UL Solutions Inc. (NYSE:ULS) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• UL Solutions has a consensus analyst rating of “Moderate Buy” from 11 brokerages, with an average 12-month price target of $101.54.
• The company beat quarterly expectations, reporting EPS of $0.50 versus $0.42 expected and revenue of $758 million, up 7.5% year over year.
• UL Solutions also raised its quarterly dividend to $0.145 per share, while recent insider sales and mixed analyst views suggest some caution despite the positive outlook.

UL Solutions Inc. (NYSE:ULS - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the eleven brokerages that are presently covering the firm, Marketbeat Ratings reports. Five research analysts have rated the stock with a hold recommendation, five have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month price objective among analysts that have issued a report on the stock in the last year is $101.54.

ULS has been the subject of several research analyst reports. The Goldman Sachs Group reiterated a "neutral" rating on shares of UL Solutions in a research report on Wednesday, May 6th. Robert W. Baird cut their target price on UL Solutions from $97.00 to $96.00 and set an "outperform" rating for the company in a research report on Friday, February 20th. Weiss Ratings upgraded UL Solutions from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, May 8th. JPMorgan Chase & Co. increased their target price on UL Solutions from $88.00 to $108.00 and gave the stock a "neutral" rating in a research report on Thursday, May 7th. Finally, Wells Fargo & Company increased their target price on UL Solutions from $102.00 to $120.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th.

UL Solutions Stock Down 1.6%

ULS stock opened at $98.95 on Friday. UL Solutions has a fifty-two week low of $61.64 and a fifty-two week high of $107.54. The business's 50-day moving average is $88.55 and its two-hundred day moving average is $82.66. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.16 and a current ratio of 1.16. The company has a market cap of $19.94 billion, a price-to-earnings ratio of 57.87, a P/E/G ratio of 3.85 and a beta of 0.59.

UL Solutions (NYSE:ULS - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The company reported $0.50 EPS for the quarter, topping the consensus estimate of $0.42 by $0.08. UL Solutions had a return on equity of 30.99% and a net margin of 11.24%.The firm had revenue of $758.00 million for the quarter, compared to the consensus estimate of $748.50 million. During the same quarter last year, the company earned $0.37 earnings per share. The business's revenue for the quarter was up 7.5% compared to the same quarter last year. As a group, analysts forecast that UL Solutions will post 2.1 earnings per share for the current year.

UL Solutions Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, March 12th. Investors of record on Monday, March 2nd were given a dividend of $0.145 per share. This is an increase from UL Solutions's previous quarterly dividend of $0.13. This represents a $0.58 annualized dividend and a dividend yield of 0.6%. The ex-dividend date was Monday, March 2nd. UL Solutions's dividend payout ratio (DPR) is 33.92%.

Insider Buying and Selling

In other UL Solutions news, EVP Alberto Uggetti sold 6,100 shares of the firm's stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $100.00, for a total transaction of $610,000.00. Following the completion of the transaction, the executive vice president owned 10,307 shares in the company, valued at $1,030,700. This trade represents a 37.18% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Gitte Schjotz sold 8,000 shares of the firm's stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $103.96, for a total value of $831,680.00. Following the transaction, the insider owned 81,221 shares of the company's stock, valued at $8,443,735.16. This represents a 8.97% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 39,100 shares of company stock worth $3,655,055. 1.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On UL Solutions

Institutional investors have recently added to or reduced their stakes in the company. Parallel Advisors LLC grew its holdings in UL Solutions by 349.3% during the 1st quarter. Parallel Advisors LLC now owns 301 shares of the company's stock valued at $26,000 after buying an additional 234 shares in the last quarter. Assetmark Inc. purchased a new position in UL Solutions during the 3rd quarter valued at approximately $40,000. Northwestern Mutual Wealth Management Co. grew its holdings in UL Solutions by 3,070.0% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 634 shares of the company's stock valued at $46,000 after buying an additional 614 shares in the last quarter. PNC Financial Services Group Inc. grew its holdings in UL Solutions by 18.2% during the 3rd quarter. PNC Financial Services Group Inc. now owns 864 shares of the company's stock valued at $61,000 after buying an additional 133 shares in the last quarter. Finally, Rhumbline Advisers purchased a new position in UL Solutions during the 1st quarter valued at approximately $49,000.

UL Solutions Company Profile

UL Solutions NYSE: ULS is a global safety science company that provides testing, inspection, certification, advisory and digital solutions designed to help organizations manage risk, ensure regulatory compliance and drive innovation. With roots dating back to 1894 when it was founded as Underwriters' Electrical Bureau, the company rebranded as UL Solutions following its initial public offering in 2022. Headquartered in Northbrook, Illinois, UL Solutions operates independently to serve a broad range of industries with an emphasis on product safety, performance and sustainability.

The company's core services include standards development, product testing and certification for sectors such as building products, consumer electronics, automotive, life sciences, energy and industrial equipment.

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