Ashland (NYSE:ASH) Shares Gap Up – Should You Buy?

Ashland Inc. (NYSE:ASH) shares gapped up before the market opened on Wednesday . The stock had previously closed at $56.93, but opened at $59.01. Ashland shares last traded at $60.27, with a volume of 142,636 shares.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the stock. UBS Group reduced their target price on shares of Ashland from $95.00 to $93.00 and set a “buy” rating for the company in a research report on Wednesday, January 29th. Wells Fargo & Company cut their price objective on shares of Ashland from $90.00 to $80.00 and set an “overweight” rating for the company in a report on Thursday, January 30th. StockNews.com lowered Ashland from a “buy” rating to a “hold” rating in a research report on Thursday, February 6th. JPMorgan Chase & Co. upgraded Ashland from a “neutral” rating to an “overweight” rating and lifted their price objective for the stock from $68.00 to $71.00 in a research report on Wednesday. Finally, Seaport Res Ptn downgraded Ashland from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, March 5th. Three research analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $87.60.

Ashland Stock Up 6.5 %

The company has a quick ratio of 1.27, a current ratio of 2.52 and a debt-to-equity ratio of 0.51. The company has a market capitalization of $2.86 billion, a PE ratio of -91.90, a price-to-earnings-growth ratio of 1.14 and a beta of 0.89. The firm has a 50-day moving average of $63.22 and a two-hundred day moving average of $74.09.

Ashland (NYSE:ASH) last issued its quarterly earnings data on Tuesday, January 28th. The basic materials company reported $0.28 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.79 by ($0.51). Ashland had a positive return on equity of 7.41% and a negative net margin of 1.12%. During the same period last year, the company earned $0.45 EPS. Equities research analysts predict that Ashland Inc. will post 4.27 earnings per share for the current fiscal year.

Ashland Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Saturday, March 15th. Stockholders of record on Saturday, March 1st were given a dividend of $0.405 per share. The ex-dividend date of this dividend was Friday, February 28th. This represents a $1.62 annualized dividend and a dividend yield of 2.67%. Ashland’s dividend payout ratio is currently -245.45%.

Insider Activity at Ashland

In other Ashland news, CEO Guillermo Novo purchased 31,294 shares of the business’s stock in a transaction on Friday, January 31st. The shares were bought at an average cost of $64.24 per share, for a total transaction of $2,010,326.56. Following the completion of the purchase, the chief executive officer now directly owns 31,294 shares of the company’s stock, valued at approximately $2,010,326.56. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 1.02% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Raymond James Trust N.A. increased its position in shares of Ashland by 5.5% during the third quarter. Raymond James Trust N.A. now owns 3,104 shares of the basic materials company’s stock worth $270,000 after acquiring an additional 163 shares during the period. Citigroup Inc. raised its position in Ashland by 465.0% in the 3rd quarter. Citigroup Inc. now owns 42,287 shares of the basic materials company’s stock valued at $3,678,000 after purchasing an additional 34,802 shares in the last quarter. Dynamic Technology Lab Private Ltd boosted its stake in shares of Ashland by 83.7% in the 3rd quarter. Dynamic Technology Lab Private Ltd now owns 18,987 shares of the basic materials company’s stock valued at $1,651,000 after buying an additional 8,650 shares during the period. Quantbot Technologies LP acquired a new position in shares of Ashland during the third quarter worth about $5,930,000. Finally, BNP Paribas Financial Markets increased its stake in shares of Ashland by 88.6% during the third quarter. BNP Paribas Financial Markets now owns 82,383 shares of the basic materials company’s stock worth $7,165,000 after buying an additional 38,692 shares during the period. Institutional investors and hedge funds own 93.95% of the company’s stock.

Ashland Company Profile

Ashland Inc provides additives and specialty ingredients in the North and Latin America, Europe, Asia Pacific, and internationally. It operates through Life Sciences, Personal Care, Specialty Additives, and Intermediates segments. The Life Sciences segment offers pharmaceutical solutions, including controlled release polymers, disintegrants, tablet coatings, thickeners, solubilizers, and tablet binders; nutrition solutions, such as thickeners, stabilizers, emulsifiers, and additives; and nutraceutical solutions comprising products for weight management, joint comfort, stomach and intestinal health, sports nutrition, and general wellness, as well as custom formulation, toll processing, and particle engineering solutions.