KMG Chemicals (KMG) Downgraded by Zacks Investment Research

Zacks Investment Research lowered shares of KMG Chemicals (NYSE:KMG) from a buy rating to a hold rating in a research note released on Wednesday.

According to Zacks, “KMG Chemicals manufactures, markets and distributes specialty, niche chemicals. The company manufactures, markets and distributes three wood preserving chemicals, pentachlorophenol, creosote and sodium pentachlorophenate, to industrial customers engaged in the wood preserving business. The company’s customers use these preservatives to treat wood and supply the treated wood products to end-users in a variety of industries, principally the railroad, utility and construction industries. “

Other analysts have also recently issued reports about the company. Goldman Sachs Group began coverage on KMG Chemicals in a report on Monday, January 22nd. They set a neutral rating and a $73.00 price objective on the stock. KeyCorp began coverage on KMG Chemicals in a report on Tuesday, November 21st. They set an overweight rating and a $63.00 price objective on the stock. Finally, ValuEngine cut KMG Chemicals from a buy rating to a hold rating in a report on Friday, December 1st. One analyst has rated the stock with a sell rating, three have assigned a hold rating and two have assigned a buy rating to the company’s stock. KMG Chemicals has a consensus rating of Hold and a consensus target price of $71.00.

KMG Chemicals (KMG) opened at $61.86 on Wednesday. KMG Chemicals has a 52 week low of $36.41 and a 52 week high of $68.13. The company has a quick ratio of 1.92, a current ratio of 2.87 and a debt-to-equity ratio of 0.99. The firm has a market capitalization of $925.72, a P/E ratio of 32.39 and a beta of 0.35.

KMG Chemicals (NYSE:KMG) last posted its quarterly earnings results on Monday, December 11th. The specialty chemicals company reported $0.83 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.63 by $0.20. The business had revenue of $110.70 million during the quarter, compared to the consensus estimate of $106.60 million. KMG Chemicals had a return on equity of 15.41% and a net margin of 6.46%. KMG Chemicals’s revenue was up 44.7% compared to the same quarter last year. equities analysts anticipate that KMG Chemicals will post 3.17 earnings per share for the current fiscal year.

In other news, major shareholder David L. Hatcher sold 45,000 shares of the stock in a transaction on Monday, February 12th. The stock was sold at an average price of $57.74, for a total transaction of $2,598,300.00. Following the transaction, the insider now owns 896,097 shares of the company’s stock, valued at approximately $51,740,640.78. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, major shareholder David L. Hatcher sold 3,000 shares of the firm’s stock in a transaction dated Wednesday, November 22nd. The shares were sold at an average price of $54.34, for a total value of $163,020.00. Following the sale, the insider now directly owns 1,433,097 shares in the company, valued at approximately $77,874,490.98. The disclosure for this sale can be found here. Insiders have sold a total of 657,000 shares of company stock worth $40,906,590 in the last three months. Corporate insiders own 6.10% of the company’s stock.

A number of hedge funds have recently modified their holdings of KMG. Legal & General Group Plc boosted its position in KMG Chemicals by 23.2% during the second quarter. Legal & General Group Plc now owns 2,198 shares of the specialty chemicals company’s stock valued at $106,000 after purchasing an additional 414 shares in the last quarter. Earnest Partners LLC bought a new stake in KMG Chemicals during the fourth quarter valued at about $112,000. Ramsey Quantitative Systems bought a new stake in KMG Chemicals during the fourth quarter valued at about $138,000. Victory Capital Management Inc. bought a new stake in KMG Chemicals during the third quarter valued at about $155,000. Finally, Hodges Capital Management Inc. bought a new stake in KMG Chemicals during the third quarter valued at about $221,000. 58.26% of the stock is currently owned by institutional investors.

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About KMG Chemicals

KMG Chemicals, Inc manufactures, formulates and globally distributes specialty chemicals. The Company operates businesses selling electronic chemicals, industrial wood treating chemicals, and industrial valve lubricants and sealants. The Company operates through two segments: Electronic chemicals and Other chemicals.

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