Koppers (NYSE:KOP) Shares Gap Down on Disappointing Earnings

Koppers Holdings Inc. (NYSE:KOP)’s share price gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $39.64, but opened at $29.47. Koppers shares last traded at $32.0350, with a volume of 39,030 shares traded.

The specialty chemicals company reported $0.77 EPS for the quarter, missing the consensus estimate of $1.37 by ($0.60). The firm had revenue of $499.10 million for the quarter, compared to analysts’ expectations of $518.60 million. Koppers had a negative net margin of 4.59% and a positive return on equity of 14.98%. The business’s quarterly revenue was up 2.8% compared to the same quarter last year. During the same period in the prior year, the business posted $1.21 EPS.

Koppers Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, December 14th. Stockholders of record on Friday, November 27th will be given a $0.09 dividend. The ex-dividend date of this dividend is Friday, November 27th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 1.1%. Koppers’s dividend payout ratio is currently -7.63%.

Analyst Upgrades and Downgrades

KOP has been the subject of a number of recent research reports. Wall Street Zen cut shares of Koppers from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 15th. Weiss Ratings cut shares of Koppers from a “hold (c+)” rating to a “sell (d+)” rating in a report on Tuesday, August 11th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $55.00.

Insiders Place Their Bets

In other Koppers news, insider James A. Sullivan sold 7,500 shares of the company’s stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $50.00, for a total transaction of $375,000.00. Following the transaction, the insider owned 82,898 shares in the company, valued at approximately $4,144,900. This represents a 8.30% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Leroy Ball sold 4,000 shares of the company’s stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $45.96, for a total transaction of $183,840.00. Following the transaction, the chief executive officer owned 429,555 shares in the company, valued at $19,742,347.80. This represents a 0.92% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 17,808 shares of company stock valued at $856,651 over the last quarter. Corporate insiders own 7.28% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the stock. State Street Corp lifted its position in Koppers by 7.0% during the second quarter. State Street Corp now owns 804,553 shares of the specialty chemicals company’s stock valued at $36,124,000 after purchasing an additional 52,289 shares during the period. Bank of New York Mellon Corp purchased a new stake in Koppers in the second quarter worth approximately $9,993,000. Bank of America Corp DE purchased a new stake in Koppers in the second quarter worth approximately $5,294,000. JB Capital Partners LP purchased a new stake in Koppers in the second quarter worth approximately $3,506,735. Finally, Sei Investments Co. grew its position in Koppers by 87.5% in the 1st quarter. Sei Investments Co. now owns 69,979 shares of the specialty chemicals company’s stock worth $2,707,000 after purchasing an additional 32,658 shares during the period. 92.75% of the stock is owned by hedge funds and other institutional investors.

Koppers Stock Performance

The company has a debt-to-equity ratio of 2.31, a quick ratio of 1.01 and a current ratio of 2.33. The firm has a market cap of $602.02 million, a P/E ratio of -6.74 and a beta of 1.23. The business’s 50-day simple moving average is $44.46 and its 200 day simple moving average is $41.68.

Koppers Company Profile

Koppers Holdings Inc (NYSE:KOP) is a global provider of treated wood products, carbon compounds and performance chemicals. The company serves infrastructure, industrial and utility markets with products designed to preserve, protect and extend the service life of wood and other materials.

Koppers operates through two primary business areas: Railroad and Utility Products and Services, and Performance Chemicals. Its offerings include treated railroad crossties, utility poles, pilings and other wood products, as well as wood preservatives and related treatment services.