The stock of Element Solutions Inc (NYSE:ESI) decreased by -$0.13 on Friday to finish at $20.27, down -0.64 percent. The last five days have seen an average of 1,109,160 shares of common stock traded. 12 times new highs were reached in the current year, with a gain of $2.08. The average number of shares traded over the last 20 days was 1,445,820, while the average volume over the last 50 days totaled 1,411,514.
ESI stock appreciated 2.79% since last month. On 07/12/23, the company’s shares reached a one-month low of $19.16. The stock touched a high of $21.90 on 02/02/23, after rallying from a low of $15.31 in 52 weeks. The price of ESI stock has risen by 11.43% or $2.08 this year, reaching a new high 12 times. Still, the stock price is down -7.44% from the 52-week high.
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Insider Transactions
ESI stock investors should be aware that Element Solutions Inc (ESI) stock had its last reported insider trading activity 68 days ago on Jun 07. On Jun 07, EVP, Head of I&S Goralski Michael sold 28,000 shares at $19.07 each. This transaction resulted in the insider making $533,960. On Jun 01, Gliklich Benjamin sold 8,469 shares at a price of US$18.01. After the transaction, the insider now owns 621,208 shares. EVP, CFO Dorman Carey J. had earlier sold 3,656 shares on Jun 01 for $18.00 a share. The transaction was completed for $65,808.
Valuation Metrics
Element Solutions Inc (ESI) has a trailing price-to-earnings (P/E) ratio of 36.26. Beta for the stock is 1.30. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 2.09, the price-to-book (PB) ratio of 2.12, and the price-to-cash flow ratio of 15.61.
Company paid $0.08 per share in dividends, remained unchanged from $0.08 last year. A $0.02 dividend increase was reported on Thursday November 18 2021.
Financial Health
For the three months ended June 29, Element Solutions Inc’s quick ratio was 2.40, while its current ratio was 3.30, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.88, and the total debt to equity ratio is 0.89. As far as profitability goes, gross margin for the trailing twelve months is 38.10% percent. Element Solutions Inc’s EBITDA margin for the year ended June 29 was 19.46%, whereas its operating margin stood at 11.00% for the same period. Based on annual data, it had gross profit of $952.7 million and revenue of $2.55 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. ESI’s return on assets (ROA) during the last 12 months has been 2.80%. There was a 5.70% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 6.00%.
Earnings Surprise
According to Element Solutions Inc’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $586.1 million, while revenues fell by -15.49% to $574.4 million. It was predicted that Element Solutions Inc’s quarterly earnings would be $0.31, but it ended up being $0.31. EBITDA was $93.7 million for the quarter. At the end of Element Solutions Inc’s most recent quarter ended June 29, its liabilities totaled 2.74 billion, while its total debt was $2.04 billion. Equity owned by shareholders amounts to $241.49 million.
Technical Picture
Here’s a quick look at Element Solutions Inc’s (ESI) price momentum from a technical perspective. As of 11 August, the RSI 9-day stood at 46.49%, suggesting the stock is Neutral, with a 16.18% historical volatility rate.
The stochastic %K and %D were 55.06% and 68.89% respectively, while the average true range (ATR) was 0.45. Based on the 14-day stochastic reading of 37.04%, the RSI (14) reading is 52.37%. On the 9-day MACD Oscillator, the stock is at -0.13, and the 14-day reading is at -0.06.
Analyst Ratings
In its analyst report released on June 20, 2023, BMO Capital Markets began covering Element Solutions Inc (NYSE: ESI). The stock was rated as an Outperform by the brokerage firm. Analysts have assigned Element Solutions Inc (ESI) an Overweight rating. ESI is a stock that is recommended for selling by 1 brokerage firm, while 1 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 2 rates it overweight and 6 others recommend it as a buy.
What is ESI’s price target for the next 12 months?
The current consensus forecast for the stock is between $17.00 and $25.00, with a median target price of $23.50. In analyzing these forecasts, the average price target given by analysts for Element Solutions Inc (ESI) is $22.70.
