PPG Industries (NYSE:PPG) Shares Gap Up on Better-Than-Expected Earnings

PPG Industries, Inc. (NYSE:PPG)’s share price gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $103.81, but opened at $110.10. PPG Industries shares last traded at $107.41, with a volume of 473,718 shares traded.

The specialty chemicals company reported $1.72 EPS for the quarter, topping analysts’ consensus estimates of $1.62 by $0.10. PPG Industries had a return on equity of 23.78% and a net margin of 6.41%. The business had revenue of $3.68 billion during the quarter, compared to the consensus estimate of $3.67 billion. During the same period in the previous year, the company posted $1.87 earnings per share. The business’s revenue for the quarter was down 4.3% on a year-over-year basis.

PPG Industries Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 12th. Stockholders of record on Monday, May 12th will be given a dividend of $0.68 per share. This represents a $2.72 dividend on an annualized basis and a dividend yield of 2.50%. The ex-dividend date is Monday, May 12th. PPG Industries’s dividend payout ratio is presently 57.51%.

Analyst Upgrades and Downgrades

PPG has been the subject of a number of analyst reports. JPMorgan Chase & Co. lowered their price objective on PPG Industries from $115.00 to $105.00 and set a “neutral” rating for the company in a research report on Thursday. UBS Group boosted their price objective on PPG Industries from $110.00 to $111.00 and gave the stock a “neutral” rating in a research report on Wednesday. Seaport Res Ptn downgraded PPG Industries from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, March 5th. Mizuho lowered their price objective on PPG Industries from $150.00 to $140.00 and set an “outperform” rating for the company in a research report on Monday, February 3rd. Finally, Royal Bank of Canada lowered their price target on PPG Industries from $128.00 to $120.00 and set a “sector perform” rating for the company in a report on Tuesday, February 4th. Nine equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $129.42.

Insider Buying and Selling at PPG Industries

In other PPG Industries news, CEO Timothy M. Knavish sold 4,800 shares of the business’s stock in a transaction that occurred on Friday, February 14th. The stock was sold at an average price of $118.35, for a total value of $568,080.00. Following the completion of the sale, the chief executive officer now owns 35,833 shares in the company, valued at approximately $4,240,835.55. The trade was a 11.81 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.33% of the stock is owned by company insiders.

Institutional Investors Weigh In On PPG Industries

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Park Square Financial Group LLC purchased a new stake in shares of PPG Industries during the fourth quarter worth approximately $26,000. Legend Financial Advisors Inc. purchased a new stake in shares of PPG Industries during the fourth quarter worth approximately $27,000. CVA Family Office LLC raised its stake in shares of PPG Industries by 70.6% during the first quarter. CVA Family Office LLC now owns 273 shares of the specialty chemicals company’s stock worth $30,000 after purchasing an additional 113 shares during the last quarter. Prudent Man Investment Management Inc. purchased a new stake in shares of PPG Industries during the fourth quarter worth approximately $36,000. Finally, Albion Financial Group UT purchased a new stake in shares of PPG Industries during the fourth quarter worth approximately $38,000. Hedge funds and other institutional investors own 81.86% of the company’s stock.

PPG Industries Price Performance

The company has a debt-to-equity ratio of 0.77, a current ratio of 1.58 and a quick ratio of 1.13. The company has a 50 day moving average price of $107.05 and a 200 day moving average price of $116.52. The firm has a market cap of $24.71 billion, a PE ratio of 23.01, a PEG ratio of 2.19 and a beta of 1.16.

About PPG Industries

PPG Industries, Inc manufactures and distributes paints, coatings, and specialty materials in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through two segments, Performance Coatings and Industrial Coatings. The Performance Coatings segment offers coatings, solvents, adhesives, sealants, sundries, and software for automotive and commercial transport/fleet repair and refurbishing, light industrial coatings, and specialty coatings for signs; wood stains; paints, thermoplastics, pavement marking products, and other advanced technologies for pavement marking for government, commercial infrastructure, painting, and maintenance contractors; and coatings, sealants, transparencies, transparent armor, adhesives, engineered materials, and packaging and chemical management services for commercial, military, regional jet, and general aviation aircraft.