Element Solutions Inc. Receives “Moderate Buy” Consensus Rating from Analysts

Element Solutions Inc. (NYSE:ESI) has been assigned an average rating of “Moderate Buy” by analysts from eleven research firms monitoring the company. According to data from Marketbeat, three analysts recommend holding the stock, six suggest buying, and two have issued a strong buy rating. The average price target set by analysts over the past year stands at $30.75.

Recent evaluations have seen significant updates from various research firms. Notably, Fermium Research upgraded Element Solutions to a “strong buy” on September 17, 2023. Conversely, Mizuho adjusted its price target from $31.00 to $29.00, while maintaining an “outperform” rating on November 20, 2023. In another report, Bank of America raised its target price from $29.00 to $31.00, reiterating a “buy” recommendation on October 14, 2023. Similarly, KeyCorp increased its target from $32.00 to $34.00, giving the stock an “overweight” rating on October 30, 2023. On the same day, Truist Financial raised its price target from $28.00 to $30.00 while maintaining a “buy” rating.

Recent Earnings Report and Dividend Announcement

Element Solutions recently reported its quarterly earnings on October 28, 2023. The company achieved earnings of $0.41 per share, surpassing the consensus estimate of $0.39 by $0.02. The firm’s return on equity was recorded at 14.01%, with a net margin of 9.58%. Total revenue for the quarter was $656.10 million, exceeding analysts’ expectations of $645.13 million. Year-over-year, revenue grew by 1.7%, compared to $0.39 earnings per share from the same quarter last year. Analysts project that Element Solutions will report earnings of $1.45 per share for the current fiscal year.

In addition to its earnings report, Element Solutions announced a quarterly dividend of $0.08 per share, paid on December 15, 2023. Shareholders on record as of December 1, 2023, received this dividend, representing an annualized dividend of $0.32 and a yield of 1.1%. The company’s current dividend payout ratio is approximately 32.32%.

Insider Trading and Institutional Investments

In recent insider trading news, Matthew Liebowitz, an insider at Element Solutions, sold 37,000 shares on December 12, 2023, at an average price of $26.60, totaling $984,200. Following this transaction, Liebowitz retained 117,393 shares valued at around $3,122,653.80, marking a 23.96% decrease in his holdings. This transaction was disclosed in a filing with the Securities and Exchange Commission (SEC).

Additionally, Ian G. H. Ashken, a director at the company, sold 292,000 shares on November 5, 2023, at an average price of $27.00, amounting to $7,884,000. After this sale, Ashken owns 306,880 shares, valued at approximately $8,285,760, reflecting a 48.76% decrease in his stake. Currently, insiders hold approximately 6.90% of Element Solutions’ stock.

On the institutional front, several hedge funds have adjusted their positions in Element Solutions. Assenagon Asset Management S.A. increased its stake by 221.5% during the fourth quarter, owning 350,196 shares worth $8,751,000 after acquiring an additional 241,266 shares. Similarly, Wealth Enhancement Advisory Services LLC raised its position by 22.4%, now holding 32,954 shares valued at $908,000. GAMMA Investing LLC also increased its stake by 7.9%, totaling 10,093 shares worth $252,000.

In the previous quarter, Swiss Life Asset Management Ltd entered a new position valued at approximately $275,000. JPMorgan Chase & Co. expanded its holdings by 16.0%, now owning 4,071,434 shares valued at $102,479,000 after an acquisition of 562,205 shares in that period. Overall, institutional investors currently own approximately 92.32% of Element Solutions’ stock.

Element Solutions Inc. is a global specialty chemicals company that provides engineered chemistries to various performance-driven markets. Its products serve customers in sectors such as electronics, energy, transportation, and consumer goods, with a specific focus on electronics chemicals and industrial coatings.