Zacks Investment Research lowered shares of RPM International (NYSE:RPM) from a buy rating to a hold rating in a research note released on Wednesday, Zacks.com reports. The firm currently has $85.00 price objective on the specialty chemicals company’s stock.
According to Zacks, “RPM reported better-than-expected fourth-quarter fiscal 2020 earnings. RPM has been benefiting from the 2020 MAP to Growth initiative and improved pricing. Notably, its fiscal fourth-quarter year-over-year MAP savings were near the mid-$20 million range. However, coronavirus-induced global shutdowns largely impacted the overall results. Earnings and sales declined 8.9% each from the prior year. Interruptions in manufacturing and distribution operations, as well as maintenance, repair and construction activities led to the downside. Also, currency headwinds added to the woes. That said, the bottom line for fiscal 2020 grew 13.3% year over year despite a 1% fall in sales. For fiscal 2021, RPM expects net sales growth in low-single digits and adjusted EBIT improvement to be nearly 20% on the back of the Consumer Group’s rally.”
Several other analysts have also recently issued reports on RPM. Royal Bank of Canada upped their price objective on RPM International from $78.00 to $93.00 and gave the stock an outperform rating in a report on Tuesday, July 28th. Wells Fargo & Co increased their price objective on shares of RPM International from $84.00 to $93.00 and gave the company an overweight rating in a research report on Tuesday, July 28th. TheStreet upgraded shares of RPM International from a c+ rating to a b rating in a report on Monday, June 8th. Robert W. Baird lowered their price objective on RPM International from $75.00 to $65.00 and set a neutral rating for the company in a research note on Thursday, April 9th. Finally, BMO Capital Markets upped their price target on shares of RPM International from $80.00 to $101.00 and gave the company an outperform rating in a report on Tuesday, July 28th. Seven analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. The company currently has a consensus rating of Buy and a consensus target price of $86.38.
RPM International (NYSE:RPM) last announced its quarterly earnings results on Monday, July 27th. The specialty chemicals company reported $1.13 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.01 by $0.12. RPM International had a net margin of 5.53% and a return on equity of 29.73%. The company had revenue of $1.46 billion for the quarter, compared to the consensus estimate of $1.40 billion. During the same period in the previous year, the firm posted $1.24 EPS. RPM International’s revenue for the quarter was down 8.9% compared to the same quarter last year. As a group, equities analysts expect that RPM International will post 3.68 EPS for the current year.
The company also recently declared a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Thursday, July 16th were given a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a dividend yield of 1.76%. The ex-dividend date was Wednesday, July 15th. RPM International’s payout ratio is 46.91%.
In related news, SVP Edward W. Moore sold 6,618 shares of RPM International stock in a transaction dated Thursday, July 30th. The stock was sold at an average price of $81.11, for a total value of $536,785.98. Following the completion of the sale, the senior vice president now directly owns 62,186 shares in the company, valued at $5,043,906.46. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 1.60% of the company’s stock.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Quadrant Capital Group LLC increased its holdings in RPM International by 479.1% during the fourth quarter. Quadrant Capital Group LLC now owns 637 shares of the specialty chemicals company’s stock valued at $46,000 after buying an additional 527 shares during the period. Column Capital Advisors LLC increased its stake in RPM International by 37.1% during the first quarter. Column Capital Advisors LLC now owns 1,141 shares of the specialty chemicals company’s stock worth $68,000 after acquiring an additional 309 shares during the last quarter. WASHINGTON TRUST Co purchased a new stake in RPM International in the first quarter valued at $79,000. Livforsakringsbolaget Skandia Omsesidigt purchased a new stake in RPM International in the first quarter valued at $83,000. Finally, Arden Trust Co acquired a new position in shares of RPM International in the 1st quarter valued at $93,000. Hedge funds and other institutional investors own 76.55% of the company’s stock.
About RPM International
RPM International Inc manufactures and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. Its Industrial segment offers waterproofing, coatings, and institutional roofing systems; sealants, air barriers, tapes, and foams; residential home weatherization systems; roofing and building maintenance and related services; sealing and bonding, and flooring and in-plant glazing solutions; solutions for fire stopping and intumescent steel coating, and the manufacturing industry; polymer flooring systems; and fiberglass reinforced plastic gratings and shapes.
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