Element Solutions Inc [ESI] Is Currently 0.76 below its 200 Period Moving Avg: What Dose This Mean?

Element Solutions Inc [NYSE: ESI] gained 0.76% or 0.08 points to close at $10.66 with a heavy trading volume of 1517339 shares. The company report on August 18, 2020 that Element Solutions Inc Announces Closing of Senior Notes Offering.

Element Solutions Inc (NYSE:ESI) (the “Company”) today announced that it has closed its previously-announced private offering of $800 million aggregate principal amount of senior notes due 2028 (the “Notes”). The Notes bear interest at a rate of 3.875% per annum, to be paid semi-annually in arrears, and will mature on September 1, 2028. The Notes are fully and unconditionally guaranteed on a senior unsecured basis by certain of the Company’s existing domestic subsidiaries.

In connection with the offering of the Notes, the Company has issued a conditional notice of redemption providing for the redemption (the “Redemption”) of the full $800 million aggregate principal amount of its 5.875% senior notes due 2025 (the “Existing Notes”). The Company intends to use the net proceeds from the offering of the Notes, together with cash on hand, to pay the consideration for the Redemption, plus accrued and unpaid interest on the Existing Notes, if any, along with fees and expenses incurred in connection with the offering of the Notes and the Redemption.

It opened the trading session at $10.48, the shares rose to $10.715 and dropped to $10.37, the range by which the price of stock traded the whole day. The daily chart for ESI points out that the company has recorded -11.54% loss over the past six months. However, it is still -99.25% lower than its most recent low trading price.

If we look at the average trading volume of 2.09M shares, ESI reached to a volume of 1517339 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Element Solutions Inc [ESI]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ESI shares is $12.86 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ESI stock is a recommendation set at 2.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

SunTrust have made an estimate for Element Solutions Inc shares, keeping their opinion on the stock as Buy, with their previous recommendation back on April 20, 2020. The new note on the price target was released on November 18, 2019, representing the official price target for Element Solutions Inc stock. Previously, the target price had yet another raise to $13, while Barclays analysts kept a Equal Weight rating on ESI stock.

The Average True Range (ATR) for Element Solutions Inc is set at 0.36, with the Price to Sales ratio for ESI stock in the period of the last 12 months amounting to 1.53. The Price to Book ratio for the last quarter was 1.23, with the Price to Cash per share for the same quarter was set at 0.94. Price to Free Cash Flow for ESI in the course of the last twelve months was 12.46 with Quick ratio for the last quarter at 2.60.

Trading performance analysis for ESI stock

Element Solutions Inc [ESI] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -5.58. With this latest performance, ESI shares dropped by -3.62% in over the last four-week period, additionally sinking by -11.54% over the last 6 months – not to mention a rise of 19.37% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ESI stock in for the last two-week period is set at 43.33, with the RSI for the last a single of trading hit 39.07, and the three-weeks RSI is set at 46.43 for Element Solutions Inc [ESI]. The present Moving Average for the last 50 days of trading for this stock 10.89, while it was recorded at 10.77 for the last single week of trading, and 10.69 for the last 200 days.

Element Solutions Inc [ESI]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Element Solutions Inc [ESI] shares currently have an operating margin of +14.34 and a Gross Margin at +42.94. Element Solutions Inc’s Net Margin is presently recorded at +4.30.

Return on Total Capital for ESI is now 4.63, given the latest momentum, and Return on Invested Capital for the company is 1.40. Return on Equity for this stock inclined to 3.64, with Return on Assets sitting at 1.15. When it comes to the capital structure of this company, Element Solutions Inc [ESI] has a Total Debt to Total Equity ratio set at 71.30. Additionally, ESI Total Debt to Total Capital is recorded at 41.62, with Total Debt to Total Assets ending up at 36.62. Long-Term Debt to Equity for the company is recorded at 70.22, with the Long-Term Debt to Total Capital now at 40.99.

Reflecting on the efficiency of the workforce at the company, Element Solutions Inc [ESI] managed to generate an average of $17,932 per employee. Receivables Turnover for the company is 4.92 with a Total Asset Turnover recorded at a value of 0.27.Element Solutions Inc’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.60 and a Current Ratio set at 3.40.

Element Solutions Inc [ESI]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Element Solutions Inc posted 0.26/share EPS, while the average EPS was predicted by analysts to be reported at 0.21/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 23.80%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ESI. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Element Solutions Inc go to 6.40%.

An analysis of insider ownership at Element Solutions Inc [ESI]

There are presently around $2,296 million, or 92.50% of ESI stock, in the hands of institutional investors. The top three institutional holders of ESI stocks are: VANGUARD GROUP INC with ownership of 25,786,564, which is approximately -1.048% of the company’s market cap and around 0.50% of the total institutional ownership; DIMENSIONAL FUND ADVISORS LP, holding 18,111,644 shares of the stock with an approximate value of $193.07 million in ESI stocks shares; and BLACKROCK INC., currently with $171.76 million in ESI stock with ownership of nearly -5.52% of the company’s market capitalization.

Positions in Element Solutions Inc stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 102 institutional holders increased their position in Element Solutions Inc [NYSE:ESI] by around 31,175,269 shares. Additionally, 105 investors decreased positions by around 33,181,637 shares, while 20 investors held positions by with 151,020,558 shares. The mentioned changes placed institutional holdings at 215,377,464 shares, according to the latest SEC report filing. ESI stock had 35 new institutional investments in for a total of 4,563,122 shares, while 31 institutional investors sold positions of 8,618,147 shares during the same period.

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