KMG Chemicals (KMG) Cut to Hold at Zacks Investment Research

Zacks Investment Research cut shares of KMG Chemicals (NYSE:KMG) from a buy rating to a hold rating in a research note published on Wednesday.

According to Zacks, “KMG Chemicals manufactures, markets and distributes specialty, niche chemicals. The company manufactures, markets and distributes three wood preserving chemicals, pentachlorophenol, creosote and sodium pentachlorophenate, to industrial customers engaged in the wood preserving business. The company’s customers use these preservatives to treat wood and supply the treated wood products to end-users in a variety of industries, principally the railroad, utility and construction industries. “

A number of other research firms have also commented on KMG. Goldman Sachs Group began coverage on shares of KMG Chemicals in a research note on Monday, January 22nd. They issued a neutral rating and a $73.00 price objective on the stock. KeyCorp reiterated a buy rating and set a $70.00 price target (up from $63.00) on shares of KMG Chemicals in a research note on Wednesday, December 13th. Finally, ValuEngine lowered shares of KMG Chemicals from a buy rating to a hold rating in a research note on Friday, December 1st. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and two have issued a buy rating to the company. The company currently has an average rating of Hold and a consensus price target of $71.00.

KMG Chemicals (NYSE KMG) opened at $61.86 on Wednesday. The company has a quick ratio of 1.92, a current ratio of 2.87 and a debt-to-equity ratio of 0.99. The company has a market cap of $925.72, a price-to-earnings ratio of 32.39 and a beta of 0.35. KMG Chemicals has a one year low of $36.41 and a one year high of $68.13.

KMG Chemicals (NYSE:KMG) last posted its quarterly earnings data on Monday, December 11th. The specialty chemicals company reported $0.83 EPS for the quarter, beating analysts’ consensus estimates of $0.63 by $0.20. The company had revenue of $110.70 million for the quarter, compared to analyst estimates of $106.60 million. KMG Chemicals had a net margin of 6.46% and a return on equity of 15.41%. KMG Chemicals’s quarterly revenue was up 44.7% on a year-over-year basis. equities research analysts anticipate that KMG Chemicals will post 3.17 EPS for the current year.

In other news, major shareholder David L. Hatcher sold 3,000 shares of the business’s stock in a transaction dated Monday, November 20th. The shares were sold at an average price of $52.18, for a total transaction of $156,540.00. Following the transaction, the insider now directly owns 1,433,097 shares in the company, valued at $74,779,001.46. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, major shareholder David L. Hatcher sold 6,000 shares of the business’s stock in a transaction dated Friday, December 1st. The stock was sold at an average price of $54.34, for a total transaction of $326,040.00. Following the transaction, the insider now owns 1,412,097 shares in the company, valued at $76,733,350.98. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 657,000 shares of company stock worth $40,906,590. Company insiders own 6.10% of the company’s stock.

A number of institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. grew its position in KMG Chemicals by 44.5% during the fourth quarter. BlackRock Inc. now owns 836,301 shares of the specialty chemicals company’s stock worth $55,262,000 after buying an additional 257,589 shares during the period. Wells Fargo & Company MN grew its position in KMG Chemicals by 110.6% during the fourth quarter. Wells Fargo & Company MN now owns 658,289 shares of the specialty chemicals company’s stock worth $43,500,000 after buying an additional 345,726 shares during the period. Dimensional Fund Advisors LP grew its position in KMG Chemicals by 7.6% during the second quarter. Dimensional Fund Advisors LP now owns 608,368 shares of the specialty chemicals company’s stock worth $29,609,000 after buying an additional 43,214 shares during the period. Renaissance Technologies LLC grew its position in KMG Chemicals by 22.4% during the fourth quarter. Renaissance Technologies LLC now owns 514,500 shares of the specialty chemicals company’s stock worth $33,998,000 after buying an additional 94,300 shares during the period. Finally, Lazard Asset Management LLC acquired a new position in KMG Chemicals during the fourth quarter worth about $26,227,000. Institutional investors own 58.26% of the company’s stock.

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About KMG Chemicals

KMG Chemicals, Inc manufactures, formulates and globally distributes specialty chemicals. The Company operates businesses selling electronic chemicals, industrial wood treating chemicals, and industrial valve lubricants and sealants. The Company operates through two segments: Electronic chemicals and Other chemicals.

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