First Hawaiian Bank, a prominent institutional investor, has recently reduced its holdings in shares of Axalta Coating Systems Ltd. by 44.4% during the second quarter. The bank sold 10,956 shares of the specialty chemicals company’s stock, leaving it with a remaining ownership of 13,712 shares. These shares were valued at approximately $450,000 at the end of this reporting period. This development was revealed in a disclosure submission to the Securities and Exchange Commission (SEC).
Axalta Coating Systems, listed on the New York Stock Exchange under the ticker symbol AXTA, unveiled its quarterly earnings data on August 2nd. The company reported earnings per share (EPS) of $0.35 for the second quarter, falling short of analysts’ consensus estimates by $0.04. Additionally, its revenue for the quarter stood at $1.29 billion, which was below expectations from industry analysts who predicted revenues of $1.34 billion. Nevertheless, Axalta Coating Systems witnessed a 4.8% increase in revenue on a year-over-year basis.
The net margin for Axalta Coating Systems during this period was measured at 4.50%, while its return on equity stood at an impressive 21.28%. In comparison to last year’s second quarter when EPS was recorded at $0.41, there was a slight decline in performance.
Analyst reports have shed further light on Axalta Coating Systems’ position in the market and prospects for growth moving forward. StockNews.com initiated coverage on the company and issued a “hold” rating for it on August 17th while Citigroup rated it as “buy” with a target price set at $37 on June 13th.
KeyCorp also released a report in July where they upgraded their target price for Axalta Coating Systems from $36 to $38 . Conversely, Mizuho lowered their target price from $37 to $36 in early August but maintained a “buy” rating. Morgan Stanley labeled the stock as “equal weight” and set a target price of $32 on August 4th. The overall consensus, according to Bloomberg.com data, is that Axalta Coating Systems currently has a rating of “Moderate Buy” with an average target price of $33.24.
In light of these developments, it remains to be seen whether First Hawaiian Bank’s significant reduction in shares represents a broader trend among institutional investors or a unique strategy based on individual circumstances. However, investors and analysts will be closely monitoring Axalta Coating Systems to evaluate its future performance and its ability to rebound from the recent earnings miss.
With the third quarter already underway, all eyes are now on Axalta Coating Systems’ forthcoming performance results and any adjustments made by financial institutions in response to recent fluctuations in share value. The company is expected to post EPS of 1.46 for the current year, setting the stage for further evaluation and analysis in the months ahead.
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Strong Institutional Investor Support and Insider Purchases Indicate Promising Future for Axalta Coating Systems
In a surprising turn of events, a number of institutional investors have made significant moves with regards to Axalta Coating Systems, a specialty chemicals company. One such investor, KB Financial Partners LLC, acquired a new stake in the company during the first quarter, amounting to a value of $25,000. Similarly, Spire Wealth Management saw growth in its holdings of Axalta Coating Systems by an impressive 432.8% in the same period. Belpointe Asset Management LLC also got in on the action by acquiring a new stake worth approximately $33,000.
Parallel Advisors LLC experienced an increase of 110.2% in its stake during the first quarter, now owning 2,075 shares valued at $63,000. Lastly, Bessemer Group Inc., known for its shrewd investment strategies, increased its stake by an astonishing 14,961.1%, bringing their holdings to 2,711 shares valued at $83,000.
It is important to note that these institutional investors alone own an impressive 98.64% of Axalta Coating Systems’ stock no small feat for any company. The overwhelming support from these influential investors speaks volumes about the potential and promise that Axalta Coating Systems holds.
However, this flurry of activity is not confined to just institutional investors; insiders within the company have also made noteworthy purchases recently. CEO Chris Villavarayan purchased 33,710 shares on August 4th at an average price of $29.67 per share. This amounts to a substantial investment totaling over $1 million dollars. Following this acquisition, Villavarayan’s direct ownership of company shares stands at approximately 68,150 valued at around $2 million dollars.
Simultaneously, Director Kevin M. Stein purchased 36,600 shares on September 6th at an average price of $27.38 per share amounting to a total value of $1 million dollars. As a result, Stein now possesses 36,600 shares in Axalta Coating Systems.
The Securities & Exchange Commission promptly disclosed both Villavarayan and Stein’s acquisitions, solidifying their legitimacy and transparency. In the past ninety days, insiders have collectively purchased 70,710 shares worth an impressive $2,012,916. It is evident that these company insiders hold great confidence in the future prospects of Axalta Coating Systems.
Turning our attention to the stock market performance of Axalta Coating Systems, we find that its stock opened at $27.41 on September 18th. Over the past year, share prices have fluctuated between a low of $20.66 and a high of $33.68. Currently boasting a market capitalization of $6.08 billion, Axalta Coating Systems maintains a price-to-earnings ratio of 26.87 and a price-to-earnings-growth ratio of 1.66, indicating potential growth opportunities for investors.
Moreover, the stock has exhibited a beta value of 1.46 higher than the average benchmark implying an above-average level of volatility within the market sector.
As for liquidity indicators, Axalta Coating Systems’ fifty-day moving average stands at $29.56 with its two-hundred-day moving average slightly higher at $30.28.
Regarding financial health ratios, the company showcases a debt-to-equity ratio of 2.09 which emphasizes a moderate level of leverage in its operations. Furthermore, it exhibits a quick ratio of 1.45 and a current ratio of 2.02.
With all these developments in mind and taking into account the recent investments made by institutional investors as well as company insiders themselves, it is safe to say that confidence in Axalta Coating Systems remains steadfast despite fluctuations in share prices and market conditions.
Given such widespread support from influential stakeholders and the undoubtedly promising prospects of the specialty chemicals company, it would be wise for potential investors to keep a close eye on Axalta Coating Systems. The future may hold great promise for this dynamic organization as it continues to make strides in its industry.
