UL Solutions (NYSE:ULS) Lowered to Hold Rating by Zacks Research

Key Points

• Zacks Research downgraded UL Solutions from strong-buy to hold, adding to a mixed analyst picture that now stands at a consensus Hold with a $101.54 average price target.
• Despite the downgrade, UL Solutions recently beat quarterly earnings expectations, posting $0.50 EPS versus the $0.42 estimate and revenue of $758 million, up 7.5% year over year.
• The stock was down 0.6% on Monday at $88.78, while insider selling and recent institutional buying highlighted shifting sentiment around the shares.

UL Solutions (NYSE:ULS - Get Free Report) was downgraded by investment analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued on Monday,Zacks.com reports.

A number of other equities analysts have also issued reports on ULS. UBS Group raised their target price on shares of UL Solutions from $90.00 to $110.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 6th. Wall Street Zen upgraded shares of UL Solutions from a "hold" rating to a "buy" rating in a research note on Saturday, May 16th. The Goldman Sachs Group reissued a "neutral" rating on shares of UL Solutions in a research report on Wednesday, May 6th. Weiss Ratings raised shares of UL Solutions from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, May 8th. Finally, Telsey Advisory Group set a $100.00 target price on shares of UL Solutions in a report on Wednesday, May 6th. Five analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat.com, UL Solutions has a consensus rating of "Hold" and a consensus price target of $101.54.

UL Solutions Stock Down 0.6%

Shares of NYSE:ULS opened at $88.78 on Monday. The firm has a 50 day simple moving average of $97.14 and a 200-day simple moving average of $86.29. UL Solutions has a twelve month low of $61.64 and a twelve month high of $107.54. The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 0.27. The company has a market capitalization of $17.89 billion, a PE ratio of 51.92, a P/E/G ratio of 3.47 and a beta of 0.63.

UL Solutions (NYSE:ULS - Get Free Report) last announced its quarterly earnings results 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 net margin of 11.24% and a return on equity of 30.99%. The firm had revenue of $758.00 million for the quarter, compared to analyst estimates of $748.50 million. During the same period last year, the business earned $0.37 EPS. UL Solutions's revenue for the quarter was up 7.5% compared to the same quarter last year. On average, equities analysts predict that UL Solutions will post 2.1 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Gitte Schjotz sold 9,865 shares of the business's stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $96.98, for a total transaction of $956,707.70. Following the transaction, the insider directly owned 59,341 shares in the company, valued at $5,754,890.18. The trade was a 14.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Alberto Uggetti sold 6,100 shares of the firm's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $100.00, for a total transaction of $610,000.00. Following the completion of the sale, the executive vice president owned 10,307 shares of the company's stock, valued at approximately $1,030,700. The trade was a 37.18% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 65,705 shares of company stock valued at $6,460,300. Corporate insiders own 1.20% of the company's stock.

Institutional Trading of UL Solutions

Several hedge funds have recently modified their holdings of ULS. Royal Bank of Canada lifted its holdings in UL Solutions by 119.5% in the first quarter. Royal Bank of Canada now owns 143,431 shares of the company's stock valued at $8,090,000 after acquiring an additional 78,081 shares during the period. Goldman Sachs Group Inc. lifted its stake in shares of UL Solutions by 104.3% in the first quarter. Goldman Sachs Group Inc. now owns 460,160 shares of the company's stock valued at $25,953,000 after purchasing an additional 234,913 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in UL Solutions by 11.9% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 123,771 shares of the company's stock worth $6,981,000 after buying an additional 13,205 shares in the last quarter. Rhumbline Advisers purchased a new stake in UL Solutions during the first quarter worth about $49,000. Finally, Creative Planning acquired a new position in UL Solutions during the second quarter worth about $208,000.

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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