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

RPM International Inc. (NYSE:RPM)’s stock price gapped up prior to trading on Wednesday following a better than expected earnings announcement. 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 changing hands.

The specialty chemicals company reported $1.89 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.83 by $0.06. RPM International had a net margin of 8.63% and a return on equity of 22.55%. The firm had revenue of $2.23 billion for the quarter, compared to the consensus estimate of $2.18 billion. During the same period in the prior year, the firm posted $1.72 earnings per share.

RPM International Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Tuesday, July 14th will be given a dividend of $0.54 per share. The ex-dividend date is Tuesday, July 14th. This represents a $2.16 dividend on an annualized basis and a dividend yield of 2.0%. RPM International’s dividend payout ratio (DPR) is 41.62%.

Analyst Upgrades and Downgrades

RPM has been the subject of a number of analyst reports. Wall Street Zen cut RPM International from a “buy” rating to a “hold” rating in a report on Saturday, July 4th. Morgan Stanley raised their price objective on RPM International from $118.00 to $121.00 and gave the company an “equal weight” rating in a report on Thursday, April 9th. Bank of America reduced their target price on RPM International from $128.00 to $125.00 and set a “buy” rating for the company in a research note on Thursday, April 9th. BMO Capital Markets decreased their target price on RPM International from $148.00 to $143.00 and set an “outperform” rating on the stock in a research report on Monday, July 6th. Finally, Royal Bank Of Canada lifted their price target on shares of RPM International from $126.00 to $130.00 and gave the company an “outperform” rating in a research note on Monday, April 13th. Eleven analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, RPM International currently has a consensus rating of “Moderate Buy” and a consensus price target of $127.00.

Hedge Funds Weigh In On RPM International

Several hedge funds and other institutional investors have recently made changes to their positions in RPM. PFA Pension Forsikringsaktieselskab acquired a new stake in shares of RPM International in the fourth quarter worth approximately $54,307,000. California State Teachers Retirement System raised its stake in RPM International by 14.5% in the 4th quarter. California State Teachers Retirement System now owns 394,860 shares of the specialty chemicals company’s stock valued at $41,065,000 after purchasing an additional 49,979 shares during the last quarter. Ameriprise Financial Inc. lifted its holdings in RPM International by 0.3% in the 2nd quarter. Ameriprise Financial Inc. now owns 339,258 shares of the specialty chemicals company’s stock valued at $37,260,000 after purchasing an additional 888 shares in the last quarter. Danske Bank A S lifted its holdings in RPM International by 13.7% in the 4th quarter. Danske Bank A S now owns 167,459 shares of the specialty chemicals company’s stock valued at $17,416,000 after purchasing an additional 20,176 shares in the last quarter. Finally, Life Cycle Investment Partners Ltd acquired a new stake in RPM International during the 4th quarter worth $16,175,000. Hedge funds and other institutional investors own 80.95% of the company’s stock.

RPM International Stock Performance

The company has a market cap of $13.75 billion, a price-to-earnings ratio of 20.74, a PEG ratio of 2.31 and a beta of 1.04. The firm’s 50 day simple moving average is $105.14 and its 200-day simple moving average is $106.25. The company has a debt-to-equity ratio of 0.81, a quick ratio of 1.44 and a current ratio of 2.28.

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.