RPM International (RPM) Shares Gap Up After Strong Earnings

Shares of RPM International Inc. (NYSE:RPM) gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $45.54, but opened at $47.66. RPM International shares last traded at $48.72, with a volume of 2173229 shares changing hands.

The specialty chemicals company reported $0.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.18 by $0.11. RPM International had a net margin of 6.80% and a return on equity of 25.05%. The firm had revenue of $1.10 billion during the quarter, compared to the consensus estimate of $1.09 billion. During the same period last year, the firm posted $0.14 EPS. The firm’s quarterly revenue was up 7.8% on a year-over-year basis.

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The company also recently declared a quarterly dividend, which will be paid on Monday, April 30th. Investors of record on Tuesday, April 17th will be issued a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a yield of 2.72%. The ex-dividend date is Monday, April 16th. RPM International’s dividend payout ratio is currently 51.82%.

RPM has been the subject of several analyst reports. Zacks Investment Research downgraded shares of RPM International from a “hold” rating to a “sell” rating in a report on Tuesday, December 12th. BMO Capital Markets initiated coverage on shares of RPM International in a report on Tuesday, March 27th. They set an “outperform” rating and a $60.00 price target for the company. JPMorgan Chase downgraded shares of RPM International from a “neutral” rating to an “underweight” rating and cut their price target for the company from $52.00 to $47.00 in a report on Friday, March 16th. Gabelli reissued a “buy” rating on shares of RPM International in a report on Wednesday, March 28th. Finally, Vertical Research raised shares of RPM International from a “hold” rating to a “buy” rating in a report on Wednesday, February 14th. Two research analysts have rated the stock with a sell rating, five have issued a hold rating and four have assigned a buy rating to the company’s stock. RPM International has an average rating of “Hold” and an average price target of $55.14.

In other RPM International news, Chairman Frank C. Sullivan sold 35,000 shares of the business’s stock in a transaction dated Wednesday, January 17th. The shares were sold at an average price of $52.38, for a total value of $1,833,300.00. Following the completion of the transaction, the chairman now directly owns 1,188,489 shares of the company’s stock, valued at $62,253,053.82. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, SVP Edward W. Moore sold 2,578 shares of the business’s stock in a transaction dated Tuesday, January 9th. The stock was sold at an average price of $53.79, for a total transaction of $138,670.62. Following the completion of the transaction, the senior vice president now directly owns 98,417 shares of the company’s stock, valued at $5,293,850.43. The disclosure for this sale can be found here. Insiders own 2.10% of the company’s stock.

Hedge funds and other institutional investors have recently made changes to their positions in the business. Elefante Mark B bought a new position in shares of RPM International in the fourth quarter worth about $213,000. Opus Capital Group LLC bought a new position in shares of RPM International in the fourth quarter worth about $219,000. Logan Capital Management Inc. bought a new position in shares of RPM International in the fourth quarter worth about $230,000. Jump Trading LLC bought a new position in shares of RPM International in the fourth quarter worth about $299,000. Finally, Flinton Capital Management LLC raised its stake in shares of RPM International by 24.1% in the fourth quarter. Flinton Capital Management LLC now owns 9,728 shares of the specialty chemicals company’s stock worth $510,000 after acquiring an additional 1,888 shares during the last quarter. 75.94% of the stock is owned by institutional investors.

The company has a current ratio of 2.23, a quick ratio of 1.42 and a debt-to-equity ratio of 1.17. The stock has a market capitalization of $6,370.52, a P/E ratio of 19.07, a P/E/G ratio of 1.71 and a beta of 1.45.

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RPM International Company Profile

RPM International Inc manufactures, markets, and sells specialty chemical products for industrial, specialty, and consumer markets worldwide. Its Industrial segment offers waterproofing, coatings, and institutional roofing systems; sealants, air barriers, tapes, and foams; residential home weatherization systems; roofing and building maintenance and related services; sealing and bonding solutions; flooring and in-plant glazing solutions; passive fire protection and manufacturing industry solutions; polymer flooring systems; and fiberglass reinforced plastic gratings and shapes.

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