Quaker Houghton (NYSE:KWR) Upgraded by Truist Financial to "Strong-Buy" Rating

Key Points

• Truist Financial upgraded Quaker Houghton (NYSE:KWR) to a Strong-Buy rating, adding to a broadly positive analyst backdrop for the stock.
• The company’s latest quarterly results showed EPS of $1.63, missing estimates by a small margin, while revenue of $480.48 million beat expectations and rose 8.5% year over year.
• Quaker Houghton’s board approved a $250 million share repurchase program, authorizing buybacks of up to 10.1% of outstanding shares, which may signal management sees the stock as undervalued.

Quaker Houghton (NYSE:KWR - Get Free Report) was upgraded by analysts at Truist Financial to a "strong-buy" rating in a note issued to investors on Monday,Zacks.com reports.

Several other research firms have also recently commented on KWR. Weiss Ratings upgraded Quaker Houghton from a "sell (d)" rating to a "sell (d+)" rating in a research note on Wednesday, May 6th. Jefferies Financial Group cut their target price 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. Royal Bank Of Canada boosted their target price on Quaker Houghton from $151.00 to $157.00 and gave the company an "outperform" rating in a research note on Monday, May 4th. Wall Street Zen cut Quaker Houghton from a "buy" rating to a "hold" rating in a research note on Sunday, April 12th. Finally, Seaport Research Partners upgraded Quaker Houghton from a "neutral" rating to a "buy" rating and set a $175.00 target price on the stock in a research note on Friday, April 17th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $168.00.

Quaker Houghton Price Performance

Shares of KWR stock opened at $143.91 on Monday. The stock has a 50-day moving average price of $136.51 and a 200 day moving average price of $142.42. 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 firm has a market cap of $2.50 billion, a price-to-earnings ratio of 513.97, a PEG ratio of 1.07 and a beta of 1.43. Quaker Houghton has a 12 month low of $111.32 and a 12 month high of $183.01.

Quaker Houghton (NYSE:KWR - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The specialty chemicals company reported $1.63 EPS for the quarter, missing analysts' consensus estimates of $1.66 by ($0.03). The firm had revenue of $480.48 million during the quarter, compared to analyst estimates of $463.70 million. Quaker Houghton had a return on equity of 9.03% and a net margin of 0.22%.Quaker Houghton's revenue for the quarter was up 8.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.58 earnings per share. Research analysts expect that Quaker Houghton will post 7.19 EPS for the current year.

Quaker Houghton announced that its Board of Directors has initiated a share repurchase program on Wednesday, May 13th that authorizes the company to buyback $250.00 million in outstanding shares. This buyback authorization authorizes the specialty chemicals company to reacquire up to 10.1% of its stock through open market purchases. Stock buyback programs are often an indication that the company's leadership believes its stock is undervalued.

Insider Activity

In other news, EVP Jeewat Bijlani sold 731 shares of the company's stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $145.77, for a total transaction of $106,557.87. Following the sale, the executive vice president owned 6,748 shares in the company, valued at $983,655.96. This represents a 9.77% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. 1.00% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Quaker Houghton

A number of institutional investors and hedge funds have recently made changes to their positions in KWR. Kohmann Bosshard Financial Services LLC bought a new stake in shares of Quaker Houghton during the 4th quarter worth approximately $27,000. Aster Capital Management DIFC Ltd acquired a new position in shares of Quaker Houghton during the 3rd quarter worth approximately $28,000. EverSource Wealth Advisors LLC increased its holdings in shares of Quaker Houghton by 284.8% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 304 shares of the specialty chemicals company's stock worth $34,000 after acquiring an additional 225 shares during the last quarter. Farther Finance Advisors LLC increased its holdings in shares of Quaker Houghton by 165.0% during the 4th quarter. Farther Finance Advisors LLC now owns 273 shares of the specialty chemicals company's stock worth $37,000 after acquiring an additional 170 shares during the last quarter. Finally, Smartleaf Asset Management LLC increased its holdings in shares of Quaker Houghton by 87.1% during the 3rd quarter. Smartleaf Asset Management LLC now owns 348 shares of the specialty chemicals company's stock worth $46,000 after acquiring an additional 162 shares during the last quarter. Institutional investors own 77.46% of the company's stock.

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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