UL Solutions (NYSE:ULS) Trading Down 8.1% - Here's What Happened

Key Points

• UL Solutions shares fell 8.1% on Monday, trading as low as $91.90 after closing at $96.99, with trading volume well below average.
• Despite the pullback, Wall Street sentiment remains constructive: analysts have a consensus rating of Moderate Buy and an average price target of $101.54, with several firms recently raising targets or upgrading the stock.
• The company’s latest quarterly results were solid, beating earnings and revenue estimates, and UL Solutions also paid a quarterly dividend of $0.145 per share for a modest 0.6% annualized yield.

UL Solutions Inc. (NYSE:ULS - Get Free Report)'s stock price was down 8.1% during trading on Monday . The company traded as low as $91.90 and last traded at $89.1380. Approximately 395,474 shares changed hands during mid-day trading, a decline of 58% from the average session volume of 941,357 shares. The stock had previously closed at $96.99.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on ULS shares. Wells Fargo & Company upped their price objective on shares of UL Solutions from $102.00 to $120.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Weiss Ratings raised UL Solutions from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, May 8th. Telsey Advisory Group set a $100.00 price target on UL Solutions in a research note on Wednesday, May 6th. Zacks Research upgraded UL Solutions from a "hold" rating to a "strong-buy" rating in a report on Tuesday, April 14th. Finally, UBS Group upped their target price on UL Solutions from $90.00 to $110.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, UL Solutions currently has an average rating of "Moderate Buy" and a consensus target price of $101.54.

UL Solutions Stock Down 7.1%

The company has a market cap of $18.15 billion, a price-to-earnings ratio of 53.00, a price-to-earnings-growth ratio of 3.77 and a beta of 0.63. 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 stock's fifty day moving average is $97.18 and its two-hundred day moving average is $86.13.

UL Solutions (NYSE:ULS - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The company reported $0.50 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.42 by $0.08. The business had revenue of $758.00 million during the quarter, compared to the consensus estimate of $748.50 million. UL Solutions had a return on equity of 30.99% and a net margin of 11.24%.The company's quarterly revenue was up 7.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.37 EPS. Sell-side analysts predict that UL Solutions Inc. will post 2.1 earnings per share for the current fiscal year.

UL Solutions Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, June 8th. Investors of record on Friday, May 29th were issued a dividend of $0.145 per share. The ex-dividend date was Friday, May 29th. This represents a $0.58 annualized dividend and a yield of 0.6%. UL Solutions's dividend payout ratio is 33.92%.

Insiders Place Their Bets

In other UL Solutions news, EVP Alberto Uggetti sold 6,100 shares of the firm's stock in a transaction 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 transaction, the executive vice president directly owned 10,307 shares in the company, valued at approximately $1,030,700. This trade represents a 37.18% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Gitte Schjotz sold 9,865 shares of the company's stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $96.98, for a total transaction of $956,707.70. Following the completion of the sale, the insider owned 59,341 shares of the company's stock, valued at approximately $5,754,890.18. The trade was a 14.25% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 65,705 shares of company stock worth $6,460,300 in the last three months. 1.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On UL Solutions

Institutional investors have recently modified their holdings of the business. Allspring Global Investments Holdings LLC raised its stake in shares of UL Solutions by 12.1% during the 4th quarter. Allspring Global Investments Holdings LLC now owns 1,550,913 shares of the company's stock worth $125,484,000 after purchasing an additional 167,564 shares during the period. Jefferies Financial Group Inc. grew its position in UL Solutions by 543.1% during the fourth quarter. Jefferies Financial Group Inc. now owns 192,915 shares of the company's stock valued at $15,213,000 after buying an additional 162,915 shares during the period. Legal & General Group Plc increased its holdings in UL Solutions by 78.6% during the fourth quarter. Legal & General Group Plc now owns 103,331 shares of the company's stock worth $8,149,000 after buying an additional 45,467 shares during the last quarter. Thrivent Financial for Lutherans increased its holdings in UL Solutions by 9,024.5% during the fourth quarter. Thrivent Financial for Lutherans now owns 337,881 shares of the company's stock worth $26,645,000 after buying an additional 334,178 shares during the last quarter. Finally, Hussman Strategic Advisors Inc. bought a new stake in UL Solutions in the fourth quarter worth about $2,484,000.

About UL Solutions

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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