Ashland (NYSE:ASH) Shares Gap Down Following Weak Earnings

Ashland Inc. (NYSE:ASH - Get Free Report) shares gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $87.38, but opened at $80.01. Ashland shares last traded at $80.84, with a volume of 128,300 shares.

The basic materials company reported $1.26 EPS for the quarter, missing the consensus estimate of $1.33 by ($0.07). Ashland had a net margin of 7.01% and a return on equity of 5.98%. The firm had revenue of $522.00 million for the quarter, compared to the consensus estimate of $524.07 million. During the same quarter in the prior year, the firm earned $0.41 EPS. The company's revenue was up .8% compared to the same quarter last year.

Ashland Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Sunday, September 15th. Shareholders of record on Sunday, September 1st were issued a dividend of $0.405 per share. The ex-dividend date was Friday, August 30th. This represents a $1.62 annualized dividend and a yield of 2.01%. Ashland's payout ratio is 54.92%.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the stock. StockNews.com downgraded shares of Ashland from a "buy" rating to a "hold" rating in a research report on Friday, September 13th. Wells Fargo & Company decreased their price objective on Ashland from $112.00 to $100.00 and set an "overweight" rating for the company in a report on Thursday, August 8th. JPMorgan Chase & Co. upgraded Ashland from an "underweight" rating to a "neutral" rating and dropped their target price for the company from $90.00 to $89.00 in a report on Thursday, August 8th. BMO Capital Markets cut their target price on Ashland from $105.00 to $92.00 and set a "market perform" rating on the stock in a research report on Friday, August 9th. Finally, UBS Group lowered their price target on Ashland from $116.00 to $107.00 and set a "buy" rating for the company in a research report on Thursday, August 15th. Three equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $103.50.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Norden Group LLC bought a new stake in shares of Ashland during the 1st quarter worth $224,000. BNP Paribas Financial Markets raised its position in Ashland by 40.6% in the first quarter. BNP Paribas Financial Markets now owns 12,139 shares of the basic materials company's stock worth $1,182,000 after acquiring an additional 3,507 shares during the period. Central Pacific Bank Trust Division purchased a new position in Ashland in the first quarter valued at about $140,000. Duality Advisers LP grew its position in shares of Ashland by 79.3% during the 1st quarter. Duality Advisers LP now owns 11,557 shares of the basic materials company's stock valued at $1,125,000 after acquiring an additional 5,113 shares during the period. Finally, Quantbot Technologies LP purchased a new stake in shares of Ashland during the 1st quarter worth approximately $624,000. Hedge funds and other institutional investors own 93.95% of the company's stock.

Ashland Price Performance

The company has a current ratio of 2.98, a quick ratio of 1.84 and a debt-to-equity ratio of 0.45. The business's fifty day moving average is $86.31 and its 200 day moving average is $91.74. The company has a market cap of $3.94 billion, a P/E ratio of 27.56, a PEG ratio of 1.13 and a beta of 0.88.

About Ashland

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.