Sensient Technologies (NYSE:SXT) Reaches New 12-Month High on Strong Earnings

Key Points

• Sensient Technologies reached a new 52-week high of $114.59 following a quarterly earnings announcement, reporting an EPS of $0.94, surpassing the consensus estimate of $0.88.
• The company declared a quarterly dividend of $0.41 per share, with a dividend yield of 1.44%, to be paid on September 2nd.
• Analysts have raised the target price for Sensient Technologies, with Robert W. Baird increasing it from $93.00 to $125.00 and giving an "outperform" rating.

Sensient Technologies Corporation (NYSE:SXT - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Saturday after the company announced better than expected quarterly earnings. The company traded as high as $114.59 and last traded at $113.54, with a volume of 990794 shares traded. The stock had previously closed at $110.00.

The specialty chemicals company reported $0.94 EPS for the quarter, beating analysts' consensus estimates of $0.88 by $0.06. The firm had revenue of $414.23 million for the quarter, compared to analyst estimates of $417.60 million. Sensient Technologies had a return on equity of 12.56% and a net margin of 8.56%. Sensient Technologies's revenue for the quarter was up 2.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.77 earnings per share.

Sensient Technologies Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 2nd. Stockholders of record on Monday, August 4th will be given a dividend of $0.41 per share. This represents a $1.64 dividend on an annualized basis and a dividend yield of 1.47%. The ex-dividend date of this dividend is Monday, August 4th. Sensient Technologies's dividend payout ratio (DPR) is presently 51.74%.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on SXT. CJS Securities assumed coverage on Sensient Technologies in a research note on Tuesday, June 10th. They set a "market perform" rating and a $95.00 target price for the company. Robert W. Baird upped their target price on Sensient Technologies from $93.00 to $125.00 and gave the company an "outperform" rating in a report on Thursday, July 3rd.

Insider Transactions at Sensient Technologies

In related news, Director Mario Ferruzzi sold 1,668 shares of the stock in a transaction dated Friday, May 9th. The stock was sold at an average price of $95.45, for a total transaction of $159,210.60. Following the transaction, the director owned 7,946 shares of the company's stock, valued at approximately $758,445.70. This represents a 17.35% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 1.20% of the company's stock.

Hedge Funds Weigh In On Sensient Technologies

Several hedge funds have recently bought and sold shares of SXT. Sentry Investment Management LLC acquired a new stake in shares of Sensient Technologies during the 2nd quarter worth about $363,000. Stanley Laman Group Ltd. purchased a new position in shares of Sensient Technologies in the 2nd quarter valued at approximately $263,000. Private Trust Co. NA purchased a new position in shares of Sensient Technologies in the 2nd quarter valued at approximately $29,000. New York State Teachers Retirement System boosted its stake in shares of Sensient Technologies by 0.4% in the second quarter. New York State Teachers Retirement System now owns 56,165 shares of the specialty chemicals company's stock valued at $5,533,000 after buying an additional 200 shares in the last quarter. Finally, Yousif Capital Management LLC boosted its stake in shares of Sensient Technologies by 1.6% in the second quarter. Yousif Capital Management LLC now owns 15,879 shares of the specialty chemicals company's stock valued at $1,564,000 after buying an additional 245 shares in the last quarter. Institutional investors and hedge funds own 90.86% of the company's stock.

Sensient Technologies Stock Performance

The stock has a market capitalization of $4.72 billion, a PE ratio of 35.10 and a beta of 0.56. The stock has a 50 day moving average of $101.23 and a two-hundred day moving average of $85.66. The company has a debt-to-equity ratio of 0.61, a current ratio of 4.25 and a quick ratio of 1.78.

Sensient Technologies Company Profile

Sensient Technologies Corporation, together with its subsidiaries, develops, manufactures, and markets colors, flavors, and other specialty ingredients in North America, Europe, Asia, Australia, South America, and Africa. The company offers flavor-delivery systems, and compounded and blended products; ingredient products, such as essential oils, natural and synthetic flavors, and natural extracts; and chili powder, paprika, and chili pepper, as well as dehydrated vegetables comprising parsley, celery, and spinach to the food, beverage, and personal care industries.