According to a recent disclosure with the Securities and Exchange Commission (SEC), Perpetual Ltd has increased its stake in shares of Axalta Coating Systems Ltd. by 7.4% during the second quarter. The Australian financial services company now owns 504,432 shares of Axalta’s stock, representing an additional 34,621 shares acquired during the quarter. At the end of the reporting period, these holdings were estimated to be worth $16,550,000.
Axalta Coating Systems is a specialty chemicals company listed on the New York Stock Exchange (NYSE) under the ticker symbol AXTA. On September 22, 2023, it released its quarterly earnings data for the most recent reporting period ending on August 2nd. Unfortunately, for this quarter, Axalta reported earnings per share (EPS) of $0.35, falling short of the consensus estimate of $0.39 by ($0.04).
The company’s net margin was recorded at 4.50%, and it boasted a return on equity of 21.28%. Despite missing EPS expectations, Axalta managed to generate revenue amounting to $1.29 billion during this quarter; however, this figure fell slightly below analyst estimates which were set at $1.34 billion.The firm’s year-over-year revenue growth rate was recorded at 4.8%.
In comparison to the same period in the previous fiscal year when Axalta reported EPS of $0.41, there has been a slight decline in their latest earnings results.
Market watchers forecast that Axalta Coating Systems is likely to post an EPS of 1.46 for the current fiscal year on average.
While Perpetual Ltd’s increase in stake may indicate confidence in Axalta’s long-term prospects as a specialty chemicals company in various industries such as automotive coatings and industrial applications; cautious investors may want to follow future earning releases closely to assess whether Axalta can overcome the challenges it faced in this latest quarter and exhibit sustainable growth.
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Axalta Coating Systems Faces Shifting Positions as Hedge Funds and Insiders Make Moves
Axalta Coating Systems (NYSE:AXTA) is currently facing significant changes in its positions as several hedge funds have made adjustments to their holdings in the company. SG Americas Securities LLC acquired a new position in Axalta Coating Systems during the second quarter, valued at approximately $4,298,000. At the same time, ProShare Advisors LLC increased its stake in the specialty chemicals company by 60.5% during the first quarter.
Rockefeller Capital Management L.P. and Thrivent Financial for Lutherans also grew their positions in Axalta Coating Systems in the first quarter, indicating a flurry of activity among influential institutional investors and hedge funds. These changes suggest a dynamic environment within the company’s investment landscape.
In terms of analyst recommendations, Royal Bank of Canada recently decreased its price target on Axalta Coating Systems from $36 to $34 while maintaining an “outperform” rating on the stock. Citigroup started coverage on the company and issued a “buy” rating with a price target of $37. StockNews.com also backed this trend with a “hold” rating.
Contrarily, KeyCorp lifted its price target from $36 to $38 and Wells Fargo & Company raised theirs from $32 to $33. Overall, Bloomberg reports that there is currently a consensus rating of “Moderate Buy” among analysts, with an average price target of $33.24.
The news surrounding Axalta Coating Systems doesn’t stop there. In recent insider trades disclosed by Securities & Exchange Commission filings, Director Kevin M. Stein purchased 36,600 shares at an average price per share of $27.38 on September 6th. This transaction amounted to a total value of approximately $1,002,108.
Additionally, CEO Chris Villavarayan acquired 33,710 shares at an average price per share of $29.67 back on August 4th for a total transaction worth $1,000,175.70. Both insiders now hold significant stakes in the company.
With regards to financials, Axalta Coating Systems opened at $26.53 on September 22nd. The company boasts a healthy quick ratio of 1.45 and a current ratio of 2.02, indicating strong liquidity positions. Its debt-to-equity ratio stands at 2.09, which may be worth monitoring for some investors. Moreover, the firm has a market capitalization of $5.88 billion, with a P/E ratio of 26.01 and a price-to-earnings-growth ratio of 1.69.
Overall, these recent developments demonstrate the complexities within Axalta Coating Systems as hedge funds make changes to their positions while research analysts issue reports on its stock performance and targets. This intricate investment landscape raises questions about the future direction of the company and presents an intriguing opportunity for investors seeking to understand and capitalize on this perplexing situation.
