UL Solutions (NYSE:ULS) Shares Down 7.5% - What's Next?

Key Points

• UL Solutions Inc. shares fell by 7.5% to $67.57, a significant decrease from its previous closing price of $73.04.
• Despite the drop, several analysts, including Raymond James and UBS Group, raised their price targets for the stock, indicating a generally positive outlook on its performance.
• UL Solutions reported earnings of $0.52 per share, exceeding expectations, while its revenue increased 6.3% year-over-year to $776 million.

UL Solutions Inc. (NYSE:ULS - Get Free Report)'s stock price traded down 7.5% during mid-day trading on Tuesday . The company traded as low as $69.60 and last traded at $67.57. 68,410 shares traded hands during mid-day trading, a decline of 91% from the average session volume of 766,648 shares. The stock had previously closed at $73.04.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on ULS shares. Wells Fargo & Company lifted their price objective on shares of UL Solutions from $65.00 to $77.00 and gave the company an "overweight" rating in a research report on Wednesday, May 7th. Raymond James Financial increased their price target on shares of UL Solutions from $60.00 to $72.00 and gave the stock an "outperform" rating in a report on Wednesday, May 7th. Citigroup reiterated a "neutral" rating and set a $71.00 target price (up previously from $60.50) on shares of UL Solutions in a research report on Wednesday, May 14th. UBS Group decreased their price target on UL Solutions from $72.00 to $70.00 and set a "neutral" rating on the stock in a research note on Wednesday. Finally, The Goldman Sachs Group raised their target price on UL Solutions from $57.00 to $63.00 and gave the company a "neutral" rating in a report on Wednesday, May 7th. Four equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the company's stock. Based on data from MarketBeat.com, UL Solutions currently has a consensus rating of "Hold" and a consensus price target of $70.86.

UL Solutions Stock Down 0.3%

The company has a market cap of $13.09 billion, a PE ratio of 40.29 and a beta of 1.00. The firm has a 50-day simple moving average of $70.93 and a two-hundred day simple moving average of $62.16. The company has a debt-to-equity ratio of 0.66, a current ratio of 1.24 and a quick ratio of 1.24.

UL Solutions (NYSE:ULS - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported $0.52 earnings per share for the quarter, beating the consensus estimate of $0.47 by $0.05. UL Solutions had a net margin of 11.08% and a return on equity of 39.09%. The firm had revenue of $776.00 million during the quarter, compared to the consensus estimate of $771.55 million. During the same quarter in the previous year, the company posted $0.44 EPS. The firm's revenue for the quarter was up 6.3% on a year-over-year basis. Research analysts anticipate that UL Solutions Inc. will post 1.69 earnings per share for the current fiscal year.

UL Solutions Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, June 9th. Shareholders of record on Friday, May 30th were paid a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend was Friday, May 30th. UL Solutions's dividend payout ratio is currently 32.10%.

Institutional Investors Weigh In On UL Solutions

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Elequin Capital LP purchased a new stake in UL Solutions in the 1st quarter valued at about $31,000. Quarry LP acquired a new stake in shares of UL Solutions in the fourth quarter worth approximately $32,000. Parkside Financial Bank & Trust grew its holdings in UL Solutions by 48.4% in the second quarter. Parkside Financial Bank & Trust now owns 524 shares of the company's stock valued at $38,000 after purchasing an additional 171 shares during the period. Rhumbline Advisers acquired a new position in UL Solutions during the first quarter worth approximately $49,000. Finally, Amica Mutual Insurance Co. acquired a new position in shares of UL Solutions in the 2nd quarter valued at $72,000.

About UL Solutions

UL Solutions Inc provides safety science services worldwide. It operates through three segments: Industrial, Consumer, and Software and Advisory. The Industrial segment provides testing, inspection, and certification services across various end markets, including energy, industrial automation, engineered materials, and built environment, as well as stakeholders, such as manufacturers, building owners, end users, and regulators.