, Baird Financial Group Inc. increased its stake in shares of MSA Safety Incorporporated by 31.5% in the 2nd quarter. Baird Financial Group Inc. now owns 2,757 shares of the industrial products company's stock worth $462,000 after acquiring an additional 661 shares in the last quarter. Hedge funds and other institutional investors own 92.51% of the company's stock.

MSA Safety Incorporporated Stock Performance

The company has a market capitalization of $7.47 billion, a P/E ratio of 25.94 and a beta of 0.95. The company's 50 day moving average is $168.03 and its 200-day moving average is $175.05. The company has a current ratio of 3.17, a quick ratio of 1.92 and a debt-to-equity ratio of 0.45.

About MSA Safety Incorporporated

MSA Safety Incorporated develops, manufactures and supplies a wide range of safety products designed to protect workers in hazardous environments. The company's offerings span personal protective equipment such as industrial helmets, face shields, protective clothing and fall protection devices, as well as fixed and portable gas detection and monitoring systems. MSA's products are used in industries including oil and gas, mining, construction, fire service, and chemical processing to guard against risks such as gas leaks, impacts, flame exposure and falls from height.

Key product lines include self-contained breathing apparatus (SCBA) and air-purifying respirators, gas detectors and sensors, head and face protection, and fall arrest systems.

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