RPM International (NYSE:RPM) Shares Gap Up on Strong Earnings

RPM International Inc. (NYSE:RPM)’s stock price gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $101.53, but opened at $107.00. RPM International shares last traded at $107.4910, with a volume of 355,478 shares.

The specialty chemicals company reported $1.89 EPS for the quarter, topping the consensus estimate of $1.83 by $0.06. The company had revenue of $2.23 billion during the quarter, compared to analyst estimates of $2.18 billion. RPM International had a return on equity of 22.45% and a net margin of 8.41%.RPM International’s revenue was up 7.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.72 earnings per share.

RPM International Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Tuesday, July 14th will be paid a dividend of $0.54 per share. This represents a $2.16 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date is Tuesday, July 14th. RPM International’s payout ratio is currently 41.62%.

RPM International News Summary

Here are the key news stories impacting RPM International this week:

• Positive Sentiment: RPM International reported record fiscal Q4 and full-year results, beating EPS and revenue expectations and supporting the view that underlying demand remains solid.
• Positive Sentiment: Several analysts turned more constructive, including BMO Capital Markets, Royal Bank of Canada, and Bank of America, all raising price targets and maintaining bullish ratings.
• Positive Sentiment: The company expanded its buyback plan, which can support earnings per share and signals confidence in cash generation.
• Neutral Sentiment: Zacks noted that construction and infrastructure strength are helping offset some softness in DIY/consumer demand and inflation, but it still sees only modest upside from here.
• Negative Sentiment: Not all analyst views were upbeat: Morgan Stanley trimmed its price target and kept an “equal weight” rating, reflecting caution around the near-term upside.
• Negative Sentiment: Management highlighted inflation and conflict-related cost pressure as headwinds for fiscal 2027, which may be limiting enthusiasm despite the earnings beat.

Analyst Ratings Changes

A number of equities analysts recently issued reports on the stock. Royal Bank Of Canada raised their price objective on shares of RPM International from $126.00 to $128.00 and gave the stock an “outperform” rating in a report on Thursday. Weiss Ratings cut shares of RPM International from a “hold (c+)” rating to a “hold (c)” rating in a report on Wednesday, April 29th. UBS Group upgraded shares of RPM International from a “neutral” rating to a “buy” rating and increased their price target for the stock from $118.00 to $130.00 in a research report on Wednesday, May 27th. Wall Street Zen cut shares of RPM International from a “buy” rating to a “hold” rating in a research note on Saturday, July 4th. Finally, Zacks Research raised shares of RPM International from a “strong sell” rating to a “hold” rating in a research report on Thursday, April 9th. Eleven investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $127.58.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of RPM. Ares Financial Consulting LLC purchased a new stake in RPM International in the 4th quarter worth $37,000. Rothschild Investment LLC boosted its stake in shares of RPM International by 2,387.0% in the fourth quarter. Rothschild Investment LLC now owns 572 shares of the specialty chemicals company’s stock worth $59,000 after acquiring an additional 549 shares during the period. Los Angeles Capital Management LLC purchased a new stake in shares of RPM International during the fourth quarter worth about $60,000. Resources Management Corp CT ADV grew its position in shares of RPM International by 21,566.7% during the fourth quarter. Resources Management Corp CT ADV now owns 650 shares of the specialty chemicals company’s stock worth $68,000 after purchasing an additional 647 shares in the last quarter. Finally, Commonwealth Retirement Investments LLC bought a new stake in RPM International during the 4th quarter valued at approximately $69,000. Institutional investors own 80.95% of the company’s stock.

RPM International Price Performance

The firm has a 50 day moving average of $105.47 and a 200-day moving average of $106.28. The company has a current ratio of 1.68, a quick ratio of 1.44 and a debt-to-equity ratio of 0.64. The company has a market cap of $13.33 billion, a P/E ratio of 20.25, a P/E/G ratio of 2.45 and a beta of 1.04.

RPM International Company Profile

RPM International Inc is a global holding company whose subsidiaries specialize in the manufacture and marketing of high-performance coatings, sealants, building materials, and specialty chemicals. Through its two principal operating segments—Performance Coatings and Industrial Coatings—RPM serves a diverse range of end markets, including construction, consumer products, industrial maintenance, and specialty applications.

The company’s Performance Coatings segment offers a broad portfolio of architectural coatings, waterproofing systems, and specialty building products used by contractors, builders, and homeowners.