PPG Industries (NYSE:PPG) Shares Gap Down Following Weak Earnings

PPG Industries, Inc. (NYSE:PPG)’s share price gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $122.75, but opened at $115.00. PPG Industries shares last traded at $116.56, with a volume of 373,291 shares changing hands.

The specialty chemicals company reported $1.61 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.65 by ($0.04). PPG Industries had a net margin of 8.24% and a return on equity of 23.63%.

PPG Industries Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 12th. Investors of record on Friday, February 21st will be paid a $0.68 dividend. The ex-dividend date is Friday, February 21st. This represents a $2.72 annualized dividend and a yield of 2.36%. PPG Industries’s dividend payout ratio (DPR) is currently 43.11%.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on PPG. JPMorgan Chase & Co. lowered their target price on PPG Industries from $155.00 to $145.00 and set an “overweight” rating for the company in a report on Friday, October 18th. Mizuho lowered their price objective on shares of PPG Industries from $160.00 to $150.00 and set an “outperform” rating for the company in a research note on Thursday, October 17th. StockNews.com cut shares of PPG Industries from a “strong-buy” rating to a “buy” rating in a report on Friday, December 20th. Citigroup reduced their price target on shares of PPG Industries from $150.00 to $145.00 and set a “buy” rating for the company in a report on Wednesday, December 18th. Finally, UBS Group dropped their price objective on shares of PPG Industries from $128.00 to $126.00 and set a “neutral” rating on the stock in a research note on Friday. Seven equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. According to MarketBeat.com, PPG Industries presently has a consensus rating of “Moderate Buy” and a consensus price target of $148.00.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Legend Financial Advisors Inc. purchased a new stake in shares of PPG Industries during the fourth quarter worth about $27,000. Pin Oak Investment Advisors Inc. grew its position in PPG Industries by 465.1% during the 3rd quarter. Pin Oak Investment Advisors Inc. now owns 243 shares of the specialty chemicals company’s stock worth $32,000 after purchasing an additional 200 shares during the last quarter. Capital Performance Advisors LLP acquired a new position in PPG Industries during the 3rd quarter valued at approximately $34,000. Albion Financial Group UT purchased a new position in shares of PPG Industries in the fourth quarter worth $38,000. Finally, Hara Capital LLC acquired a new stake in shares of PPG Industries during the third quarter worth $40,000. 81.86% of the stock is owned by institutional investors and hedge funds.

PPG Industries Stock Down 5.9 %

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 business’s fifty day moving average price is $121.25 and its two-hundred day moving average price is $124.56. The stock has a market capitalization of $26.79 billion, a PE ratio of 18.30, a price-to-earnings-growth ratio of 1.94 and a beta of 1.24.

PPG Industries Company Profile

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.