UL Solutions (NYSE:ULS) Stock Price Down 9.2% – Should You Sell?

UL Solutions Inc. (NYSE:ULS)’s stock price was down 9.2% on Tuesday . The company traded as low as $83.63 and last traded at $82.7180. 143,174 shares were traded during trading, a decline of 85% from the average session volume of 927,823 shares. The stock had previously closed at $91.05.

Wall Street Analysts Forecast Growth

ULS has been the topic of a number of recent research reports. The Goldman Sachs Group reiterated a “neutral” rating on shares of UL Solutions in a report on Wednesday, May 6th. Citigroup increased their target price on shares of UL Solutions from $87.80 to $106.40 and gave the stock a “neutral” rating in a report on Thursday, May 7th. Raymond James Financial reaffirmed an “outperform” rating and issued a $115.00 target price on shares of UL Solutions in a research report on Wednesday, May 6th. UBS Group upgraded shares of UL Solutions from a “neutral” rating to a “buy” rating and set a $110.00 price target on the stock in a research note on Tuesday, July 14th. Finally, Weiss Ratings raised shares of UL Solutions from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, May 8th. Six investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $101.54.

UL Solutions Trading Down 12.5%

The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.16 and a current ratio of 1.16. The firm has a fifty day moving average price of $93.38 and a 200 day moving average price of $87.33. The company has a market cap of $16.07 billion, a price-to-earnings ratio of 46.93, a P/E/G ratio of 3.52 and a beta of 0.71.

UL Solutions (NYSE:ULS) last issued its earnings results on Tuesday, August 4th. The company reported $0.59 earnings per share for the quarter, topping analysts’ consensus estimates of $0.56 by $0.03. The business had revenue of $816.00 million for the quarter, compared to the consensus estimate of $813.62 million. UL Solutions had a net margin of 11.24% and a return on equity of 30.99%. The firm’s revenue for the quarter was up 5.2% on a year-over-year basis. During the same period in the previous year, the company earned $0.52 earnings per share. As a group, equities analysts predict that UL Solutions Inc. will post 2.13 EPS for the current fiscal year.

UL Solutions Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 8th. Stockholders of record on Friday, May 29th were paid a dividend of $0.145 per share. The ex-dividend date was Friday, May 29th. This represents a $0.58 annualized dividend and a dividend yield of 0.7%. UL Solutions’s payout ratio is currently 33.92%.

Insider Buying and Selling

In related news, EVP Alberto Uggetti sold 6,100 shares of the firm’s stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $100.00, for a total value of $610,000.00. Following the completion of the sale, the executive vice president directly owned 10,307 shares in the company, valued at approximately $1,030,700. This trade represents a 37.18% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CAO Karen K. Pepping sold 725 shares of UL Solutions stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $97.74, for a total value of $70,861.50. Following the transaction, the chief accounting officer owned 8,082 shares of the company’s stock, valued at $789,934.68. The trade was a 8.23% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 53,205 shares of company stock worth $5,315,675 in the last 90 days. 1.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of ULS. Jefferies Financial Group Inc. boosted its stake in shares of UL Solutions by 543.1% in the fourth quarter. Jefferies Financial Group Inc. now owns 192,915 shares of the company’s stock valued at $15,213,000 after buying an additional 162,915 shares during the period. Legal & General Group Plc increased its stake in UL Solutions by 78.6% during the 4th quarter. Legal & General Group Plc now owns 103,331 shares of the company’s stock worth $8,149,000 after acquiring an additional 45,467 shares during the period. Geode Capital Management LLC raised its holdings in UL Solutions by 21.9% in the 4th quarter. Geode Capital Management LLC now owns 1,282,676 shares of the company’s stock valued at $101,174,000 after acquiring an additional 230,660 shares in the last quarter. Yousif Capital Management LLC acquired a new stake in shares of UL Solutions during the 4th quarter worth $1,646,000. Finally, Thrivent Financial for Lutherans grew its holdings in shares of UL Solutions by 9,024.5% during the 4th quarter. Thrivent Financial for Lutherans now owns 337,881 shares of the company’s stock worth $26,645,000 after purchasing an additional 334,178 shares in the last quarter.

About UL Solutions

UL Solutions (NYSE: ULS) is a global safety science company that provides testing, inspection, certification, advisory and digital solutions designed to help organizations manage risk, ensure regulatory compliance and drive innovation. With roots dating back to 1894 when it was founded as Underwriters’ Electrical Bureau, the company rebranded as UL Solutions following its initial public offering in 2022. Headquartered in Northbrook, Illinois, UL Solutions operates independently to serve a broad range of industries with an emphasis on product safety, performance and sustainability.

The company’s core services include standards development, product testing and certification for sectors such as building products, consumer electronics, automotive, life sciences, energy and industrial equipment.