On June 15th, Kronos Worldwide, Inc. will pay its quarterly dividend to shareholders of record as of June 5th. The specialty chemicals company will issue a $0.19 per share dividend, representing a $0.76 annualized dividend and an impressive yield of 8.62%. However, the company’s dividend payout ratio (DPR) is currently at an astonishing 281.48%, raising questions about the sustainability of the high yield.
Recently, Dimensional Fund Advisors LP reduced its position in Kronos Worldwide by 3.3% during the fourth quarter, according to the company’s most recent Form 13F filing with the SEC. The institutional investor owned 2,210,949 shares worth $20,784,000 as of its most recent SEC filing.
Investment analysts have also weighed in on Kronos Worldwide’s performance, issuing mixed reviews and ratings. StockNews.com gave it a “sell” rating while Barclays lowered its price objective from $8 to $7 and Deutsche Bank Aktiengesellschaft decreased their price target from $12 to $11.
Despite these valuations and expectations for subdued profits in years ahead there are some those contesting these assumptions indicating that other price analysis routines may be telling a different story.
As long-term investors continue to evaluate the potential risks and rewards associated with Kronos Worldwide stock amid financial reports such as these latest updates from analysts mentioning sell ratings coupled alongside them disclosing sizeable position orders for companies like Kronos as Dimensional had just shown; individuals must consider all aspects before investing.
Therefore whether one sees value or not; it’s obvious that market participants will proceed cautiously regardless
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Kronos Worldwide: Institutional Investment Insights and Recent Activity
Kronos Worldwide: An Insight into Institutional Investors’ Positions and Recent Activity
Specialty chemicals company, Kronos Worldwide (NYSE: KRO) has been attracting institutional investors as evidenced by the recent activities of several organizations. Swiss National Bank has boosted its holdings in Kronos Worldwide by 7.5% in Q1 and now owns 54,700 shares worth $849,000. Raymond James & Associates raised its stake in shares by 2.3%, now owning 60,411 shares worth $938,000. Bank of New York Mellon Corp also increased their stake by 1.7%, holding 955,037 shares worth $14,823,000.
Acadian Asset Management LLC raised its stake considerably higher, acquiring an additional 40,102 shares (representing a percentage increase of 2,241.6%) during Q1 and now holds a total of 41,891 shares worth $648,000. Meanwhile, American Century Companies Inc purchased a new stake worth approximately $426k during the same period.
It is worth noting that institutional investors hold a significant percentage (15.91%) of the company’s stock.
In addition to these activities from institutional investors and hedge funds; Andrew B Nace EVP acquired 4k shares of Kronos Worldwide’s stock as part of a transaction on May 24th at an average cost per share of $8.31 with a total value reaching $33,240.
The company is also set to pay out quarterly dividends to shareholders owning KRO shares; this payment will be made on June 15th to those who are shareholders as of June 5th; each shareholder will be issued a dividend payout per share valued at $0.19/quarterly which represents an annualized dividend and yield rate of $0.76/8.62%. The ex-dividend date will fall on June 2nd with the company’s current dividend payout ratio at 281.48%.
Kronos Worldwide currently holds a market capitalization of $1.01bn and operates with a price-to-earnings ratio of 32.67 and a beta of 1.05. These figures are reflected in the recent earnings report, which fell short of analysts’ expectations with the business recording losses per share valued at ($0.18) for Q1 whereas analysts predicted losses of ($0.02) per share.
With everything taken into consideration including institutional investors’ positions, recent activities, dividend payouts, past performance and forecasted earnings – it’s clear that KRO stands as an attractive proposition for long-term investors who may want to consider adding it to their portfolios.