Element Solutions (NYSE:ESI) Share Price Breaks Above Fifty Day Moving Average - Here's What Happened

Key Points

• Element Solutions shares rose above their 50-day moving average, reaching $35.82 before last trading at $35.7640, compared with a 50-day average of $35.25.
• Analysts maintain a positive outlook, with a consensus “Buy” rating and an average price target of $46.36. Recent targets range from $42 to $48.
• The company beat quarterly expectations, reporting $0.50 EPS versus $0.48 expected and $995.3 million in revenue, up 51.7% year over year; it also pays a $0.08 quarterly dividend.

Element Solutions Inc. (NYSE:ESI - Get Free Report) shares crossed above its 50 day moving average during trading on Wednesday. The stock has a 50 day moving average of $35.25 and traded as high as $35.82. Element Solutions shares last traded at $35.7640, with a volume of 3,106,837 shares traded.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on ESI shares. William Blair set a $48.00 price target on Element Solutions in a research note on Friday, August 28th. The Goldman Sachs Group assumed coverage on shares of Element Solutions in a research note on Friday, September 11th. They issued a "buy" rating and a $44.00 target price for the company. Bank of America initiated coverage on shares of Element Solutions in a report on Tuesday, September 1st. They set a "buy" rating and a $42.00 target price on the stock. Weiss Ratings upgraded shares of Element Solutions from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday. Finally, Mizuho increased their price target on shares of Element Solutions from $42.00 to $44.00 and gave the company a "neutral" rating in a research note on Thursday, October 22nd. Three equities research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Buy" and a consensus price target of $46.36.

Element Solutions Stock Performance

The company has a market capitalization of $8.68 billion, a price-to-earnings ratio of 42.08, a PEG ratio of 1.20 and a beta of 1.26. The stock has a 50-day moving average price of $35.25 and a 200-day moving average price of $36.71. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.78 and a quick ratio of 2.06.

Element Solutions (NYSE:ESI - Get Free Report) last posted its earnings results on Wednesday, October 21st. The company reported $0.50 earnings per share for the quarter, topping analysts' consensus estimates of $0.48 by $0.02. Element Solutions had a return on equity of 15.45% and a net margin of 5.87%. The business had revenue of $995.30 million for the quarter, compared to analyst estimates of $964.23 million. During the same period in the previous year, the firm earned $0.41 EPS. The firm's revenue was up 51.7% compared to the same quarter last year. As a group, analysts forecast that Element Solutions Inc. will post 1.85 earnings per share for the current year.

Element Solutions Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st were given a $0.08 dividend. The ex-dividend date of this dividend was Tuesday, September 1st. This represents a $0.32 annualized dividend and a dividend yield of 0.9%. Element Solutions's dividend payout ratio is presently 37.65%.

Institutional Trading of Element Solutions

Several hedge funds and other institutional investors have recently modified their holdings of ESI. BlackRock Inc. acquired a new stake in shares of Element Solutions during the second quarter worth $1,317,663,000. Bank of New York Mellon Corp acquired a new position in shares of Element Solutions in the second quarter valued at about $110,892,000. Assenagon Asset Management S.A. bought a new position in Element Solutions during the third quarter worth about $82,230,000. Bank of America Corp DE bought a new position in Element Solutions during the second quarter worth about $47,689,000. Finally, Troluce Capital Advisors LLC acquired a new stake in Element Solutions in the 1st quarter worth about $27,667,000. Institutional investors own 92.32% of the company's stock.

Element Solutions Company Profile

Element Solutions Inc NYSE: ESI is a specialty chemicals company that develops and produces materials used in electronics manufacturing and a range of industrial applications. Its products are designed to support processes such as printed circuit board fabrication, semiconductor packaging, electronic assembly, metal finishing, and surface treatment.

Through its electronics-focused businesses, including MacDermid Alpha Solutions, the company supplies solder materials, electronic assembly chemicals, circuit board materials, and semiconductor packaging solutions.

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