Sensient Technologies (NYSE:SXT) Shares Gap Down - Here's Why

Key Points

• Sensient Technologies shares plunged, opening at $112 after closing at $131.53, and later trading near $116.43 on volume of about 153,704 shares.
• Analyst sentiment remains generally positive despite the selloff: the stock has a “Moderate Buy” consensus rating and an average price target of $140.67, with UBS raising its target to $157.
• The company exceeded quarterly earnings expectations with EPS of $1.13 versus $1.09 expected, while revenue rose 10.6% year over year to $455.84 million. Sensient also declared a quarterly dividend of $0.41, equivalent to a 1.4% annual yield.

Sensient Technologies Corporation (NYSE:SXT - Get Free Report)'s stock price gapped down prior to trading on Friday. The stock had previously closed at $131.53, but opened at $112.00. Sensient Technologies shares last traded at $116.4260, with a volume of 153,704 shares trading hands.

Analysts Set New Price Targets

Several analysts have issued reports on SXT shares. UBS Group boosted their price objective on Sensient Technologies from $155.00 to $157.00 and gave the stock a "buy" rating in a report on Wednesday, September 30th. Wall Street Zen upgraded shares of Sensient Technologies from a "hold" rating to a "buy" rating in a report 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. Weiss Ratings lowered shares of Sensient Technologies from a "buy (b+)" rating to a "buy (b)" rating in a report on Friday, October 23rd. Finally, Robert W. Baird boosted their price target on shares of Sensient Technologies from $125.00 to $140.00 and gave the company an "outperform" rating in a report on Monday, July 27th. Three research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $140.67.

Sensient Technologies Stock Performance

The firm has a 50 day moving average of $131.88 and a 200-day moving average of $113.51. The stock has a market capitalization of $4.95 billion, a PE ratio of 31.32 and a beta of 0.84. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.72 and a current ratio of 4.39.

Sensient Technologies (NYSE:SXT - Get Free Report) last released its earnings results on Friday, October 30th. The specialty chemicals company reported $1.13 earnings per share for the quarter, beating the consensus estimate of $1.09 by $0.04. The company had revenue of $455.84 million for the quarter, compared to analysts' expectations of $459.05 million. Sensient Technologies had a return on equity of 13.77% and a net margin of 9.27%. The business's revenue for the quarter was up 10.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.96 EPS. Research analysts forecast that Sensient Technologies Corporation will post 4.20 earnings per share for the current year.

Sensient Technologies Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Monday, November 9th will be given a $0.41 dividend. The ex-dividend date is Monday, November 9th. This represents a $1.64 dividend on an annualized basis and a yield of 1.4%. Sensient Technologies's dividend payout ratio is presently 44.20%.

Insider Activity

In other Sensient Technologies news, Director Mario Ferruzzi sold 1,200 shares of Sensient Technologies stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $129.48, for a total transaction of $155,376.00. Following the completion of 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 filing with the SEC, which is available at this hyperlink. 1.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On Sensient Technologies

A number of hedge funds have recently modified their holdings of the stock. Moody National Bank Trust Division boosted its stake in shares of Sensient Technologies by 0.8% during the 3rd quarter. Moody National Bank Trust Division now owns 12,555 shares of the specialty chemicals company's stock worth $1,641,000 after acquiring an additional 100 shares in the last quarter. Tower View Wealth Management LLC increased its holdings in shares of Sensient Technologies by 0.9% during the 3rd quarter. Tower View Wealth Management LLC now owns 17,902 shares of the specialty chemicals company's stock valued at $2,340,000 after acquiring an additional 158 shares during the last quarter. Vise Technologies Inc. raised its stake in shares of Sensient Technologies by 8.2% in the 3rd quarter. Vise Technologies Inc. now owns 2,387 shares of the specialty chemicals company's stock valued at $312,000 after acquiring an additional 180 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of Sensient Technologies in the 2nd quarter valued at approximately $26,000. Finally, Silvant Capital Management LLC bought a new position in shares of Sensient Technologies in the 2nd quarter valued at approximately $27,000. 90.86% of the stock is owned by institutional investors and hedge funds.

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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