Sensient Technologies Sees Unusually High Options Volume (NYSE:SXT)

Key Points

• Unusually high bearish options activity: Investors purchased 8,000 put options on Sensient Technologies, more than 100 times the typical daily volume of 78.
• Strong quarterly performance: Sensient reported adjusted earnings of $1.20 per share, exceeding estimates of $1.03, while revenue rose 11.6% year over year to $462.08 million.
• Analyst sentiment remains positive: The stock carries a “Moderate Buy” consensus rating with an average price target of $140.67, compared with its trading price of $132.09.

Sensient Technologies Corporation (NYSE:SXT - Get Free Report) was the recipient of some unusual options trading on Monday. Investors purchased 8,000 put options on the company. This is an increase of 10,156% compared to the typical daily volume of 78 put options.

Insider Transactions at Sensient Technologies

In other news, Director Mario Ferruzzi sold 1,200 shares of the firm's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $129.48, for a total transaction of $155,376.00. Following the sale, the director owned 7,352 shares of the company's stock, valued at $951,936.96. This trade represents a 14.03% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Corporate insiders own 1.30% of the company's stock.

Institutional Trading of Sensient Technologies

Several institutional investors and hedge funds have recently modified their holdings of SXT. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in Sensient Technologies in the 2nd quarter worth $26,000. Silvant Capital Management LLC purchased a new position in shares of Sensient Technologies in the second quarter valued at about $27,000. Global Retirement Partners LLC purchased a new position in shares of Sensient Technologies in the second quarter valued at about $36,000. Integrated Wealth Concepts LLC purchased a new position in shares of Sensient Technologies in the second quarter valued at about $37,000. Finally, GAMMA Investing LLC boosted its stake in shares of Sensient Technologies by 35.2% in the second quarter. GAMMA Investing LLC now owns 938 shares of the specialty chemicals company's stock worth $116,000 after acquiring an additional 244 shares during the period. 90.86% of the stock is currently owned by institutional investors.

Sensient Technologies Stock Performance

Shares of SXT stock traded down $0.56 during trading hours on Monday, reaching $132.09. 80,095 shares of the company traded hands, compared to its average volume of 393,998. Sensient Technologies has a 12-month low of $82.60 and a 12-month high of $138.82. The company has a debt-to-equity ratio of 0.61, a current ratio of 4.39 and a quick ratio of 1.72. The company has a market cap of $5.62 billion, a P/E ratio of 35.56 and a beta of 0.84. The firm has a 50-day moving average price of $131.98 and a 200 day moving average price of $121.47.

Sensient Technologies (NYSE:SXT - Get Free Report) last announced its quarterly earnings data on Friday, July 24th. The specialty chemicals company reported $1.20 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.03 by $0.17. The company had revenue of $462.08 million during the quarter, compared to the consensus estimate of $448.84 million. Sensient Technologies had a return on equity of 13.77% and a net margin of 9.27%. The firm's revenue was up 11.6% on a year-over-year basis. During the same period in the previous year, the company posted $0.88 EPS. As a group, sell-side analysts predict that Sensient Technologies will post 4.20 earnings per share for the current fiscal year.

Analysts Set New Price Targets

SXT has been the topic of a number of research reports. Wall Street Zen upgraded Sensient Technologies from a "hold" rating to a "buy" rating in a research note on Monday, October 19th. Zacks Research downgraded shares of Sensient Technologies from a "strong-buy" rating to a "hold" rating in a research report on Friday, September 25th. Robert W. Baird lifted their price target on shares of Sensient Technologies from $125.00 to $140.00 and gave the stock an "outperform" rating in a research note on Monday, July 27th. Rothschild & Co Redburn started coverage on shares of Sensient Technologies in a research report on Wednesday, July 8th. They set a "neutral" rating and a $125.00 price objective for the company. Finally, UBS Group upped their price objective on Sensient Technologies from $155.00 to $157.00 and gave the stock a "buy" rating in a research note on Wednesday, September 30th. Three analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $140.67.

About Sensient Technologies

Sensient Technologies Corporation is a global manufacturer of colors, flavors and extracts used in food, beverages, pharmaceuticals, cosmetics and other consumer and industrial products. The company develops customized ingredient solutions designed to improve the appearance, taste, aroma and overall sensory qualities of finished products.

Sensient's product portfolio includes natural and synthetic food colors, coloring systems, flavor compounds, botanical extracts and other specialty ingredients.

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