PPG Industries (NYSE:PPG) Shares Gap Up on Strong Earnings

PPG Industries, Inc. (NYSE:PPG - Get Free Report) shares gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $103.81, but opened at $110.10. PPG Industries shares last traded at $107.41, with a volume of 473,718 shares changing hands.

The specialty chemicals company reported $1.72 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.62 by $0.10. The company had revenue of $3.68 billion for the quarter, compared to analysts' expectations of $3.67 billion. PPG Industries had a return on equity of 23.78% and a net margin of 6.41%. PPG Industries's revenue was down 4.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.87 EPS.

PPG Industries Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 12th. Investors of record on Monday, May 12th will be paid a dividend of $0.68 per share. The ex-dividend date of this dividend is Monday, May 12th. This represents a $2.72 annualized dividend and a yield of 2.46%. PPG Industries's dividend payout ratio is presently 57.51%.

Analysts Set New Price Targets

Several brokerages have recently weighed in on PPG. Seaport Res Ptn cut shares of PPG Industries from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, March 5th. Mizuho dropped their price target on shares of PPG Industries from $150.00 to $140.00 and set an "outperform" rating for the company in a research note on Monday, February 3rd. UBS Group lifted their price target on shares of PPG Industries from $110.00 to $111.00 and gave the company a "neutral" rating in a research report on Wednesday. Bank of America reiterated a "neutral" rating and issued a $126.00 price objective (down from $143.00) on shares of PPG Industries in a research report on Tuesday, April 15th. Finally, Barclays restated an "equal weight" rating on shares of PPG Industries in a research report on Monday, February 3rd. Nine equities research analysts have rated the stock with a hold rating, six have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $128.83.

Insider Activity at PPG Industries

In other news, CEO Timothy M. Knavish sold 4,800 shares of the stock in a transaction dated Friday, February 14th. The shares were sold at an average price of $118.35, for a total transaction of $568,080.00. Following the sale, the chief executive officer now owns 35,833 shares of the company's stock, valued at approximately $4,240,835.55. This represents a 11.81 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.33% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On PPG Industries

Several large investors have recently added to or reduced their stakes in PPG. Vanguard Group Inc. grew its stake in shares of PPG Industries by 2.6% in the fourth quarter. Vanguard Group Inc. now owns 29,369,691 shares of the specialty chemicals company's stock worth $3,508,210,000 after acquiring an additional 756,937 shares in the last quarter. Wellington Management Group LLP boosted its holdings in PPG Industries by 17.7% in the fourth quarter. Wellington Management Group LLP now owns 10,567,051 shares of the specialty chemicals company's stock valued at $1,262,234,000 after purchasing an additional 1,590,041 shares during the period. Geode Capital Management LLC increased its holdings in PPG Industries by 1.7% during the 4th quarter. Geode Capital Management LLC now owns 5,546,472 shares of the specialty chemicals company's stock worth $660,752,000 after purchasing an additional 93,455 shares during the period. Invesco Ltd. raised its position in PPG Industries by 6.1% in the 4th quarter. Invesco Ltd. now owns 4,726,630 shares of the specialty chemicals company's stock valued at $564,596,000 after purchasing an additional 271,699 shares in the last quarter. Finally, Kovitz Investment Group Partners LLC boosted its stake in shares of PPG Industries by 482.2% in the 4th quarter. Kovitz Investment Group Partners LLC now owns 4,337,649 shares of the specialty chemicals company's stock valued at $518,132,000 after buying an additional 3,592,655 shares during the period. 81.86% of the stock is owned by hedge funds and other institutional investors.

PPG Industries Stock Performance

The stock has a 50-day moving average price of $106.97 and a 200 day moving average price of $116.29. The company has a quick ratio of 1.13, a current ratio of 1.58 and a debt-to-equity ratio of 0.77. The firm has a market capitalization of $25.07 billion, a price-to-earnings ratio of 23.35, a P/E/G ratio of 2.19 and a beta of 1.16.

About PPG Industries

PPG Industries, Inc manufactures and distributes paints, coatings, and specialty materials in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through two segments, Performance Coatings and Industrial Coatings. The Performance Coatings segment offers coatings, solvents, adhesives, sealants, sundries, and software for automotive and commercial transport/fleet repair and refurbishing, light industrial coatings, and specialty coatings for signs; wood stains; paints, thermoplastics, pavement marking products, and other advanced technologies for pavement marking for government, commercial infrastructure, painting, and maintenance contractors; and coatings, sealants, transparencies, transparent armor, adhesives, engineered materials, and packaging and chemical management services for commercial, military, regional jet, and general aviation aircraft.