Ashland (NYSE:ASH) Reaches New 12-Month Low After Earnings Miss

Shares of Ashland Inc. (NYSE:ASH) reached a new 52-week low on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $68.01 and last traded at $68.43, with a volume of 312618 shares. The stock had previously closed at $71.16.

The basic materials company reported $0.28 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.79 by ($0.51). Ashland had a return on equity of 7.43% and a net margin of 7.95%. During the same quarter last year, the firm posted $0.45 EPS.

Ashland Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Saturday, March 15th. Stockholders of record on Saturday, March 1st will be paid a dividend of $0.405 per share. The ex-dividend date of this dividend is Friday, February 28th. This represents a $1.62 dividend on an annualized basis and a dividend yield of 2.38%. Ashland’s dividend payout ratio (DPR) is currently 48.36%.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the company. BMO Capital Markets upped their price objective on Ashland from $83.00 to $84.00 and gave the company a “market perform” rating in a report on Wednesday, December 11th. StockNews.com downgraded shares of Ashland from a “buy” rating to a “hold” rating in a research note on Thursday, December 12th. Wells Fargo & Company dropped their price objective on shares of Ashland from $95.00 to $90.00 and set an “overweight” rating for the company in a research note on Wednesday, December 11th. Finally, UBS Group cut their price objective on shares of Ashland from $95.00 to $93.00 and set a “buy” rating for the company in a report on Wednesday. Three research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat, Ashland presently has an average rating of “Moderate Buy” and an average price target of $100.00.

Insider Buying and Selling

In other Ashland news, SVP Robin E. Lampkin sold 868 shares of the firm’s stock in a transaction on Friday, November 15th. The stock was sold at an average price of $77.90, for a total value of $67,617.20. Following the sale, the senior vice president now owns 2,883 shares of the company’s stock, valued at approximately $224,585.70. This trade represents a 23.14 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, VP Eric N. Boni sold 451 shares of the business’s stock in a transaction on Thursday, December 5th. The stock was sold at an average price of $78.07, for a total value of $35,209.57. Following the transaction, the vice president now directly owns 14,182 shares of the company’s stock, valued at $1,107,188.74. This trade represents a 3.08 % decrease in their position. The disclosure for this sale can be found here. 1.02% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Ashland

A number of hedge funds have recently made changes to their positions in the stock. Equitable Trust Co. lifted its stake in Ashland by 2.2% in the 3rd quarter. Equitable Trust Co. now owns 6,431 shares of the basic materials company’s stock valued at $559,000 after purchasing an additional 141 shares during the last quarter. Raymond James Trust N.A. increased its holdings in shares of Ashland by 5.5% during the third quarter. Raymond James Trust N.A. now owns 3,104 shares of the basic materials company’s stock worth $270,000 after buying an additional 163 shares in the last quarter. Creative Planning lifted its stake in shares of Ashland by 3.8% in the 2nd quarter. Creative Planning now owns 4,867 shares of the basic materials company’s stock valued at $460,000 after acquiring an additional 176 shares during the last quarter. Crossmark Global Holdings Inc. boosted its holdings in shares of Ashland by 5.4% during the 3rd quarter. Crossmark Global Holdings Inc. now owns 3,532 shares of the basic materials company’s stock valued at $307,000 after acquiring an additional 182 shares in the last quarter. Finally, Central Pacific Bank Trust Division grew its position in Ashland by 16.5% during the 3rd quarter. Central Pacific Bank Trust Division now owns 1,677 shares of the basic materials company’s stock worth $146,000 after acquiring an additional 237 shares during the last quarter. 93.95% of the stock is currently owned by institutional investors and hedge funds.

Ashland Price Performance

The company has a current ratio of 2.44, a quick ratio of 1.33 and a debt-to-equity ratio of 0.47. The firm has a market cap of $3.21 billion, a P/E ratio of 20.36, a price-to-earnings-growth ratio of 1.14 and a beta of 0.87. The business has a 50-day moving average of $73.40 and a two-hundred day moving average of $82.21.

About Ashland

Ashland Inc provides additives and specialty ingredients in the North and Latin America, Europe, Asia Pacific, and internationally. It operates through Life Sciences, Personal Care, Specialty Additives, and Intermediates segments. The Life Sciences segment offers pharmaceutical solutions, including controlled release polymers, disintegrants, tablet coatings, thickeners, solubilizers, and tablet binders; nutrition solutions, such as thickeners, stabilizers, emulsifiers, and additives; and nutraceutical solutions comprising products for weight management, joint comfort, stomach and intestinal health, sports nutrition, and general wellness, as well as custom formulation, toll processing, and particle engineering solutions.