Axalta Coating Systems Ltd. (NYSE:AXTA) has been upgraded by BofA/Merrill, which now rates the stock as Buy versus Neutral prior rating , according to a note issued on January 08. Analysts at Seaport Global Securities, shed their negative views on October 29 by lifting it fromNeutral to Buy. Brokerage firm Barclays, looks cautious as they stick to prior recommendation of Equal Weight, in a call on October 26. However, they did change the target price from $32 to $30. JP Morgan analysts came out with bullish views on July 27 when the call was made. They think the stock is now Overweight compared to to their prior call for Neutral.
Axalta Coating Systems Ltd. (AXTA) shares finished at $26.24 on Wednesday. It dropped -0.08% in recent trade and currently has a stock-market value of $6.22B. Trading activity significantly improved as the volume at ready counter increased to 3,755,469 shares versus 2,135,530 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,052,384 shares. The stock is now 21.59% above against its bear-market low of $21.58 on December 18, 2018. It has retreated -26.91% since it’s 52-week high of $33.3 reached in March. Now the market price is down -11.98% on the year and up 12.04% YTD.
AXTA’s 50 day simple moving average (SMA 50) price is $24.24 and its 200-day simple moving average (SMA 200) price is $28.06. The company’s stock currently has a total float of 235.96M shares. Its weekly volatility is hovering around 1.94% and felt 2.21% volatility in price over a month. On the upside, the share price will test short term resistance at around $26.51. On a downside, the stock is likely to find some support, which begins at $26.02. The failure to get near-term support could push it to $25.79.
Separately, it has been reported that multiple insider activity took place at Axalta Coating Systems Ltd. (AXTA). SVP & CFO Lannon Sean M. sold 1,583 shares for $13,253 in transaction occurred on 2019/02/05. After making this transaction, the SVP & CFO owns a direct stake of 41,063 shares, worth $347,759, as per the last closing price. On 2019/02/01 Cash Michael A., SVP & Pres., Indus. Coatings at AXTA, dumped 5,483 shares at an average price of $25.72 per share. The selling total is valued at $4,337,603.
EVP & Pres., Trans. Coatings, Markevich Steven R. had divested 5,177 shares for $167,225 through a trade on 2019/02/01. Following this activity, the insider holds 133,670 shares worth $4,387,984 as of recent close.
When looking at valuations, Axalta Coating Systems Ltd. (AXTA) has a pricey P/E of 33.68x as compared to industry average of 23.55x. Moreover, it trades for 19.13 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 5.04x price/book and 1.32x 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 9.47%. AXTA’s ROE is 5.4%, which is also considerably worse than the industry’s ROE of 6.65%. 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 2.8% since the company’s Mar-19 earnings report. Over the past 12 fiscal quarters, Axalta Coating Systems Ltd. (NYSE:AXTA) has topped consensus earnings estimates in 7 quarters (58%), missed earnings in 3 quarters (25%), whereas at 2 occasion EPS met analyst expectations. AXTA last reported earnings on January 30, 2019 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 $0 generated last year. EPS is seen in a range of $0.37 to $0.44, against the 0 reported a year ago.