Quaker Houghton (NYSE:KWR) Trading Up 3.9% – Here’s Why

Shares of Quaker Houghton (NYSE:KWR) were up 3.9% during mid-day trading on Friday . The stock traded as high as $171.17 and last traded at $170.77. 17,633 shares changed hands during trading, a decline of 89% from the average session volume of 161,154 shares. The stock had previously closed at $164.31.

Wall Street Analysts Forecast Growth

A number of research firms have commented on KWR. Deutsche Bank Aktiengesellschaft lifted their price objective on shares of Quaker Houghton from $165.00 to $185.00 and gave the stock a “buy” rating in a report on Tuesday. Truist Financial restated a “buy” rating and issued a $190.00 price target (up from $172.00) on shares of Quaker Houghton in a research report on Monday, August 3rd. Weiss Ratings raised shares of Quaker Houghton from a “sell (d+)” rating to a “hold (c)” rating in a report on Monday, August 3rd. Zacks Research raised Quaker Houghton from a “hold” rating to a “strong-buy” rating in a report on Thursday, August 6th. Finally, Royal Bank Of Canada boosted their price objective on Quaker Houghton from $177.00 to $198.00 and gave the stock an “outperform” rating in a research report on Monday, August 3rd. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, Quaker Houghton currently has a consensus rating of “Buy” and a consensus target price of $187.00.

Quaker Houghton Stock Performance

The company has a quick ratio of 1.70, a current ratio of 2.46 and a debt-to-equity ratio of 0.62. The firm has a market capitalization of $2.90 billion, a PE ratio of 30.09, a P/E/G ratio of 1.11 and a beta of 1.40. The firm’s 50-day moving average price is $158.70 and its two-hundred day moving average price is $146.96.

Quaker Houghton (NYSE:KWR) last announced its quarterly earnings results on Thursday, July 30th. The specialty chemicals company reported $2.19 earnings per share for the quarter, topping analysts’ consensus estimates of $1.66 by $0.53. Quaker Houghton had a return on equity of 9.55% and a net margin of 4.94%.The company had revenue of $532.55 million during the quarter, compared to analysts’ expectations of $504.63 million. During the same quarter in the previous year, the firm earned $1.71 earnings per share. The business’s quarterly revenue was up 10.2% compared to the same quarter last year. As a group, research analysts predict that Quaker Houghton will post 7.85 earnings per share for the current fiscal year.

Quaker Houghton Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Friday, October 16th will be paid a $0.53 dividend. The ex-dividend date is Friday, October 16th. This is a positive change from Quaker Houghton’s previous quarterly dividend of $0.51. This represents a $2.12 annualized dividend and a dividend yield of 1.3%. Quaker Houghton’s dividend payout ratio is 36.19%.

Quaker Houghton declared that its Board of Directors has initiated a share buyback program on Wednesday, May 13th that authorizes the company to buyback $250.00 million in outstanding shares. This buyback authorization authorizes the specialty chemicals company to buy up to 10.1% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s management believes its stock is undervalued.

Insider Activity

In other news, Director William H. Osborne sold 600 shares of the stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $168.31, for a total value of $100,986.00. Following the completion of the transaction, the director owned 616 shares in the company, valued at approximately $103,678.96. This represents a 49.34% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 1.00% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Keybank National Association OH increased its position in Quaker Houghton by 3.5% in the 1st quarter. Keybank National Association OH now owns 2,084 shares of the specialty chemicals company’s stock valued at $259,000 after acquiring an additional 71 shares in the last quarter. CWM LLC lifted its holdings in Quaker Houghton by 1.8% during the 4th quarter. CWM LLC now owns 4,226 shares of the specialty chemicals company’s stock worth $580,000 after buying an additional 73 shares in the last quarter. PNC Financial Services Group Inc. boosted its position in Quaker Houghton by 1.0% in the 1st quarter. PNC Financial Services Group Inc. now owns 8,600 shares of the specialty chemicals company’s stock valued at $1,068,000 after buying an additional 83 shares during the last quarter. Integrated Wealth Concepts LLC raised its stake in shares of Quaker Houghton by 7.1% during the first quarter. Integrated Wealth Concepts LLC now owns 1,650 shares of the specialty chemicals company’s stock worth $204,000 after buying an additional 109 shares during the last quarter. Finally, LPL Financial LLC grew its position in shares of Quaker Houghton by 1.4% in the 4th quarter. LPL Financial LLC now owns 8,105 shares of the specialty chemicals company’s stock valued at $1,113,000 after purchasing an additional 114 shares during the period. Institutional investors and hedge funds own 77.46% of the company’s stock.

Quaker Houghton Company Profile

Quaker Houghton is a global provider of process fluids, chemical specialties and sustainable solutions for industrial applications. The company develops and supplies metalworking fluids, coatings, and corrosion inhibitors, as well as heat transfer, lubrication and additive products designed to improve productivity and extend equipment life. Its portfolio addresses a range of end markets including automotive, aerospace, defense, energy, mining, agriculture and heavy industry.

The company traces its roots back to the founding of Quaker Chemical Corporation in 1918 and Houghton International in 1865.