Axalta Coating Systems Ltd. (NYSE:AXTA) sank as low as $23.95 Thursday before getting settled at $24.61. The 0.49 percent increase called for market cap to move at $5.87B. The price went up as high as $23.95 before retreating. Trading activity significantly improved as the volume at ready counter increased to 3,726,315 shares versus 2,084,345 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,081,083 shares. The stock is now 4.06% above against its bear-market low of $23.65 on October 25, 2018. It has retreated -35.31% since it’s 52-week high of $33.3 reached in March. Now the market price is down -24.97% on the year and down -23.95% YTD.
AXTA’s 50 day simple moving average (SMA 50) price is $25.8 and its 200-day simple moving average (SMA 200) price is $29.54. The company’s stock currently has a total float of 235.96M shares. Its weekly volatility is hovering around 3% and felt 2.32% volatility in price over a month. On the upside, the share price will test short term resistance at around $24.83. On a downside, the stock is likely to find some support, which begins at $24.17. The failure to get near-term support could push it to $23.73.
Separately, it has been reported that multiple insider activity took place at Axalta Coating Systems Ltd. (AXTA). EVP & Pres., Trans. Coatings Markevich Steven R. sold 16,197 shares for $160,832 in transaction occurred on 2018/10/02. After making this transaction, the EVP & Pres., Trans. Coatings owns a direct stake of 472,466 shares, worth $3,958,076, as per the last closing price. On 2018/09/07 Markevich Steven R., EVP & Pres., Trans. Coatings at AXTA, dumped 13,500 shares at an average price of $29.47 per share. The selling total is valued at $4,356,684.
Director, Shaver Charles W had divested 250,000 shares for $440,828 through a trade on 2018/09/05. Following this activity, the insider holds 7,445,000 shares worth $10,848,777 as of recent close. Wall Street’s most bullish Axalta Coating Systems Ltd. (NYSE:AXTA) analysts are predicting the share price to blow past $36 per share during the next 12 months. The current median share price forecast by them is $30, suggesting that the stock could increase 21.9% in that time frame. The average price target of $30.63 calls for a nearly 24.46% increase in the stock price.
It had seen a positive analyst call from Seaport Global Securities, which upgraded the stock from Neutral to Buy on October 29. Analysts at Barclays, maintained the company shares at Equal Weight on October 26 but switched target price from $32 to $30. The stock won favor of JP Morgan analysts who expressed their confidence in it using an upgrade from Neutral to Overweight on July 27. JP Morgan analysts came out with bearish views on May 30 when the call was made. They think the stock is now Neutral compared to to their prior call for Overweight.
When looking at valuations, Axalta Coating Systems Ltd. (AXTA) has a pricey P/E of 31.59x as compared to industry average of 18.19x. Moreover, it trades for 17.37 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 4.72x price/book and 1.25x price/sales. Compared to others, Axalta Coating Systems Ltd. is in a different league with regards to profitability, having net margins of 1.5%. To put some perspective around this, the industry’s average net margin is 13.42%. AXTA’s ROE is 5.4%, which is also considerably worse than the industry’s ROE of 24.66%. It’s also very liquid in the near term, with a current ratio of 2.2. The stock has a debt/capital of 3.13.
Shares of Axalta Coating Systems Ltd. (AXTA) have gained 1.4% since the company’s last earnings report. Over the past 12 fiscal quarters, Axalta Coating Systems Ltd. (NYSE:AXTA) has topped consensus earnings estimates in 6 quarters (50%), missed earnings in 4 quarters (33%), whereas at 2 occasion EPS met analyst expectations. AXTA last reported earnings on October 25, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.32 per share, -96.11% change on the same period last year. That was better than consensus for $0.3. Revenue for the recent quarter stood at $1.15 billion, up 5% on last year and below the $1.15 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.16 billion to $1.21 billion, which should be compared with $1.2 billion generated last year. EPS is seen in a range of $0.29 to $0.36, against the $0.36 reported a year ago.