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

Key Points

• Quaker Houghton has a “Moderate Buy” consensus rating from six analysts, with four buys and two holds. The average 12-month price target is $187.67, above the stock’s reported $170.00 price.
• The specialty chemicals company beat quarterly expectations, reporting $2.19 EPS versus the $1.66 consensus and revenue of $532.55 million, up 10.2% year over year.
• Quaker Houghton authorized a $250 million share-buyback program and increased its quarterly dividend to $0.53 per share, equivalent to a 1.2% annual yield.

Shares of Quaker Houghton (NYSE:KWR - Get Free Report) have been given an average rating of "Moderate Buy" by the six research firms that are presently covering the firm, Marketbeat.com reports. Two analysts have rated the stock with a hold recommendation and four have issued a buy recommendation on the company. The average 12-month price objective among analysts that have issued a report on the stock in the last year is $187.6667.

A number of research analysts have recently weighed in on the company. Royal Bank Of Canada raised their price target on Quaker Houghton from $177.00 to $198.00 and gave the company an "outperform" rating in a research report on Monday. Seaport Research Partners upgraded shares of Quaker Houghton from a "neutral" rating to a "buy" rating and set a $175.00 price objective on the stock in a research report on Friday, April 17th. Weiss Ratings raised shares of Quaker Houghton from a "sell (d+)" rating to a "hold (c)" rating in a research note on Monday. Wall Street Zen upgraded shares of Quaker Houghton from a "hold" rating to a "buy" rating in a report on Saturday, August 1st. Finally, Truist Financial restated a "buy" rating and set a $190.00 target price (up from $172.00) on shares of Quaker Houghton in a research report on Monday, August 3rd.

Insider Buying and Selling

In other news, EVP Jeewat Bijlani sold 731 shares of the business's stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $145.77, for a total value of $106,557.87. Following the completion of the transaction, the executive vice president directly owned 6,748 shares of the company's stock, valued at $983,655.96. The trade was a 9.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director William H. Osborne sold 600 shares of the business's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $168.31, for a total value of $100,986.00. Following the completion of the transaction, the director directly owned 616 shares of the company's stock, valued at approximately $103,678.96. This trade represents a 49.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.00% of the stock is currently owned by corporate insiders.

Institutional Trading of Quaker Houghton

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Kohmann Bosshard Financial Services LLC purchased a new position in Quaker Houghton in the 4th quarter valued at about $27,000. Farther Finance Advisors LLC grew its holdings in shares of Quaker Houghton by 165.0% during the fourth quarter. Farther Finance Advisors LLC now owns 273 shares of the specialty chemicals company's stock worth $37,000 after buying an additional 170 shares in the last quarter. EverSource Wealth Advisors LLC grew its holdings in shares of Quaker Houghton by 284.8% during the second quarter. EverSource Wealth Advisors LLC now owns 304 shares of the specialty chemicals company's stock worth $34,000 after buying an additional 225 shares in the last quarter. Global Retirement Partners LLC raised its position in shares of Quaker Houghton by 556.9% in the fourth quarter. Global Retirement Partners LLC now owns 335 shares of the specialty chemicals company's stock valued at $46,000 after buying an additional 284 shares during the last quarter. Finally, First Horizon Corp raised its position in shares of Quaker Houghton by 123.3% in the fourth quarter. First Horizon Corp now owns 355 shares of the specialty chemicals company's stock valued at $49,000 after buying an additional 196 shares during the last quarter. Hedge funds and other institutional investors own 77.46% of the company's stock.

Quaker Houghton Stock Performance

KWR opened at $170.00 on Friday. Quaker Houghton has a 1-year low of $112.18 and a 1-year high of $183.01. The stock has a market cap of $2.93 billion, a P/E ratio of 30.30, a P/E/G ratio of 1.21 and a beta of 1.40. The stock's 50 day simple moving average is $152.25 and its 200 day simple moving average is $146.21. The company has a debt-to-equity ratio of 0.62, a current ratio of 2.46 and a quick ratio of 1.70.

Quaker Houghton (NYSE:KWR - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The specialty chemicals company reported $2.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.66 by $0.53. The firm had revenue of $532.55 million during the quarter, compared to analysts' expectations of $504.63 million. Quaker Houghton had a return on equity of 9.55% and a net margin of 4.94%.Quaker Houghton's revenue was up 10.2% on a year-over-year basis. During the same period in the previous year, the firm posted $1.71 earnings per share. As a group, equities analysts anticipate that Quaker Houghton will post 7.59 EPS for the current fiscal year.

Quaker Houghton declared that its Board of Directors has initiated a stock buyback program on Wednesday, May 13th that authorizes the company to buyback $250.00 million in shares. This buyback authorization authorizes the specialty chemicals company to purchase up to 10.1% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board of directors believes its stock is undervalued.

Quaker Houghton Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Friday, October 16th will be given a dividend of $0.53 per share. The ex-dividend date is Friday, October 16th. This represents a $2.12 annualized dividend and a dividend yield of 1.2%. This is an increase from Quaker Houghton's previous quarterly dividend of $0.51. Quaker Houghton's payout ratio is presently 36.19%.

About Quaker Houghton

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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