Ashland Global (NYSE:ASH) Downgraded to “Strong Sell” at Zacks Investment Research

Zacks Investment Research cut shares of Ashland Global (NYSE:ASH) from a hold rating to a strong sell rating in a report released on Wednesday morning, Zacks.com reports. Zacks Investment Research currently has $90.00 target price on the basic materials company’s stock.

According to Zacks, “Earnings estimates for Ashland for the first-quarter of fiscal 2022 have been declining over the past month. Ashland faces headwinds from higher raw material and energy costs. Raw material supply tightness remains a concern. The company is seeing higher costs for butane due to a spike in natural gas costs. Butane is expected to remain a significant part of its raw material inflation in fiscal 2022. Logistics and shipping challenges are also affecting the company’s costs. Ashland is facing significant issues in land transportation. It expects these issues to continue over the near term. Higher costs associated with these headwinds might hurt its margins. China’s energy use restrictions may also potentially impact the company’s plant operations in fiscal 2022. The company’s high debt level is also a matter of concern.”

ASH has been the subject of several other reports. Monness Crespi & Hardt lowered Ashland Global from a buy rating to a neutral rating in a report on Thursday, November 11th. Mizuho lifted their price target on Ashland Global from $116.00 to $125.00 and gave the company a buy rating in a report on Friday, November 12th. Argus lifted their price target on Ashland Global from $99.00 to $126.00 and gave the company a buy rating in a report on Friday, November 19th. BMO Capital Markets lifted their price target on Ashland Global from $122.00 to $133.00 and gave the company an outperform rating in a report on Monday, November 15th. Finally, Wells Fargo & Company lifted their price target on Ashland Global from $107.00 to $115.00 and gave the company an overweight rating in a report on Thursday, November 11th. One analyst has rated the stock with a sell rating, two have issued a hold rating and seven have issued a buy rating to the company’s stock. According to MarketBeat, the company currently has an average rating of Buy and a consensus price target of $115.40.

Shares of NYSE ASH opened at $105.70 on Wednesday. Ashland Global has a one year low of $79.16 and a one year high of $110.74. The firm has a market capitalization of $6.02 billion, a PE ratio of 29.53 and a beta of 1.25. The company has a current ratio of 1.84, a quick ratio of 1.33 and a debt-to-equity ratio of 0.58. The business has a 50-day moving average price of $104.56 and a two-hundred day moving average price of $94.58.

Ashland Global (NYSE:ASH) last announced its quarterly earnings data on Tuesday, November 9th. The basic materials company reported $1.22 EPS for the quarter, missing the Zacks’ consensus estimate of $1.29 by ($0.07). Ashland Global had a return on equity of 8.33% and a net margin of 9.25%. The business had revenue of $591.00 million for the quarter, compared to analyst estimates of $591.20 million. During the same quarter in the previous year, the business posted $0.99 earnings per share. Research analysts anticipate that Ashland Global will post 4.65 EPS for the current year.

The business also recently announced a quarterly dividend, which was paid on Wednesday, December 15th. Investors of record on Wednesday, December 1st were issued a $0.30 dividend. The ex-dividend date of this dividend was Tuesday, November 30th. This represents a $1.20 annualized dividend and a yield of 1.14%. Ashland Global’s dividend payout ratio (DPR) is currently 33.52%.

A number of hedge funds and other institutional investors have recently modified their holdings of ASH. Advisory Services Network LLC bought a new position in Ashland Global in the 2nd quarter worth approximately $28,000. Dark Forest Capital Management LP bought a new position in Ashland Global in the 2nd quarter worth approximately $28,000. Jacobi Capital Management LLC bought a new position in Ashland Global in the 2nd quarter worth approximately $46,000. First Manhattan Co. bought a new position in Ashland Global in the 3rd quarter worth approximately $60,000. Finally, FORA Capital LLC bought a new position in Ashland Global in the 2nd quarter worth approximately $73,000. 98.10% of the stock is currently owned by institutional investors.

Ashland Global Company Profile

Ashland Global Holdings, Inc is a global specialty chemicals company. The company engages in the manufacture and distribution of adhesives, architectural coatings, automotive, construction, energy, food and beverage, personal care, and pharmaceutical. It operates through the following segments: Life Sciences, Personal Care & Household, Specialty Additives, and Intermediates and Solvents.

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