RPM International (NYSE:RPM) Shares Gap Up Following Strong Earnings

Key Points

• RPM International shares gapped up after the company reported stronger-than-expected quarterly earnings, opening at $107.00 versus the prior close of $101.53.
• The specialty chemicals maker posted EPS of $1.89, beating estimates of $1.83, while revenue of $2.23 billion also came in above consensus.
• RPM also declared a quarterly dividend of $0.54 per share, equal to an annualized yield of about 2.0%, with payment scheduled for July 31.

RPM International Inc. (NYSE:RPM - Get Free Report)'s share price gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $101.53, but opened at $107.00. RPM International shares last traded at $107.4910, with a volume of 355,478 shares.

The specialty chemicals company reported $1.89 earnings per share for the quarter, topping the consensus estimate of $1.83 by $0.06. RPM International had a return on equity of 22.55% and a net margin of 8.63%.The firm had revenue of $2.23 billion for the quarter, compared to the consensus estimate of $2.18 billion. During the same period in the previous year, the business earned $1.72 EPS.

RPM International Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Tuesday, July 14th will be paid a dividend of $0.54 per share. The ex-dividend date is Tuesday, July 14th. This represents a $2.16 dividend on an annualized basis and a dividend yield of 2.0%. RPM International's payout ratio is presently 41.62%.

Analysts Set New Price Targets

A number of analysts recently commented on the stock. Weiss Ratings cut shares of RPM International from a "hold (c+)" rating to a "hold (c)" rating in a research note on Wednesday, April 29th. Wall Street Zen lowered shares of RPM International from a "buy" rating to a "hold" rating in a research note on Saturday, July 4th. Morgan Stanley lifted their price objective on shares of RPM International from $118.00 to $121.00 and gave the stock an "equal weight" rating in a research note on Thursday, April 9th. BMO Capital Markets dropped their price objective on shares of RPM International from $148.00 to $143.00 and set an "outperform" rating on the stock in a report on Monday, July 6th. Finally, Citigroup upped their target price on RPM International from $125.00 to $128.00 and gave the company a "buy" rating in a research report on Friday, May 29th. Eleven analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $127.00.

Institutional Trading of RPM International

Hedge funds and other institutional investors have recently made changes to their positions in the business. Ares Financial Consulting LLC acquired a new position in RPM International during the fourth quarter valued at $37,000. Rothschild Investment LLC lifted its holdings in shares of RPM International by 2,387.0% in the 4th quarter. Rothschild Investment LLC now owns 572 shares of the specialty chemicals company's stock valued at $59,000 after buying an additional 549 shares during the period. Los Angeles Capital Management LLC purchased a new stake in shares of RPM International in the fourth quarter worth about $60,000. Resources Management Corp CT ADV boosted its stake in shares of RPM International by 21,566.7% in the fourth quarter. Resources Management Corp CT ADV now owns 650 shares of the specialty chemicals company's stock worth $68,000 after buying an additional 647 shares during the last quarter. Finally, Commonwealth Retirement Investments LLC acquired a new stake in RPM International during the fourth quarter worth about $69,000. Institutional investors and hedge funds own 80.95% of the company's stock.

RPM International Stock Performance

The company has a market capitalization of $13.75 billion, a PE ratio of 20.74, a PEG ratio of 2.31 and a beta of 1.04. The firm has a 50-day moving average of $105.14 and a two-hundred day moving average of $106.25. The company has a quick ratio of 1.44, a current ratio of 2.28 and a debt-to-equity ratio of 0.81.

About RPM International

RPM International Inc is a global holding company whose subsidiaries specialize in the manufacture and marketing of high-performance coatings, sealants, building materials, and specialty chemicals. Through its two principal operating segments—Performance Coatings and Industrial Coatings—RPM serves a diverse range of end markets, including construction, consumer products, industrial maintenance, and specialty applications.

The company's Performance Coatings segment offers a broad portfolio of architectural coatings, waterproofing systems, and specialty building products used by contractors, builders, and homeowners.

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