In the dynamic world of finance, Sensient Technologies Corporation (NYSE:SXT) is a company that has managed to carve its name into the list of distinguished specialty ingredient manufacturers operating in the United States and internationally. Boasting an extensive portfolio of colors, flavors, and other specialty ingredients, Sensient Technologies continuously seeks to optimize customer satisfaction through innovation and development. Diversified Trust Co seems keen on capitalizing on this niche market by increasing its stake in Sensient during 1Q2021. According to the most recent filing with the Securities & Exchange Commission, Diversified Trust Co raised its position by 47.7%, purchasing an additional 2,000 shares that translate to 6,189 shares at the end of Q1 and were valued at $474,000.
Sensient Technologies Corporation’s operations are spread out through three segments: Flavors & Extracts Group, Color Group, and Asia Pacific Group. The Flavors & Extracts Group offers customers various flavor-delivery systems compounded products; essential oils; synthetic flavors; natural extracts including chili powder—which can provide food an array of useful benefits such as enhancing taste and smelling food aroma—as well as paprika, chili pepper, celery parsley spinach dehydrated vegetables essential for personal care industry applications among others.
Presently trading at $69.56 per share at open on Friday last week with a market capitalization value amounting to $2.94 billion coupled with P/E ratio resting at 21.34 ushered by a beta of 0.89 positions SXT well amongst competitors in similar verticals within today’s marketspace.
The stock has shown strong support structures all through trading periods with extensive support visible via our analysis constituting consistent trades over multiple reporting periods ranging from fifty days moving average sitting comfortably at $74.29 down to two hundred-day moving average holding constant at $74.36.
As a result of the extensive market coverage and innovative product lineups that Sensient deploys to appeal to its diverse client base, it has been able to maintain a healthy financial position that endears it to key players in the industry. Featuring a debt-to-equity ratio of 0.66, which is relatively low compared to standard values used as guidelines in investment circles fluid strategies deployed by products teams can be said to have paid off. The corporation’s management has also ensured that operational efficiency remains at an optimal level with current ratios sitting firm at 4.09 and quick ratios dovetailing at 1.65.
During the economic downturn triggered by the COVID-19 pandemic, investors are looking for companies that exhibit stable growth potentials coupled with exposure to unique niches representing resilient markets— where Sensient Technologies Corporation operates thrive—, this coupled is creating a surge of interest amongst potential investors prompting some analysts predict SXT stock may shoot high beyond its preset trading range before year-end.
Overall it seems like Diversified Trust Co made a savvy move by increasing its share count in May considering Sensient’s trajectory over Q1 and outlook for future quarters particularly following maneuvers adopted heading into H2 2021.
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Sensient Technologies Corporation Gains Interest from Major Institutional Investors and Offers Dividend Yield to Stockholders
Sensient Technologies Corporation, a leading specialty chemicals company, has recently gained the interest of major institutional investors. Mackenzie Financial Corp has increased its stake in Sensient Technologies by 5.1% since the first quarter and currently holds 2,573 shares worth $216,000. Following suit, Panagora Asset Management Inc has purchased an additional 127 shares totaling their stake at 2.0%. State of Wyoming and First Republic Investment Management Inc have both increased stakes by 23.3% and 2.4%, respectively. Martingale Asset Management LP owns the largest addition with a 0.9% investment increase during the third quarter, now owning over 22k shares valued at $1,564,000.
Sensient Technologies Corporation operates through three different segments; Flavors & Extracts Group, Color Group, and Asia Pacific Group to develop colors, flavors and other specialty ingredients for various industries including food and beverage as well as personal care products. The Flavors & Extracts Group segment offers ingredient products such as synthetic flavors and natural extracts for use in several industries.
Additionally, financial media outlet StockNews.com initiated coverage on Sensient Technologies Corporation by offering a “hold” rating on their stock following the release of earnings results last April which showed an increase in earnings per share exceeding expectations.
Stockholders will be given a dividend yield of 2.36% accumulated from annualized dividends equal to $1.64 after recently receiving a quarterly dividend representing a dividend payout ratio (DPR) currently regulated at 50.31%.