Axalta Coating Systems Ltd. (NYSE: AXTA) stock jumped 1.42% on Thursday to $27.18 against a previous-day closing price of $26.80. With 2.1 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.23 million shares. During the session, the Specialty Chemicals company that operates in wider Basic Materials sector, reached to the highest price of $27.22 whereas the lowest price it dropped to was $26.78. The 52-week range on AXTA shows that it touched its highest point at $33.68 and its lowest point at $20.66 during that stretch. It currently has a 1-year price target of $34.13. Beta for the stock currently stands at 1.47.
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 -0.84%, but this was down by -2.58% over a month. Three-month performance dropped to -16.37% while six-month performance fell -2.30%. The stock gained 7.09% in the past year, while it has gained 6.71% so far this year. A look at the trailing 12-month EPS for AXTA yields 1.02 with Next year EPS estimates of 1.80. For the next quarter, that number is 0.38. This implies an EPS growth rate of -24.30% for this year and 23.44% for next year. EPS is expected to grow by 12.56% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 8.00%.
Float and Shares Shorts:
At present, 221.60 million AXTA shares are outstanding with a float of 220.10 million shares on hand for trading. On Aug 30, 2023, short shares totaled 6.27 million, which was 2.83% higher than short shares on Jul 30, 2023. In addition to Mr. Brian A. Berube as the firm’s Sr. VP, Gen. Counsel & Corp. Sec., Mr. Hadi H. Awada serves as its Sr. VP of Global Mobility Coatings.
Through their ownership of 106.91% of AXTA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 60.16% of AXTA, in contrast to 43.10% held by mutual funds. Shares owned by individuals account for 30.22%. As the largest shareholder in AXTA with 9.76% of the stake, The Vanguard Group, Inc. holds 21,618,042 shares worth 21,618,042. A second-largest stockholder of AXTA, BlackRock Fund Advisors, holds 17,332,180 shares, controlling over 7.82% of the firm’s shares. Barrow, Hanley, Mewhinney & Strau is the third largest shareholder in AXTA, holding 15,656,433 shares or 7.07% stake. With a 3.21% stake in AXTA, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 7,113,274 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.11% of AXTA stock, is the second-largest Mutual Fund holder. It holds 6,878,932 shares valued at 220.13 million. Vanguard Small Cap Index Fund holds 2.59% of the stake in AXTA, owning 5,744,933 shares worth 183.84 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, 2023, AXTA reported revenue of $1.23B and operating income of $103.60M. The EBITDA in the recently reported quarter was $178.60M and diluted EPS was $0.20.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AXTA since 0 analysts follow the stock currently. 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 $29.00, the average target price over the next 12 months is $34.17. Based on these targets, AXTA could surge 39.81% to reach the target high and rise by 6.7% to reach the target low. Reaching the average price target will result in a growth of 25.72% 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.
Summary of Insider Activity:
Insiders traded AXTA stock several times over the past three months with 8 Buys and 7 Sells. In these transactions, 158,248 shares were bought while 52,308 shares were sold. The number of buy transactions has increased to 41 while that of sell transactions has risen to 30 over the past year. The total number of shares bought during that period was 504,349 while 137,329 shares were sold.