Quaker Houghton (NYSE:KWR) Share Price Passes Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Quaker Houghton shares rose above their 200-day moving average, trading as high as $160.73 and last changing hands near $160.20. The move came on heavy volume of 683,850 shares.
• Analysts remain mixed but generally constructive: the stock has a consensus “Moderate Buy” rating and an average price target of $168.00. Recent calls included upgrades from Seaport Research Partners and Zacks, while Wall Street Zen downgraded the stock to hold.
• The company reported better-than-expected revenue of $480.48 million in its latest quarter, though EPS of $1.63 missed estimates slightly. Quaker Houghton also announced a quarterly dividend and approved a $250 million share repurchase program.

Quaker Houghton (NYSE:KWR - Get Free Report) shares crossed above its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of $143.70 and traded as high as $160.73. Quaker Houghton shares last traded at $160.1950, with a volume of 683,850 shares trading hands.

Analysts Set New Price Targets

Several analysts have commented on the stock. Wall Street Zen downgraded shares of Quaker Houghton from a "buy" rating to a "hold" rating in a research report on Sunday, April 12th. Weiss Ratings upgraded shares of Quaker Houghton from a "sell (d)" rating to a "sell (d+)" rating in a report on Wednesday, May 6th. Zacks Research raised shares of Quaker Houghton from a "strong sell" rating to a "hold" rating in a research note on Thursday, May 21st. Royal Bank Of Canada upped their price objective on shares of Quaker Houghton from $151.00 to $157.00 and gave the stock an "outperform" rating in a report on Monday, May 4th. Finally, Seaport Research Partners raised shares of Quaker Houghton from a "neutral" rating to a "buy" rating and set a $175.00 target price on the stock in a research report on Friday, April 17th. Four equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Quaker Houghton currently has a consensus rating of "Moderate Buy" and a consensus target price of $168.00.

Quaker Houghton Stock Up 2.3%

The stock has a market cap of $2.78 billion, a P/E ratio of 572.15, a PEG ratio of 1.20 and a beta of 1.43. The company has a quick ratio of 1.72, a current ratio of 2.45 and a debt-to-equity ratio of 0.61. The business has a 50-day simple moving average of $143.02 and a 200-day simple moving average of $143.70.

Quaker Houghton (NYSE:KWR - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The specialty chemicals company reported $1.63 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 for the quarter, compared to analyst estimates of $463.70 million. During the same quarter last year, the business earned $1.58 EPS. The company's revenue for the quarter was up 8.5% on a year-over-year basis. Analysts expect that Quaker Houghton will post 7.16 EPS for the current year.

Quaker Houghton Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Friday, July 17th will be paid a $0.508 dividend. The ex-dividend date is Friday, July 17th. This represents a $2.03 dividend on an annualized basis and a yield of 1.3%. Quaker Houghton's dividend payout ratio (DPR) is presently 725.00%.

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

Insiders Place Their Bets

In other Quaker Houghton news, EVP Jeewat Bijlani sold 731 shares of the business's stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $145.77, for a total transaction of $106,557.87. Following the completion of the transaction, the executive vice president owned 6,748 shares of the company's stock, valued at $983,655.96. The trade was a 9.77% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 1.00% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Quaker Houghton

Several hedge funds have recently modified their holdings of the business. AQR Capital Management LLC raised its stake in Quaker Houghton by 114.3% during the 1st quarter. AQR Capital Management LLC now owns 23,139 shares of the specialty chemicals company's stock valued at $2,860,000 after purchasing an additional 12,341 shares during the last quarter. Integrated Wealth Concepts LLC increased its holdings in shares of Quaker Houghton by 7.1% during the 1st quarter. Integrated Wealth Concepts LLC now owns 1,650 shares of the specialty chemicals company's stock worth $204,000 after purchasing an additional 109 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Quaker Houghton by 4.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,211 shares of the specialty chemicals company's stock worth $1,015,000 after purchasing an additional 345 shares during the period. Goldman Sachs Group Inc. raised its position in shares of Quaker Houghton by 29.2% during the first quarter. Goldman Sachs Group Inc. now owns 95,751 shares of the specialty chemicals company's stock valued at $11,836,000 after buying an additional 21,665 shares during the last quarter. Finally, Intech Investment Management LLC raised its position in shares of Quaker Houghton by 44.4% during the first quarter. Intech Investment Management LLC now owns 9,873 shares of the specialty chemicals company's stock valued at $1,220,000 after buying an additional 3,034 shares during the last quarter. 77.46% of the stock is owned by institutional investors.

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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