Ashland Global (NYSE:ASH) Downgraded by Zacks Investment Research to Hold

Ashland Global (NYSE:ASH) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Wednesday, Zacks.com reports. They currently have a $77.00 target price on the basic materials company’s stock. Zacks Investment Research‘s price objective would indicate a potential upside of 5.13% from the stock’s previous close.

According to Zacks, “Earnings estimates for Ashland for the fiscal fourth quarter have been going down of late. The company’s restructuring actions have provided it with a diverse business portfolio focused on high-quality markets and better positioned it for future growth. The company's actions to reduce operating costs should also support its margins. Moreover, Ashland remains committed to boost its free cash flows through a number of initiatives including reduction in capital spending and net working capital. The company also remains committed to maintain its dividend. However, Ashland faces headwind from weak industrial demand due to the coronavirus pandemic. The company’s inventory management actions are also expected to affect its volumes in the fiscal fourth quarter. Its high debt level is also a matter of concern.”

Several other brokerages also recently issued reports on ASH. BMO Capital Markets upped their price target on shares of Ashland Global from $80.00 to $106.00 and gave the stock an “outperform” rating in a report on Wednesday, August 5th. JPMorgan Chase & Co. upped their price target on shares of Ashland Global from $62.00 to $75.00 and gave the stock a “neutral” rating in a report on Monday, August 24th. SunTrust Banks boosted their price objective on shares of Ashland Global from $75.00 to $87.00 and gave the stock a “buy” rating in a research note on Monday, July 20th. Wells Fargo & Company boosted their price objective on shares of Ashland Global from $85.00 to $90.00 and gave the stock an “overweight” rating in a research note on Thursday, July 30th. Finally, Monness Crespi & Hardt boosted their price objective on shares of Ashland Global from $80.00 to $88.00 and gave the stock a “buy” rating in a research note on Thursday, July 30th. Five equities research analysts have rated the stock with a hold rating and seven have given a buy rating to the company’s stock. The stock has an average rating of “Buy” and an average price target of $86.20.

ASH traded up $0.21 during trading on Wednesday, hitting $73.24. 2,111 shares of the stock traded hands, compared to its average volume of 351,525. Ashland Global has a twelve month low of $38.88 and a twelve month high of $81.82. The company has a market cap of $4.42 billion, a price-to-earnings ratio of -41.53, a PEG ratio of 2.76 and a beta of 1.42. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.78 and a quick ratio of 1.12. The business has a 50 day moving average price of $76.06 and a 200 day moving average price of $65.89.

Ashland Global (NYSE:ASH) last announced its quarterly earnings results on Tuesday, July 28th. The basic materials company reported $0.84 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.85 by ($0.01). The company had revenue of $574.00 million for the quarter, compared to analyst estimates of $574.61 million. Ashland Global had a positive return on equity of 4.79% and a negative net margin of 4.39%. The firm’s quarterly revenue was down 10.5% on a year-over-year basis. During the same quarter last year, the company posted $0.77 earnings per share. On average, equities research analysts predict that Ashland Global will post 2.47 earnings per share for the current year.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. raised its holdings in shares of Ashland Global by 4.7% during the second quarter. Vanguard Group Inc. now owns 5,965,578 shares of the basic materials company’s stock valued at $412,222,000 after purchasing an additional 267,884 shares during the period. Neuberger Berman Group LLC grew its position in shares of Ashland Global by 9.3% during the 2nd quarter. Neuberger Berman Group LLC now owns 3,119,120 shares of the basic materials company’s stock valued at $215,512,000 after acquiring an additional 264,956 shares during the period. Naya Capital Management UK Ltd. grew its position in shares of Ashland Global by 19.8% during the 1st quarter. Naya Capital Management UK Ltd. now owns 2,824,098 shares of the basic materials company’s stock valued at $141,403,000 after acquiring an additional 466,628 shares during the period. Schroder Investment Management Group grew its position in shares of Ashland Global by 3.1% during the 1st quarter. Schroder Investment Management Group now owns 1,274,250 shares of the basic materials company’s stock valued at $64,082,000 after acquiring an additional 37,984 shares during the period. Finally, FMR LLC boosted its holdings in Ashland Global by 6.7% in the 2nd quarter. FMR LLC now owns 1,151,922 shares of the basic materials company’s stock worth $79,598,000 after buying an additional 72,176 shares during the period. Hedge funds and other institutional investors own 92.63% of the company’s stock.

About Ashland Global

Ashland Global Holdings Inc provides specialty chemical solutions worldwide. The company's Specialty Ingredients segment offers products, technologies, and resources for solving formulation and product-performance challenges. It provides solutions using natural, synthetic, and semisynthetic polymers derived from cellulose ethers, vinyl pyrrolidones, acrylic polymers, polyester and polyurethane-based adhesives, and plant and seed extracts.

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