Quaker Houghton (NYSE:KWR) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Quaker Houghton has a consensus analyst rating of “Moderate Buy” from six firms, with an average 12-month price target of $168.
• The company reported quarterly EPS of $1.63, slightly below estimates, while revenue came in at $480.48 million, above expectations and up 8.5% year over year.
• Quaker Houghton’s board authorized a $250 million share buyback and also announced a quarterly dividend of $0.508 per share, payable July 31.

Quaker Houghton (NYSE:KWR - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the six ratings firms that are covering the stock, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating and four have given a buy rating to the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is $168.00.

A number of equities analysts recently issued reports on the company. Truist Financial started coverage on Quaker Houghton in a report on Monday, June 8th. They issued a "buy" rating and a $172.00 target price on the stock. Zacks Research raised Quaker Houghton from a "strong sell" rating to a "hold" rating in a report on Thursday, May 21st. Royal Bank Of Canada increased their price target on Quaker Houghton from $151.00 to $157.00 and gave the company an "outperform" rating in a research report on Monday, May 4th. Jefferies Financial Group dropped their price target on Quaker Houghton from $203.00 to $175.00 and set a "buy" rating on the stock in a research note on Monday, April 6th. Finally, Weiss Ratings upgraded Quaker Houghton from a "sell (d)" rating to a "sell (d+)" rating in a report on Wednesday, May 6th.

Insider Activity at Quaker Houghton

In related news, EVP Jeewat Bijlani sold 731 shares of the company's stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $145.77, for a total value of $106,557.87. Following the completion of the sale, the executive vice president owned 6,748 shares in the company, valued at approximately $983,655.96. This represents a 9.77% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 1.00% of the company's stock.

Hedge Funds Weigh In On Quaker Houghton

Several institutional investors and hedge funds have recently added to or reduced their stakes in KWR. Northwestern Mutual Wealth Management Co. boosted its position in shares of Quaker Houghton by 67,340.0% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 16,860 shares of the specialty chemicals company's stock worth $2,315,000 after buying an additional 16,835 shares during the period. Deprince Race & Zollo Inc. grew its holdings in shares of Quaker Houghton by 9.7% during the fourth quarter. Deprince Race & Zollo Inc. now owns 278,576 shares of the specialty chemicals company's stock valued at $38,251,000 after buying an additional 24,573 shares in the last quarter. GW&K Investment Management LLC raised its position in Quaker Houghton by 42.3% during the fourth quarter. GW&K Investment Management LLC now owns 406,329 shares of the specialty chemicals company's stock valued at $55,793,000 after buying an additional 120,772 shares during the period. Dean Capital Management lifted its stake in Quaker Houghton by 163.4% in the 3rd quarter. Dean Capital Management now owns 31,349 shares of the specialty chemicals company's stock worth $4,130,000 after acquiring an additional 19,446 shares in the last quarter. Finally, Royce & Associates LP lifted its stake in Quaker Houghton by 19.2% in the 4th quarter. Royce & Associates LP now owns 755,740 shares of the specialty chemicals company's stock worth $103,771,000 after acquiring an additional 121,854 shares in the last quarter. 77.46% of the stock is currently owned by hedge funds and other institutional investors.

Quaker Houghton Trading Down 0.1%

Shares of NYSE:KWR opened at $147.97 on Tuesday. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.72 and a current ratio of 2.45. The stock has a market capitalization of $2.57 billion, a price-to-earnings ratio of 528.47, a PEG ratio of 1.13 and a beta of 1.40. Quaker Houghton has a 1-year low of $111.42 and a 1-year high of $183.01. The company has a 50 day moving average price of $146.63 and a 200 day moving average price of $144.87.

Quaker Houghton (NYSE:KWR - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The specialty chemicals company reported $1.63 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.66 by ($0.03). Quaker Houghton had a net margin of 0.22% and a return on equity of 9.03%. The company had revenue of $480.48 million during the quarter, compared to the consensus estimate of $463.70 million. During the same period in the prior year, the company posted $1.58 EPS. Quaker Houghton's quarterly revenue was up 8.5% on a year-over-year basis. On average, research analysts anticipate that Quaker Houghton will post 7.16 EPS for the current fiscal year.

Quaker Houghton announced that its board has initiated a share buyback plan on Wednesday, May 13th that permits the company to buyback $250.00 million in outstanding shares. This buyback authorization permits the specialty chemicals company to reacquire up to 10.1% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

Quaker Houghton Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Friday, July 17th will be given a $0.508 dividend. This represents a $2.03 annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend is Friday, July 17th. Quaker Houghton's dividend payout ratio (DPR) is 725.00%.

Quaker Houghton Company Profile

Quaker Houghton is a global provider of process fluids, chemical specialties and sustainable solutions for industrial applications. The company develops and supplies metalworking fluids, coatings, and corrosion inhibitors, as well as heat transfer, lubrication and additive products designed to improve productivity and extend equipment life. Its portfolio addresses a range of end markets including automotive, aerospace, defense, energy, mining, agriculture and heavy industry.

The company traces its roots back to the founding of Quaker Chemical Corporation in 1918 and Houghton International in 1865.

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