UL Solutions (NYSE:ULS) Shares Down 8.1% on Analyst Downgrade

UL Solutions Inc. (NYSE:ULS)’s share price dropped 8.1% during mid-day trading on Monday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $91.90 and last traded at $89.1380. Approximately 395,474 shares traded hands during trading, a decline of 58% from the average daily volume of 941,357 shares. The stock had previously closed at $96.99.

Several other equities research analysts also recently weighed in on the stock. Wells Fargo & Company increased their target price on shares of UL Solutions from $102.00 to $120.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. UBS Group boosted their price target on UL Solutions from $90.00 to $110.00 and gave the company a “neutral” rating in a research report on Wednesday, May 6th. The Goldman Sachs Group reaffirmed a “neutral” rating on shares of UL Solutions in a research note 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. Finally, JPMorgan Chase & Co. lifted their target price on UL Solutions from $88.00 to $108.00 and gave the company a “neutral” rating in a research note on Thursday, May 7th. Five research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat, UL Solutions presently has a consensus rating of “Hold” and a consensus target price of $101.54.

Insider Buying and Selling

In other UL Solutions news, EVP Alberto Uggetti sold 6,100 shares of the business’s stock in a transaction on Monday, May 11th. The shares were sold at an average price of $100.00, for a total transaction of $610,000.00. Following the sale, the executive vice president directly owned 10,307 shares in the company, valued at approximately $1,030,700. The trade was a 37.18% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Jennifer F. Scanlon sold 12,500 shares of the stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $99.22, for a total transaction of $1,240,250.00. Following the completion of the transaction, the chief executive officer owned 164,224 shares of the company’s stock, valued at $16,294,305.28. This represents a 7.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 65,705 shares of company stock valued at $6,460,300 in the last quarter. Corporate insiders own 1.20% of the company’s stock.

Hedge Funds Weigh In On UL Solutions

Several hedge funds have recently bought and sold shares of ULS. Parallel Advisors LLC boosted its position in UL Solutions by 349.3% during the first quarter. Parallel Advisors LLC now owns 301 shares of the company’s stock worth $26,000 after purchasing an additional 234 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its holdings in UL Solutions by 3,070.0% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 634 shares of the company’s stock valued at $46,000 after purchasing an additional 614 shares during the last quarter. GAMMA Investing LLC increased its position in shares of UL Solutions by 42.4% in the second quarter. GAMMA Investing LLC now owns 823 shares of the company’s stock valued at $84,000 after buying an additional 245 shares in the last quarter. Rhumbline Advisers acquired a new position in shares of UL Solutions during the 1st quarter worth $49,000. Finally, CIBC Private Wealth Group LLC raised its stake in shares of UL Solutions by 112.7% during the 4th quarter. CIBC Private Wealth Group LLC now owns 904 shares of the company’s stock worth $71,000 after buying an additional 479 shares during the last quarter.

UL Solutions Stock Down 1.4%

The firm has a market capitalization of $17.56 billion, a PE ratio of 50.95, a price-to-earnings-growth ratio of 3.47 and a beta of 0.63. The firm’s 50-day moving average is $97.14 and its 200 day moving average is $86.29. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.16 and a current ratio of 1.16.

UL Solutions (NYSE:ULS) last announced its earnings results on Tuesday, May 5th. The company reported $0.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.42 by $0.08. The company had revenue of $758.00 million during the quarter, compared to analysts’ expectations of $748.50 million. UL Solutions had a net margin of 11.24% and a return on equity of 30.99%. The firm’s quarterly revenue was up 7.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.37 earnings per share. As a group, research analysts forecast that UL Solutions Inc. will post 2.1 earnings per share for the current fiscal year.

UL Solutions Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, June 8th. Investors of record on Friday, May 29th were paid a $0.145 dividend. The ex-dividend date of this dividend was Friday, May 29th. This represents a $0.58 dividend on an annualized basis and a yield of 0.7%. UL Solutions’s dividend payout ratio is presently 33.92%.

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.