RPM International (NYSE:RPM) Shares Gap Up on Earnings Beat

Key Points

• Shares jumped premarket after an earnings beat: RPM reported $0.57 EPS vs. $0.35 expected and $1.61B revenue (up 8.9% YoY), prompting a gap from a $96.71 close to a $110.60 open.
• Quarterly dividend announced: RPM declared $0.54 per share payable Apr 30 (record Apr 16), equal to $2.16 annually and roughly a 2.0% yield with a ~41.6% payout ratio.
• Analysts hold a consensus "Moderate Buy" with a $126.33 target, and institutional investors own about 80.95% of the stock, signaling strong institutional interest.

RPM International Inc. (NYSE:RPM - Get Free Report) shares gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $96.71, but opened at $110.60. RPM International shares last traded at $108.1250, with a volume of 370,925 shares trading hands.

The specialty chemicals company reported $0.57 earnings per share for the quarter, beating analysts' consensus estimates of $0.35 by $0.22. RPM International had a net margin of 8.79% and a return on equity of 22.49%. The company had revenue of $1.61 billion during the quarter, compared to analyst estimates of $1.55 billion. During the same quarter last year, the business posted $0.35 EPS. The firm's revenue for the quarter was up 8.9% on a year-over-year basis.

RPM International Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Investors of record on Thursday, April 16th will be paid a dividend of $0.54 per share. This represents a $2.16 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date is Thursday, April 16th. RPM International's dividend payout ratio is 41.62%.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the company. Citigroup decreased their price objective on RPM International from $136.00 to $127.00 and set a "buy" rating for the company in a research note on Thursday, December 18th. Robert W. Baird upgraded RPM International from a "neutral" rating to an "outperform" rating and set a $125.00 price objective for the company in a research note on Wednesday, March 4th. KeyCorp restated a "sector weight" rating on shares of RPM International in a research note on Friday, January 9th. BMO Capital Markets reduced their price objective on RPM International from $152.00 to $149.00 and set an "outperform" rating for the company in a research note on Thursday, January 8th. Finally, Mizuho dropped their target price on RPM International from $120.00 to $111.00 and set an "outperform" rating on the stock in a report on Monday, March 23rd. Eleven analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $126.33.

Insider Buying and Selling

In other RPM International news, VP Timothy R. Kinser sold 3,441 shares of RPM International stock in a transaction on Wednesday, January 21st. The stock was sold at an average price of $110.31, for a total value of $379,576.71. Following the sale, the vice president owned 21,248 shares in the company, valued at $2,343,866.88. The trade was a 13.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 1.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On RPM International

Institutional investors have recently modified their holdings of the company. PFA Pension Forsikringsaktieselskab acquired a new position in RPM International during the 4th quarter worth $54,307,000. Life Cycle Investment Partners Ltd acquired a new position in RPM International during the 4th quarter worth $16,175,000. Danske Bank A S acquired a new position in RPM International during the 3rd quarter worth $17,362,000. River Road Asset Management LLC acquired a new position in RPM International during the 4th quarter worth $6,658,000. Finally, California State Teachers Retirement System grew its stake in RPM International by 21.7% during the 2nd quarter. California State Teachers Retirement System now owns 355,934 shares of the specialty chemicals company's stock worth $39,096,000 after purchasing an additional 63,532 shares in the last quarter. 80.95% of the stock is owned by institutional investors and hedge funds.

RPM International Price Performance

The company has a 50 day moving average of $106.93 and a 200 day moving average of $108.32. The stock has a market capitalization of $13.91 billion, a price-to-earnings ratio of 20.94, a PEG ratio of 2.38 and a beta of 1.10. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.45 and a current ratio of 2.22.

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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