Buying PPG Industries Inc. (PPG) Stock Is A Smart Move Today?

PPG Industries Inc. (NYSE:PPG) finished Wednesday with an addition of $1.88 to close at $154.68, an upside of 1.23 percent. An average of 1,339,760 shares of common stock have been traded in the last five days. There was a gain of $7.93 in the past week. The last 20 days have seen an average of 1,182,370 shares traded, while the 50-day average volume stands at 1,104,354.

PPG stock has increased by 2.89% in the last month. The company shares reached their 1-month lowest point of $141.81 on 10/01/21. With the stock rallying to its 52-week high on 06/07/21, shares of the company touched a low of $123.52 and a high of $182.97 in 52 weeks. In spite of this, the price is down -15.46% from the 52-week high.


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Insider Transactions

143 days have passed since PPG Industries Inc. (PPG) last reported insider trading activity. KNAVISH TIMOTHY M, who is Executive Vice President, most recently acquired $22,851 shares at $178.78 per share on May 24. In this transaction, the insider spent $4,085,270. SVP, P&M Ctgs & Pres PPG EMEA, RAMAPRASAD VADLAMANNATI, disposed of 20,956 shares at a price of $168.84 on Apr 20. The insider now owns more than $3,538,202 worth of shares. Prior to that, VP and Controller (PAO) Schaupp William E went on to Sale 3,850 shares at $134.66 each on Nov 04. An amount of $518,451 was transacted.

Valuation Metrics

PPG Industries Inc. (PPG) has a trailing price-to-earnings (P/E) ratio of 24.26, which compares with the 17.00 for the broader industry and 13.61 for the sector. In the last five years, PPG Industries Inc.’s PE ratio has ranged between 36.39 and 13.92. The stock’s beta is 1.13. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.34, the price-to-book (PB) ratio at 5.89, and the price-to-cash flow ratio at 24.37.

PPG Industries Inc. pays a $2.36 dividend per share annually. It offers a dividend yield of 1.53%. The company has a payout ratio of 33.70%. The company’s most recent quarterly dividend payment took place on Sep. 10, and it was $0.59 a share, representing a up of 8.47 from $0.54 last year. Its dividend has been increased for the last 50 consecutive years with the latest increase dividend $0.05 reported on Thursday July 15 2021. Dividends have grown by 23.53% each year over the last three years.

PPG Industries Inc. will next go ex-dividend on 10-Nov. The next dividend payment PPG Industries Inc. will make is expected to be $0.59.

The quick ratio of PPG Industries Inc. for the three months ended June 29 was 1.00, and the current ratio was 1.40, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.02 and a total debt to equity ratio of 1.15 for the quarter ending June 29. On the profitability front, the trailing 12-month gross margin is 42.40% against a 5-year average of 43.7%. PPG Industries Inc.’s EBITDA margin for the year ending June 29 is 16.31%, while its operating margin for the same period stands at 12.90%. Its gross profit as reported stood at $6.06 billion compared to revenue of $13.83 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, PPG Industries Inc.’s return on assets was 7.60%, compared to 7.3% over the last five years. In the past year, the return on investment has been 10.00%, and the 5-year average is 13.0%. Meanwhile, the return on equity (ROE) for the past 12 months has been 26.40% and the 5-year average holds at 23.8%. For the broader industry, ROE averaged 8.64 over the past year.

Earnings Surprise

For the three-month period that ended June 29, PPG Industries Inc. had $110.0 million in cash. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $4.36 billion in the quarter, while revenues of $3.62 billion were grew 15.76%. The analyst consensus anticipated PPG Industries Inc.’s latest quarter earnings to come in at $2.19 per share, but it turned out to be $1.94, a -11.40% surprise. For the quarter, EBITDA amounted to $689.0 million. Shareholders own equity worth $237.36 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at PPG Industries Inc. (PPG) price momentum. RSI 9-day as of the close on 13 October was 72.63%, suggesting the stock is Overbought, with historical volatility in this time frame at 8.49%.

As of today, PPG’s price is $152.11 +5.40% or $7.93 from its 5-day moving average. PPG is currently trading +2.63% higher than its 20-day SMA and -13.32% lower than its 100-day SMA. However, the stock’s current price level is -6.61% below the SMA50 and +8.04% above the SMA200.

The stochastic %K and %D were 91.26% and 89.30%, respectively, and the average true range (ATR) was 3.10. With the 14-day stochastic at 97.28% and the average true range at 3.09, the RSI (14) stands at 60.88%. The stock has reached 4.09 on the 9-day MACD Oscillator while the 14-day reading was at 5.06.

Analyst Ratings

Mizuho launched coverage on PPG Industries Inc. (NYSE: PPG) in its analyst report released on October 13, 2021. The firm assigned the stock a a Buy rating.The consensus rating for PPG Industries Inc. (PPG) among analysts is Overweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell PPG, while 9 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 16 others rate it as a “buy”.

What is PPG’s price target for the next 12 months?

Analysts predict a range of price targets between $160.00 and $200.00, with a median target of $178.00. Taking a look at these predictions, the average price target given by analysts for PPG Industries Inc. (PPG) stock is $177.77.

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