Axalta Coating Systems Ltd. (NYSE: AXTA) stock fell -2.29% on Friday to $23.49 against a previous-day closing price of $24.04. With 1.6 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.1 million shares. During the session, the Specialty Chemicals company that operates in wider Basic Materials sector, reached to the highest price of $24.20 whereas the lowest price it dropped to was $23.47. The 52-week range on AXTA shows that it touched its highest point at $34.12 and its lowest point at $21.44 during that stretch. It currently has a 1-year price target of $30.37. Beta for the stock currently stands at 1.32.
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 AXTA was down-trending over the past week, with a drop of -5.81%, but this was down by -6.53% over a month. Three-month performance surged to 0.90% while six-month performance fell -5.21%. The stock lost -17.84% in the past year, while it has lost -29.08% so far this year. A look at the trailing 12-month EPS for AXTA yields 0.92 with Next year EPS estimates of 2.10. For the next quarter, that number is 0.42. This implies an EPS growth rate of 120.90% for this year and 28.98% for next year. EPS is expected to grow by 11.30% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 48.30%.
Float and Shares Shorts:
At present, 221.00 million AXTA shares are outstanding with a float of 219.02 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.74 million, which was 2.59% higher than short shares on Jun 14, 2022. In addition to Mr. Robert W. Bryant as the firm’s CEO, Pres & Director, Mr. Sean M. Lannon serves as its Sr. VP & CFO.
Through their ownership of 104.12% of AXTA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 60.64% of AXTA, in contrast to 45.37% held by mutual funds. Shares owned by individuals account for 30.20%. As the largest shareholder in AXTA with 9.14% of the stake, The Vanguard Group, Inc. holds 20,161,217 shares worth 20,161,217. A second-largest stockholder of AXTA, Massachusetts Financial Services, holds 16,944,061 shares, controlling over 7.68% of the firm’s shares. Barrow, Hanley, Mewhinney & Strau is the third largest shareholder in AXTA, holding 15,836,575 shares or 7.18% stake. With a 2.97% stake in AXTA, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 6,554,052 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.54% of AXTA stock, is the second-largest Mutual Fund holder. It holds 5,606,379 shares valued at 144.36 million. John Hancock III – Disciplined Va holds 1.97% of the stake in AXTA, owning 4,340,806 shares worth 111.78 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AXTA since 19 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 8 believe that the stock is worth HOLDING, 2 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 AXTA analysts setting a high price target of $38.00 and a low target of $25.00, the average target price over the next 12 months is $29.95. Based on these targets, AXTA could surge 61.77% to reach the target high and rise by 6.43% to reach the target low. Reaching the average price target will result in a growth of 27.5% 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. AXTA will report FY 2022 earnings on 02/01/2023. Analysts have provided yearly estimates in a range of $1.79 being high and $1.55 being low. For AXTA, this leads to a yearly average estimate of $1.63. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Axalta Coating Systems Ltd. surprised analysts by $0.02 when it reported $0.41 EPS against a consensus estimate of $0.39. The surprise factor in the prior quarter was $0.05. Based on analyst estimates, the high estimate for the next quarter is $0.45 and the low estimate is $0.37. The average estimate for the next quarter is thus $0.42.
Summary of Insider Activity:
Insiders traded AXTA stock several times over the past three months with 1 Buys and 1 Sells. In these transactions, 3,052 shares were bought while 1,297 shares were sold. The number of buy transactions has increased to 40 while that of sell transactions has risen to 29 over the past year. The total number of shares bought during that period was 258,667 while 96,767 shares were sold.