In a recent report, Wells Fargo & Company raised its price target for Ingevity Corporation (NYSE:NGVT) from $38.00 to $48.00. This adjustment, announced on June 6, 2023, indicates a potential upside of 1.89% from the company’s previous closing price. The brokerage maintains an “equal weight” rating on the stock, reflecting a cautious but positive outlook for the firm.
This upgrade aligns with a broader trend among analysts, as Wall Street Zen elevated Ingevity’s rating from “buy” to “strong-buy” on the same day. Currently, the stock has garnered a mix of ratings: one analyst has assigned a hold rating, three have given a buy rating, and one has issued a strong buy rating. According to MarketBeat, the consensus rating for Ingevity stands at “Buy,” with a consensus price target of $55.25.
Recent Earnings and Financial Performance
Ingevity’s latest earnings report, released on May 7, 2023, revealed a significant performance highlight. The company posted earnings of $0.99 per share, exceeding analysts’ expectations of $0.74 by $0.25. However, revenues for the quarter totaled $284 million, falling short of the anticipated $299.13 million. This decline marks a 16.5% decrease compared to the same quarter last year, when the company reported earnings of $0.47 per share.
Despite the revenue drop, Ingevity’s return on equity stood at an impressive 63.76%, although it recorded a negative net margin of 26.20%. Analysts forecast that Ingevity is expected to achieve $4.45 earnings per share for the current fiscal year, reflecting ongoing expectations for recovery and growth.
Institutional Investment Trends
Recent shifts in institutional ownership also highlight a growing confidence in Ingevity. Several hedge funds have adjusted their positions in the company. GAMMA Investing LLC increased its holdings by 119.1% in the first quarter, now owning 1,137 shares valued at approximately $45,000. BI Asset Management Fondsmaeglerselskab A S raised its stake by 21.6%, accumulating 1,670 shares worth $66,000.
Empowered Funds LLC also expanded its investment by 12.9%, now holding 5,181 shares valued at around $205,000. Other notable investments include O’Shaughnessy Asset Management LLC and the Teacher Retirement System of Texas, which purchased stakes valued at approximately $214,000 and $237,000, respectively. Currently, institutional investors own 91.59% of Ingevity’s stock, indicating strong support from the investment community.
Ingevity Corporation specializes in manufacturing and selling activated carbon products, specialty chemicals, and engineered polymers across various regions, including North America, the Asia Pacific, Europe, the Middle East, Africa, and South America. The company operates through three segments: Performance Materials, Performance Chemicals, and Advanced Polymer Technologies.
As analysts continue to express confidence in Ingevity’s potential, the upcoming quarters will be crucial for assessing the company’s performance and market position.