Element Solutions Inc (ESI) hit an intraday high Tuesday at $11.61. The shares finished at $11.4, after trading as low as $11.36 earlier in the session. It rose 0.18% in recent trade and currently has a stock-market value of $3.25B. Trading activity significantly improved as the volume at ready counter increased to 3,727,172 shares versus 3,456,435 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,952,604 shares. The stock is now 25.41% above against its bear-market low of $9.09 on April 03, 2018. It has retreated -18.77% since it’s 52-week high of $13.54 reached in August. Now the market price is up 15.04% on the year and up 10.36% YTD.
ESI’s 50 day simple moving average (SMA 50) price is $11.05 and its 200-day simple moving average (SMA 200) price is $11.59. The company’s stock currently has a total float of 257.92M shares. Its weekly volatility is hovering around 3.24% and felt 3.72% volatility in price over a month. On the upside, the share price will test short term resistance at around $11.55. On a downside, the stock is likely to find some support, which begins at $11.3. The failure to get near-term support could push it to $11.21.
Separately, it has been reported that multiple insider activity took place at Element Solutions Inc (ESI). Pershing Square Capital Manage sold 40,451,506 shares in transaction occurred on 2019/02/04. After making this transaction, the owns a direct stake of 474,000,000 shares. On 2018/12/21 Franklin Martin E, Director, 10% Owner at ESI, dumped 2,419,258 shares at an average price of $9.91 per share. The selling total is valued at $177,000,000.
EVP, General Counsel & Sec., Capps John Edward had invested in 50,000 shares for $254,333 through a trade on 2018/12/20. Following this activity, the insider holds 500,000 shares worth $2,899,396 as of recent close. Wall Street’s most bullish Element Solutions Inc (NYSE:ESI) analysts are predicting the share price to blow past $15 per share during the next 12 months. The current median share price forecast by them is $13, suggesting that the stock could increase 14.04% in that time frame. The average price target of $13.33 calls for a nearly 16.93% increase in the stock price.
Moreover, it trades for 13.73 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.61x price/book and 1.27x price/sales. Compared to others, Element Solutions Inc is in a different league with regards to profitability, having net margins of -12.6%. To put some perspective around this, the industry’s average net margin is 9.61%. ESI’s ROE is -12.7%, which is also considerably worse than the industry’s ROE of 13.46%. It’s also very liquid in the near term, with a current ratio of 2.2. The stock has a debt/capital of 0.
ESI last reported earnings on April 29, 2016 when it released Sep-18 results that receded expectations. The company raked in $0.04 per share, -99.56% change on the same period last year. That was worse than consensus for $0.04. Revenue for the recent quarter stood at $488.5 million, down -46% on last year and below the $504.63 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $459.13 million to $481.72 million, which should be compared with $0 generated last year. EPS is seen in a range of $0.21 to $0.23, against the 0 reported a year ago.