RPM International (NYSE:RPM) Stock Price Down 5.2% on Disappointing Earnings

RPM International Inc. (NYSE:RPM) dropped 5.2% during trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $100.10 and last traded at $101.19. Approximately 158,731 shares traded hands during mid-day trading, a decline of 75% from the average daily volume of 640,269 shares. The stock had previously closed at $106.70.

The specialty chemicals company reported $0.35 earnings per share for the quarter, missing the consensus estimate of $0.50 by ($0.15). The company had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.51 billion. RPM International had a return on equity of 26.76% and a net margin of 8.89%. The business’s revenue for the quarter was down 3.0% on a year-over-year basis. During the same quarter last year, the firm earned $0.52 EPS.

RPM International Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 30th. Investors of record on Thursday, April 17th will be given a $0.51 dividend. The ex-dividend date of this dividend is Thursday, April 17th. This represents a $2.04 dividend on an annualized basis and a yield of 1.93%. RPM International’s payout ratio is 40.32%.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on RPM. StockNews.com lowered shares of RPM International from a “buy” rating to a “hold” rating in a research note on Tuesday, February 25th. JPMorgan Chase & Co. cut their price objective on shares of RPM International from $126.00 to $124.00 and set a “neutral” rating on the stock in a report on Wednesday, January 8th. Mizuho lowered their target price on shares of RPM International from $150.00 to $140.00 and set an “outperform” rating for the company in a report on Wednesday, January 8th. Wells Fargo & Company cut their price target on RPM International from $140.00 to $116.00 and set an “overweight” rating on the stock in a research note on Wednesday. Finally, Evercore ISI upgraded RPM International to a “strong-buy” rating in a research report on Tuesday, January 21st. Six equities research analysts have rated the stock with a hold rating, five have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, RPM International presently has an average rating of “Moderate Buy” and an average price target of $125.10.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RPM. EverSource Wealth Advisors LLC raised its position in shares of RPM International by 55.3% during the fourth quarter. EverSource Wealth Advisors LLC now owns 236 shares of the specialty chemicals company’s stock worth $29,000 after purchasing an additional 84 shares during the period. Crews Bank & Trust bought a new stake in RPM International during the 4th quarter worth approximately $37,000. Farther Finance Advisors LLC raised its holdings in RPM International by 58.7% during the 4th quarter. Farther Finance Advisors LLC now owns 419 shares of the specialty chemicals company’s stock worth $52,000 after buying an additional 155 shares during the period. Fairway Wealth LLC raised its holdings in RPM International by 829.8% during the 4th quarter. Fairway Wealth LLC now owns 437 shares of the specialty chemicals company’s stock worth $54,000 after buying an additional 390 shares during the period. Finally, Creative Financial Designs Inc. ADV lifted its stake in RPM International by 148.8% in the fourth quarter. Creative Financial Designs Inc. ADV now owns 535 shares of the specialty chemicals company’s stock valued at $66,000 after buying an additional 320 shares in the last quarter. 80.95% of the stock is currently owned by institutional investors.

RPM International Price Performance

The company has a debt-to-equity ratio of 0.74, a current ratio of 2.23 and a quick ratio of 1.46. The company’s 50-day moving average price is $117.80 and its 200-day moving average price is $125.53. The company has a market cap of $13.60 billion, a P/E ratio of 20.90, a P/E/G ratio of 1.97 and a beta of 1.06.

RPM International Company Profile

RPM International Inc manufactures and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. It offers waterproofing, coating, and traditional roofing systems; sealants, air barriers, tapes, and foams; residential home weatherization systems; roofing and building maintenance services; sealing and bonding, subfloor preparation, flooring, and glazing solutions; resin flooring systems, polyurethane, MMA waterproof, epoxy floor paint and coatings, concrete repair, and protection products; fire stopping and intumescent steel coating, and manufacturing industry solutions; rolled asphalt roofing materials and chemical admixtures; concrete and masonry admixtures, concrete fibers, curing and sealing compounds, structural grouts and mortars, epoxy adhesives, injection resins, polyurethane foams, floor hardeners and toppings, joint fillers, industrial and architectural coatings, decorative color/stains/stamps, and restoration materials; insulated building cladding materials; and concrete form wall systems.