Univar Solutions Inc. (NYSE: UNVR) stock fell -1.99% on Friday to $23.64 against a previous-day closing price of $24.12. With 1.32 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.27 million shares. During the session, the Chemicals company that operates in wider Basic Materials sector, reached to the highest price of $24.50 whereas the lowest price it dropped to was $23.59. The 52-week range on UNVR shows that it touched its highest point at $34.00 and its lowest point at $22.53 during that stretch. It currently has a 1-year price target of $36.11. Beta for the stock currently stands at 1.68.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of UNVR was down-trending over the past week, with a drop of -6.34%, but this was down by -9.08% over a month. Three-month performance dropped to -9.53% while six-month performance fell -30.02%. The stock gained 2.78% in the past year, while it has lost -16.61% so far this year. A look at the trailing 12-month EPS for UNVR yields 3.41 with Next year EPS estimates of 3.06. For the next quarter, that number is 0.78. This implies an EPS growth rate of 762.60% for this year and -10.25% for next year. EPS is expected to grow by 17.28% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 49.30%.
Float and Shares Shorts:
At present, 168.40 million UNVR shares are outstanding with a float of 165.37 million shares on hand for trading. On Aug 30, 2022, short shares totaled 3.26 million, which was 1.95% higher than short shares on Jul 28, 2022. In addition to Mr. David C. Jukes as the firm’s Pres, CEO & Director, Mr. Nicholas William Alexos CPA serves as its Exec. VP & CFO.
Through their ownership of 104.32% of UNVR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 64.81% of UNVR, in contrast to 51.90% held by mutual funds. Shares owned by individuals account for 37.36%. As the largest shareholder in UNVR with 10.20% of the stake, The Vanguard Group, Inc. holds 17,017,700 shares worth 17,017,700. A second-largest stockholder of UNVR, BlackRock Fund Advisors, holds 13,025,011 shares, controlling over 7.81% of the firm’s shares. Fidelity Management & Research Co is the third largest shareholder in UNVR, holding 12,881,484 shares or 7.72% stake. With a 4.49% stake in UNVR, the EdgePoint Global Portfolio is the largest stakeholder. A total of 7,492,584 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 3.01% of UNVR stock, is the second-largest Mutual Fund holder. It holds 5,015,478 shares valued at 126.49 million. iShares Core S&P Mid Cap ETF holds 2.99% of the stake in UNVR, owning 4,982,962 shares worth 125.67 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, UNVR reported revenue of $3.02B and operating income of $240.80M. Over the past year, revenue came in at $10.89B while operating income stood at $788.70M. It generated $162.90M net income for the quarter, which came to $584.90M over the last twelve months. The EBITDA in the recently reported quarter was $289.60M and diluted EPS was $0.96. EBITDA for the full year was $1.09B.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for UNVR since 8 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With UNVR analysts setting a high price target of $43.00 and a low target of $32.00, the average target price over the next 12 months is $35.63. Based on these targets, UNVR could surge 81.9% to reach the target high and rise by 35.36% to reach the target low. Reaching the average price target will result in a growth of 50.72% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. UNVR will report FY 2022 earnings on 02/22/2023. Analysts have provided yearly estimates in a range of $3.48 being high and $3.25 being low. For UNVR, this leads to a yearly average estimate of $3.40. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Univar Solutions Inc. surprised analysts by $0.09 when it reported $1.00 EPS against a consensus estimate of $0.91. The surprise factor in the prior quarter was $0.24. Based on analyst estimates, the high estimate for the next quarter is $0.81 and the low estimate is $0.72. The average estimate for the next quarter is thus $0.77.
Summary of Insider Activity:
Insiders traded UNVR stock several times over the past three months with 3 Buys and 0 Sells. In these transactions, 30,006 shares were bought while 0 shares were sold. The number of buy transactions has increased to 58 while that of sell transactions has risen to 42 over the past year. The total number of shares bought during that period was 817,581 while 625,699 shares were sold.