PPG Industries (NYSE: PPG) Stock: Is It a Buy Now? Here's What Top Analysts Are Saying

The stock market is constantly in flux, and investors are always looking for the next big winner. One company that has been on many investors' radars lately is PPG Industries, Inc. (NYSE: PPG - Free Report), a leading manufacturer and distributor of paints, coatings, and specialty materials. But with a “Moderate Buy” rating from analysts, is PPG a buy now?

Recent Analyst Ratings

Recent analyst reports suggest that PPG Industries is a stock to watch. While the average rating is “Moderate Buy,” there are differences of opinion among analysts.

For instance, Barclays reduced their price objective on PPG Industries from $148.00 to $144.00 and set an “equal weight” rating for the company in a research note on Monday, July 22nd. On the other hand, BMO Capital Markets dropped their target price on shares of PPG Industries from $165.00 to $161.00 but still maintained an “outperform” rating for the company in a research note on Monday, July 22nd.

This mix of ratings demonstrates the varied perspectives on PPG. Some analysts are more cautious, while others remain bullish.

Institutional Investor Sentiment

Institutional investors are closely watching PPG as well. Several hedge funds and other institutional investors have recently modified their holdings of the stock.

Hedge Funds

Mather Group LLC. trimmed its position in shares of PPG Industries by 95.0% during the second quarter, according to its most recent Form 13F filing with the SEC. The firm owned 4,598 shares of the specialty chemicals company's stock after selling 87,965 shares during the period. Mather Group LLC.'s holdings in PPG Industries were worth $579,000 at the end of the most recent reporting period.

Meanwhile, Quent Capital LLC raised its holdings in shares of PPG Industries by 136.0% in the second quarter. Quent Capital LLC now owns 571 shares of the specialty chemicals company's stock worth $72,000 after acquiring an additional 329 shares during the last quarter.

Other Institutional Investors

City State Bank lifted its holdings in PPG Industries by 4.6% during the 2nd quarter. City State Bank now owns 2,040 shares of the specialty chemicals company's stock worth $257,000 after buying an additional 90 shares during the last quarter.

Versant Capital Management Inc grew its position in shares of PPG Industries by 66.2% during the 2nd quarter. Versant Capital Management Inc now owns 565 shares of the specialty chemicals company's stock valued at $71,000 after buying an additional 225 shares during the last quarter.

Thurston Springer Miller Herd & Titak Inc. bought a new stake in PPG Industries in the 2nd quarter valued at about $833,000.

Finally, DNB Asset Management AS grew its position in PPG Industries by 5.5% in the 2nd quarter. DNB Asset Management AS now owns 46,967 shares of the specialty chemicals company's stock valued at $5,913,000 after buying an additional 2,431 shares in the last quarter.

Company Performance

To understand why analysts and institutional investors are watching PPG so closely, we need to consider the company's performance. PPG Industries last announced its quarterly earnings data on Thursday, July 18th. The specialty chemicals company reported $2.50 EPS for the quarter, beating analysts' consensus estimates of $2.48 by $0.02. The company had revenue of $4.79 billion for the quarter, compared to the consensus estimate of $4.93 billion.

PPG Industries had a net margin of 7.98% and a return on equity of 23.57%. The company's quarterly revenue was down 1.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.25 EPS. Sell-side analysts expect that PPG Industries, Inc. will post 8.25 EPS for the current year.

Share Repurchase Program

PPG Industries announced that its board has initiated a share repurchase plan on Thursday, April 18th that permits the company to buyback $2.50 billion in shares. This buyback authorization permits the specialty chemicals company to reacquire up to 8.1% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's management believes its shares are undervalued.

Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 12th. Investors of record on Monday, August 12th will be paid a $0.68 dividend. This is a positive change from PPG Industries's previous quarterly dividend of $0.65. This represents a $2.72 annualized dividend and a yield of 2.28%. The ex-dividend date of this dividend is Monday, August 12th. PPG Industries's dividend payout ratio is presently 45.95%.

Conclusion: What's the Verdict on PPG Industries?

With mixed analyst ratings, institutional investors making moves, and a company with a recent history of strong performance, PPG Industries presents an intriguing investment opportunity. However, the decision to invest in PPG, as with any stock, should be based on your individual investment goals and risk tolerance.

It's essential to conduct your own research and consider all factors before making any investment decision. Remember, past performance is not necessarily indicative of future results. Before you invest, consult with a financial advisor to ensure you understand the risks and make the best choices for your portfolio.

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