On December 03, 2019, Element Solutions Inc (NYSE:ESI) shares lost -3.14% or -0.36 points to close at $11.11 with a thin trading volume of 3.161 million shares. It opened the trading session at $11.34, the shares rose to $11.38 and dropped to $11.09, the range by which the price of stock traded the whole day. The company now has a market cap of $2.82 billion and currently has 253.46 million outstanding shares. Element Solutions Inc (ESI) stock has plunged -2.63 percent of market value in 21 trading days.
ESI stock’s trailing 3-year beta is 2.16, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was -$0.18 share in the trailing 52 weeks. The stock’s value surged 7.55 percent year to date (YTD) compared to a decline of -5.61 percent in 52 week’s period. The firm’s shares are still trading -12.79 percent below its 1-year high of $12.74 and 29.94 percent up from 52-week low of $8.55. The average consensus ranking on the company is 2.4, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.
Element Solutions Inc (ESI) is most likely going to rise 19.62 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $14-month high price target. This represents a whopping 26.01 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $14, which means a return possibility of 26.01 percent in comparison with the closing price of the stock of $11.11 on December 03. The lowest price set for the stock is $12 — just above 8.01 percent from ESI share price now.
Past records have indicated that shares in Element Solutions Inc declined on 17 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of ESI’s Q4 earnings on March 03. Analysts are predicting revenue to suffer decline of -5.6 percent to $451M in the financial fourth quarter, while EPS will soar by about 900 percent to $0.2 per share. In the last quarter, it earnings of $0.2 per share came worse than the $0.21346, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $478.4M, topping the $475.88M analysts had expected. Earnings are seen to rise by 48.7 percent this year, 9.46 percent in the coming year and the trend continues by 27.6 percent every year in the next 5 years.
Let’s take a glimpse at some insider activity at Element Solutions Inc (NYSE:ESI) and observe the pattern. The earliest insider trade happened on 08/14/2019. Capps John Edward gathered a total of 10 thousand shares of the firm at average share price of $9. The total amount for the purchase was set at $90 thousand. On completing this exchange, the EVP, General Counsel & Sec. account balance was 301.74 thousand shares. The stock grew 27.44 percent from that insider purchase. On 08/13/2019, Benson Scot, President & COO, did a purchase of 10 thousand shares at a price of $9.37 per share. This increased 93.7 thousand shares to the insider’s fortune and the stock experienced a 22.41 percent rally in price since the news became public. This exchange saw 170.33 thousand shares get into the President & COO account.
On 08/08/2019, CEO Gliklich Benjamin recorded a purchase transaction valued at $71.55 thousand. The purchase at $9.54 a share has added 7.5 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed 20.23 percent increase since the transaction reporting date. The company insider is left with 99.01 thousand shares remaining in the account. SACHDEV RAKESH, who works as Director at the company, performed a sale of 28.76 thousand shares in a transaction worth $308.06 thousand. The disposal recorded on 06/11/2019 was priced at $10.71 per share. The stock price soared 7.1 percent since the transaction. SACHDEV RAKESH currently holds a stake of 714.07 thousand in ESI stock which is worth $7.93 million after the insider selling.
The stock is lingering around the initial support level of $11.01. After this, the following support is at the zone of $10.9. Up until the time the ESI stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 42.43 on the daily chart, and this may be a cause for concern. In case the price goes below $10.9 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $11.3 level may cause a pull-back move approaching $11.48 mark.
The industry ESI deals with has an average P/E of 23.6. Its P/B ratio is standing at 1.3X compared to the 3.4 industry average. It is additionally sporting a 1.6 on the Price-to-Sales ratio, compared to the industry’s P/S average of 1.9. Element Solutions Inc has a 43% gross profit margin, with its operating margin around 12.8%. Alongside this, the company’s net profit margin currently stands at 2.9%.