Traders Buy High Volume of Call Options on Ecolab (NYSE:ECL)

Key Points

• Ecolab call-option activity surged, with traders purchasing 2,926 contracts—about 241% above the average volume of 858—while the stock fell 1.3% to $274.52.
• Ecolab beat quarterly expectations with $2.09 in adjusted earnings per share and $4.42 billion in revenue, up 9.7% year over year. The company guided for third-quarter EPS of $2.13–$2.23.
• Analysts maintain a positive outlook, with a consensus “Moderate Buy” rating and an average price target of $327.56, while Ecolab declared a quarterly dividend of $0.73 per share.

Ecolab Inc. (NYSE:ECL - Get Free Report) was the recipient of unusually large options trading activity on Wednesday. Stock traders bought 2,926 call options on the stock. This is an increase of approximately 241% compared to the average volume of 858 call options.

Ecolab Trading Down 1.3%

NYSE ECL traded down $3.59 on Wednesday, hitting $274.52. 159,153 shares of the stock were exchanged, compared to its average volume of 1,472,618. The company has a debt-to-equity ratio of 1.18, a quick ratio of 1.57 and a current ratio of 1.84. The stock has a fifty day moving average price of $278.85 and a two-hundred day moving average price of $272.66. The firm has a market capitalization of $76.95 billion, a P/E ratio of 36.84, a P/E/G ratio of 2.71 and a beta of 0.88. Ecolab has a 52-week low of $243.15 and a 52-week high of $309.27.

Ecolab (NYSE:ECL - Get Free Report) last posted its quarterly earnings data on Tuesday, July 28th. The basic materials company reported $2.09 earnings per share for the quarter, beating analysts' consensus estimates of $2.08 by $0.01. The business had revenue of $4.42 billion for the quarter, compared to analysts' expectations of $4.38 billion. Ecolab had a net margin of 12.57% and a return on equity of 22.72%. The business's revenue was up 9.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.89 earnings per share. Ecolab has set its Q3 2026 guidance at 2.130-2.230 EPS. Research analysts forecast that Ecolab will post 8.17 EPS for the current fiscal year.

Ecolab Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Tuesday, September 15th will be paid a $0.73 dividend. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $2.92 annualized dividend and a yield of 1.1%. Ecolab's dividend payout ratio (DPR) is presently 39.19%.

Insiders Place Their Bets

In related news, EVP Benjamin Clark bought 1,000 shares of the company's stock in a transaction that occurred on Thursday, June 11th. The stock was purchased at an average price of $263.83 per share, for a total transaction of $263,830.00. Following the completion of the transaction, the executive vice president owned 1,083 shares in the company, valued at $285,727.89. The trade was a 1,204.82% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Christophe Beck sold 17,862 shares of Ecolab stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $280.14, for a total transaction of $5,003,860.68. Following the completion of the sale, the chief executive officer owned 72,932 shares in the company, valued at approximately $20,431,170.48. This represents a 19.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of ECL. Brighton Jones LLC lifted its stake in shares of Ecolab by 164.7% during the 4th quarter. Brighton Jones LLC now owns 3,700 shares of the basic materials company's stock worth $867,000 after acquiring an additional 2,302 shares during the last quarter. Sivia Capital Partners LLC lifted its position in shares of Ecolab by 39.8% during the second quarter. Sivia Capital Partners LLC now owns 1,384 shares of the basic materials company's stock worth $373,000 after purchasing an additional 394 shares during the last quarter. Schnieders Capital Management LLC. boosted its stake in shares of Ecolab by 22.9% during the second quarter. Schnieders Capital Management LLC. now owns 1,166 shares of the basic materials company's stock valued at $314,000 after purchasing an additional 217 shares during the period. NewEdge Advisors LLC boosted its stake in shares of Ecolab by 0.8% during the second quarter. NewEdge Advisors LLC now owns 21,096 shares of the basic materials company's stock valued at $5,684,000 after purchasing an additional 171 shares during the period. Finally, CIBC Asset Management Inc grew its holdings in shares of Ecolab by 49.4% in the second quarter. CIBC Asset Management Inc now owns 58,421 shares of the basic materials company's stock worth $15,741,000 after purchasing an additional 19,324 shares during the last quarter. Institutional investors own 74.91% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts recently commented on the company. JPMorgan Chase & Co. increased their price target on Ecolab from $295.00 to $305.00 and gave the company an "overweight" rating in a research note on Wednesday, July 29th. Jefferies Financial Group decreased their price objective on Ecolab from $352.00 to $345.00 and set a "buy" rating on the stock in a report on Wednesday, May 20th. Robert W. Baird set a $305.00 price target on shares of Ecolab in a research report on Wednesday, July 29th. BMO Capital Markets increased their price objective on shares of Ecolab from $345.00 to $360.00 and gave the company an "outperform" rating in a research report on Wednesday, July 29th. Finally, Citigroup boosted their target price on shares of Ecolab from $325.00 to $330.00 and gave the stock a "buy" rating in a report on Wednesday, June 24th. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $327.56.

Ecolab Company Profile

Ecolab Inc NYSE: ECL provides water, hygiene, infection prevention and technology solutions to businesses and institutions worldwide. Its customers include restaurants, hotels, hospitals, manufacturers, food and beverage companies, retailers and other organizations that rely on safe, efficient and sustainable operating environments.

The company's offerings include cleaning and sanitizing products, water-treatment and process-management systems, food-safety programs, infection-prevention solutions and pest-elimination services.

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