PPG Industries Inc (NYSE:PPG) and Chemfil Canada Joint Venture

[Business Wire] PPG Industries Inc (NYSE:PPG)(TREND ANALYSIS) announced  that it has reached a definitive agreement to acquire the remaining interest in Chemfil Canada Limited, a joint venture of PPG and Madinal Enterprises. The transaction is expected to close in the third quarter, subject to customary closing conditions. Financial terms were not disclosed.

Chemfil Canada produces pretreatment products, as well as some general industrial chemicals, for automotive original equipment manufacturers (OEMs) and industrial customers in Canada.

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PPG Industries Inc (NYSE:PPG) stock is currently trading 18.28% below its 52-week-high, 13.32% above its 52-week-low. The 1-year stock price history is in the range of $85.78 – $118.95. PPG Industries Inc (PPG) has a price to earnings ratio of 24.21 versus Basic Materials sector average of 17.13. PPG stock price has underperformed the S&P 500 by 14.3%. The Diversified Chemicals company is currently valued at $26.32 billion and its share price closed the last trading session at $97.21. The stock has a 50-day moving average of $107.95 and a 200-day moving average of $112.97.

PPG Industries Inc (PPG) current short interest stands at 2.5 million shares. It has decreased by 10% from the same period of last month. Around 1% of the company’s shares, which are float, are short sold. With a 10-days average volume of 2.14 million shares, the number of days required to cover the short positions stand at 1.2 days.

The company is expected to announce next quarter earnings on October 15, at consensus estimate of $1.63. PPG Industries Inc (PPG) reported last quarter earnings on July 16. The Diversified Chemicals company announced earnings per share of $1.67 against a consensus Street estimate of $1.62, beating the average estimate by $0.05. This corresponds to an increase of $0.2 compared to the same quarter of the previous fiscal year.

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There are currently twenty-one analysts that cover PPG Industries Inc stock. Of those twenty-one, fourteen have a Buy rating, seven have a Hold rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $126.79.

A recent analyst activity consisted of Deutsche Bank reiterating their Buy stance on July 9. Deutsche Bank decreased price target from $255 to $129. This corresponds to a 32.7% upside from the last closing price. On the date of report, the stock closed at $112.26.

Jefferies reiterated their Buy stance on June 26, and increased their price target on PPG stock from $130 to $135. This corresponds to a 38.87% upside from the last closing price. On the date of report, the stock closed at $117.61.

From an income perspective, PPG Industries Inc (PPG) has a dividend yield of 1.4%. The dividend growth rate has evolved at the pace of 3.5% over the last 5 years and the payout ratio stands at 34%.

Company profile

PPG Industries, Inc. supplies products for the manufacturing, construction, automotive, chemical processing, and other industries worldwide. The Company makes protective and decorative coatings, flat glass, fabricated glass products, continuous-strand fiber glass products, and industrial and specialty chemicals.

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