RPM International (NYSE:RPM) Shares Gap Up on Earnings Beat

RPM International Inc. (NYSE:RPM)’s stock price gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $96.71, but opened at $110.60. RPM International shares last traded at $108.1250, with a volume of 370,925 shares traded.

The specialty chemicals company reported $0.57 EPS for the quarter, topping analysts’ consensus estimates of $0.35 by $0.22. RPM International had a return on equity of 22.49% and a net margin of 8.79%.The company had revenue of $1.61 billion for the quarter, compared to analysts’ expectations of $1.55 billion. During the same period in the prior year, the firm earned $0.35 earnings per share. The firm’s revenue was up 8.9% compared to the same quarter last year.

RPM International Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, April 30th. Shareholders of record on Thursday, April 16th will be paid a dividend of $0.54 per share. This represents a $2.16 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date is Thursday, April 16th. RPM International’s dividend payout ratio is 41.62%.

More RPM International News

Here are the key news stories impacting RPM International this week:

• Positive Sentiment: Q3 beat — RPM reported record quarterly net sales of $1.61 billion and adjusted EPS of $0.57, topping consensus on both revenue and earnings and showing year-over-year growth. Record Fiscal Q3 Results
• Positive Sentiment: Margin expansion and profit upside — adjusted EBIT and EPS rose sharply (double-digit/near-50% EBIT growth cited by coverage), driven by MAP initiatives, operational efficiencies and favorable mix, which amplified the earnings beat. EBIT Surge Coverage
• Positive Sentiment: Strong sales drivers — growth was broad-based (construction products, performance coatings, consumer products) with contributions from acquisitions, pricing and favorable FX. Analysts highlighted record sales as evidence of demand strength. Sales Rise Article
• Neutral Sentiment: Guidance tone — the company affirmed guidance for mid-single-digit revenue and earnings growth (management described outlook as upbeat but measured), which supports the beat without dramatically raising near-term street estimates. Outlook Coverage
• Neutral Sentiment: Capital returns and investor positioning — analysts and institutions have been accumulating shares; RPM’s steady dividend and modest buybacks were highlighted as support for total returns. Analyst & Institutional Coverage
• Neutral Sentiment: Organizational update — leadership changes announced within the Consumer Group; operationally minor but worth monitoring for execution continuity. Leadership Changes
• Negative Sentiment: Near-term caution — some commentary notes the company reaffirmed (rather than raised) guidance and the stock may need sustained margin/organic-growth momentum to justify higher valuations; market technicals could cap near-term upside. MarketBeat Analysis

Wall Street Analysts Forecast Growth

A number of research firms have commented on RPM. Weiss Ratings restated a “hold (c+)” rating on shares of RPM International in a research note on Friday, March 27th. Citigroup decreased their price target on RPM International from $136.00 to $127.00 and set a “buy” rating on the stock in a research note on Thursday, December 18th. KeyCorp restated a “sector weight” rating on shares of RPM International in a research note on Friday, January 9th. Deutsche Bank Aktiengesellschaft decreased their price target on RPM International from $138.00 to $126.00 and set a “buy” rating on the stock in a research note on Monday, January 12th. Finally, Robert W. Baird upgraded RPM International from a “neutral” rating to an “outperform” rating and set a $125.00 price target on the stock in a research note on Wednesday, March 4th. Eleven research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $126.33.

Insider Activity

In other news, VP Timothy R. Kinser sold 3,441 shares of the stock in a transaction on Wednesday, January 21st. The stock was sold at an average price of $110.31, for a total value of $379,576.71. Following the sale, the vice president directly owned 21,248 shares in the company, valued at approximately $2,343,866.88. This trade represents a 13.94% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 1.60% of the company’s stock.

Institutional Trading of RPM International

Hedge funds have recently modified their holdings of the stock. Root Financial Partners LLC acquired a new stake in shares of RPM International in the third quarter valued at $30,000. Versant Capital Management Inc raised its stake in shares of RPM International by 48.6% in the third quarter. Versant Capital Management Inc now owns 275 shares of the specialty chemicals company’s stock valued at $32,000 after acquiring an additional 90 shares in the last quarter. Ares Financial Consulting LLC purchased a new position in RPM International in the fourth quarter valued at $37,000. Rothschild Investment LLC increased its holdings in RPM International by 2,387.0% in the fourth quarter. Rothschild Investment LLC now owns 572 shares of the specialty chemicals company’s stock valued at $59,000 after buying an additional 549 shares during the last quarter. Finally, Los Angeles Capital Management LLC purchased a new position in RPM International in the fourth quarter valued at $60,000. 80.95% of the stock is currently owned by institutional investors and hedge funds.

RPM International Stock Up 12.4%

The stock has a market cap of $13.92 billion, a PE ratio of 20.94, a price-to-earnings-growth ratio of 2.38 and a beta of 1.10. The firm has a fifty day moving average of $106.97 and a 200 day moving average of $108.32. The company has a quick ratio of 1.45, a current ratio of 2.22 and a debt-to-equity ratio of 0.80.

RPM International Company Profile

RPM International Inc is a global holding company whose subsidiaries specialize in the manufacture and marketing of high-performance coatings, sealants, building materials, and specialty chemicals. Through its two principal operating segments—Performance Coatings and Industrial Coatings—RPM serves a diverse range of end markets, including construction, consumer products, industrial maintenance, and specialty applications.

The company’s Performance Coatings segment offers a broad portfolio of architectural coatings, waterproofing systems, and specialty building products used by contractors, builders, and homeowners.