Ashland (NYSE:ASH) Shares Gap Down on Disappointing Earnings

Ashland Inc. (NYSE:ASH) shares gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $54.39, but opened at $49.25. Ashland shares last traded at $50.25, with a volume of 100,535 shares changing hands.

The basic materials company reported $0.99 EPS for the quarter, missing analysts’ consensus estimates of $1.10 by ($0.11). The firm had revenue of $479.00 million during the quarter, compared to the consensus estimate of $514.79 million. Ashland had a negative net margin of 1.12% and a positive return on equity of 7.41%. The business’s revenue was down 16.7% on a year-over-year basis. During the same period last year, the business earned $1.27 EPS.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on ASH shares. Wells Fargo & Company cut Ashland from an “overweight” rating to an “equal weight” rating in a research report on Thursday. UBS Group cut their price target on Ashland from $85.00 to $74.00 and set a “buy” rating for the company in a report on Thursday. Seaport Res Ptn downgraded shares of Ashland from a “strong-buy” rating to a “hold” rating in a report on Wednesday, March 5th. Mizuho set a $60.00 target price on shares of Ashland in a research note on Tuesday, April 15th. Finally, JPMorgan Chase & Co. raised shares of Ashland from a “neutral” rating to an “overweight” rating and lifted their target price for the stock from $68.00 to $71.00 in a report on Wednesday, March 26th. Four research analysts have rated the stock with a hold rating and two have issued a buy rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $69.40.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Versant Capital Management Inc bought a new stake in shares of Ashland in the fourth quarter valued at about $33,000. Wilmington Savings Fund Society FSB acquired a new stake in Ashland in the 3rd quarter worth about $38,000. Farther Finance Advisors LLC boosted its holdings in Ashland by 2,736.0% in the 1st quarter. Farther Finance Advisors LLC now owns 709 shares of the basic materials company’s stock valued at $41,000 after purchasing an additional 684 shares during the period. UMB Bank n.a. grew its position in shares of Ashland by 212.4% during the 1st quarter. UMB Bank n.a. now owns 706 shares of the basic materials company’s stock worth $42,000 after purchasing an additional 480 shares in the last quarter. Finally, Allworth Financial LP increased its holdings in shares of Ashland by 63.9% during the first quarter. Allworth Financial LP now owns 834 shares of the basic materials company’s stock worth $49,000 after purchasing an additional 325 shares during the period. 93.95% of the stock is owned by institutional investors and hedge funds.

Ashland Trading Up 0.8 %

The company has a market capitalization of $2.33 billion, a price-to-earnings ratio of -74.89, a P/E/G ratio of 1.14 and a beta of 0.70. The company has a debt-to-equity ratio of 0.51, a current ratio of 2.52 and a quick ratio of 1.27. The business’s 50-day moving average price is $54.57 and its two-hundred day moving average price is $67.37.

Ashland Company Profile

Ashland Inc provides additives and specialty ingredients in the North and Latin America, Europe, Asia Pacific, and internationally. It operates through Life Sciences, Personal Care, Specialty Additives, and Intermediates segments. The Life Sciences segment offers pharmaceutical solutions, including controlled release polymers, disintegrants, tablet coatings, thickeners, solubilizers, and tablet binders; nutrition solutions, such as thickeners, stabilizers, emulsifiers, and additives; and nutraceutical solutions comprising products for weight management, joint comfort, stomach and intestinal health, sports nutrition, and general wellness, as well as custom formulation, toll processing, and particle engineering solutions.