Zacks Investment Research Lowers RPM International (RPM) to Sell

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RPM International (NYSE:RPM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Wednesday, September 19th.

According to Zacks, “Shares of RPM International have outperformed the industry so far this year. Acquisition plays an important part of RPM International’s growth strategy. In fiscal 2018, acquisitions contributed 3% to net sales.  However, the company’s lower-than-expected fourth-quarter fiscal 2018 results remain a cause of concern for investors. Earnings estimates for fiscal 2019 have also remain unchanged over the past 30 days which indicates limited upside potential. Increased raw material costs and inclement weather mar growth prospects. Also, increased exposure to foreign markets makes it susceptible to uncertain macro conditions abroad. Nevertheless, the company is on track to curb costs by closing plants, merging IT system, centralizing more of its back-office functions and rationalizing its manufacturing footprint.”

RPM has been the subject of a number of other research reports. Morgan Stanley set a $70.00 target price on shares of RPM International and gave the stock an “overweight” rating in a research note on Friday, July 20th. Northcoast Research cut shares of RPM International from a “buy” rating to a “neutral” rating in a research note on Friday, July 20th. They noted that the move was a valuation call. Bank of America upgraded shares of RPM International from a “neutral” rating to a “buy” rating and set a $56.00 price objective for the company in a research note on Wednesday, July 18th. BMO Capital Markets lifted their price objective on shares of RPM International from $60.00 to $75.00 and gave the stock an “outperform” rating in a research note on Thursday, July 12th. Finally, ValuEngine upgraded shares of RPM International from a “sell” rating to a “hold” rating in a research note on Wednesday, June 27th. Seven research analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. The company has a consensus rating of “Hold” and an average target price of $60.00.

Shares of RPM traded up $0.05 during midday trading on Wednesday, reaching $59.06. The stock had a trading volume of 1,778,729 shares, compared to its average volume of 1,203,215. The company has a debt-to-equity ratio of 1.33, a current ratio of 2.45 and a quick ratio of 1.63. The company has a market cap of $8.67 billion, a PE ratio of 20.23, a price-to-earnings-growth ratio of 2.34 and a beta of 1.43. RPM International has a one year low of $46.36 and a one year high of $68.13.

RPM International (NYSE:RPM) last posted its earnings results on Wednesday, October 3rd. The specialty chemicals company reported $0.76 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.86 by ($0.10). The company had revenue of $1.46 billion for the quarter, compared to analyst estimates of $1.42 billion. RPM International had a return on equity of 23.82% and a net margin of 6.35%. The business’s quarterly revenue was up 8.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.86 EPS. Analysts expect that RPM International will post 3.1 earnings per share for the current year.

In other news, Director Robert Livingston bought 5,000 shares of the firm’s stock in a transaction on Friday, August 17th. The shares were purchased at an average cost of $64.06 per share, with a total value of $320,300.00. Following the acquisition, the director now directly owns 7,150 shares in the company, valued at $458,029. The purchase was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Kirkland B. Andrews bought 2,000 shares of the firm’s stock in a transaction on Friday, October 5th. The stock was purchased at an average cost of $60.21 per share, for a total transaction of $120,420.00. Following the completion of the acquisition, the director now owns 3,800 shares in the company, valued at $228,798. The disclosure for this purchase can be found here. Over the last three months, insiders acquired 15,100 shares of company stock worth $943,892. Insiders own 1.80% of the company’s stock.

Several institutional investors have recently made changes to their positions in the stock. Sit Investment Associates Inc. grew its holdings in shares of RPM International by 26.1% during the 2nd quarter. Sit Investment Associates Inc. now owns 4,475 shares of the specialty chemicals company’s stock valued at $261,000 after purchasing an additional 925 shares during the last quarter. Municipal Employees Retirement System of Michigan grew its holdings in shares of RPM International by 2.8% during the 1st quarter. Municipal Employees Retirement System of Michigan now owns 41,530 shares of the specialty chemicals company’s stock valued at $1,980,000 after purchasing an additional 1,140 shares during the last quarter. Saturna Capital CORP grew its holdings in shares of RPM International by 0.6% during the 1st quarter. Saturna Capital CORP now owns 207,006 shares of the specialty chemicals company’s stock valued at $9,868,000 after purchasing an additional 1,150 shares during the last quarter. US Bancorp DE grew its holdings in shares of RPM International by 2.8% during the 1st quarter. US Bancorp DE now owns 47,618 shares of the specialty chemicals company’s stock valued at $2,270,000 after purchasing an additional 1,319 shares during the last quarter. Finally, Oregon Public Employees Retirement Fund grew its holdings in shares of RPM International by 3.0% during the 2nd quarter. Oregon Public Employees Retirement Fund now owns 52,287 shares of the specialty chemicals company’s stock valued at $3,049,000 after purchasing an additional 1,503 shares during the last quarter. 79.99% of the stock is currently owned by institutional investors.

About RPM International

RPM International Inc manufactures and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. Its Industrial segment offers waterproofing, coatings, and institutional roofing systems; sealants, air barriers, tapes, and foams; residential home weatherization systems; roofing and building maintenance and related services; sealing and bonding, and flooring and in-plant glazing solutions; solutions for fire stopping and intumescent steel coating, and the manufacturing industry; polymer flooring systems; and fiberglass reinforced plastic gratings and shapes.

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