Axalta Coating Systems Ltd (NYSE: AXTA)’s stock price has increased by 1.33 compared to its previous closing price of 30.87. However, the company has seen a -1.32% decrease in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-04-12 that Investors looking for stocks in the Chemical – Specialty sector might want to consider either Axalta Coating Systems (AXTA) or CSW Industrials (CSWI). But which of these two stocks presents investors with the better value opportunity right now?
Is It Worth Investing in Axalta Coating Systems Ltd (NYSE: AXTA) Right Now?
Axalta Coating Systems Ltd (NYSE: AXTA) has a higher price-to-earnings ratio of 25.95x compared to its average ratio. AXTA has 36-month beta value of 1.51. Analysts have mixed views on the stock, with 9 analysts rating it as a “buy,” 2 as “overweight,” 7 as “hold,” and 0 as “sell.”
The public float for AXTA is 219.30M, and currently, short sellers hold a 2.65% ratio of that float. The average trading volume of AXTA on April 23, 2024 was 2.00M shares.
AXTA’s Market Performance
AXTA stock saw a decrease of -1.32% in the past week, with a monthly decline of -7.29% and a quarterly a decrease of -4.43%. The volatility ratio for the week is 1.88%, and the volatility levels for the last 30 days are 1.68% for Axalta Coating Systems Ltd (AXTA). The simple moving average for the last 20 days is -4.86% for AXTA stock, with a simple moving average of 1.71% for the last 200 days.
Analysts’ Opinion of AXTA
UBS, on the other hand, stated in their research note that they expect to see AXTA reach a price target of $36, previously predicting the price at $35. The rating they have provided for AXTA stocks is “Neutral” according to the report published on January 08th, 2024.
Citigroup gave a rating of “Buy” to AXTA, setting the target price at $37 in the report published on June 14th of the previous year.
AXTA Trading at -4.05% from the 50-Day Moving Average
After a stumble in the market that brought AXTA to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -9.43% of loss for the given period.
Volatility was left at 1.68%, however, over the last 30 days, the volatility rate increased by 1.88%, as shares sank -6.52% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +0.74% upper at present.
During the last 5 trading sessions, AXTA fell by -1.32%, which changed the moving average for the period of 200-days by -0.79% in comparison to the 20-day moving average, which settled at $32.77. In addition, Axalta Coating Systems Ltd saw -7.92% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at AXTA starting from Awada Hadi, who sale 10,500 shares at the price of $31.99 back on Dec 04 ’23. After this action, Awada Hadi now owns 14,656 shares of Axalta Coating Systems Ltd, valued at $335,895 using the latest closing price.
BERUBE BRIAN A, the SVP and General Counsel of Axalta Coating Systems Ltd, sale 7,500 shares at $31.19 during a trade that took place back on Nov 17 ’23, which means that BERUBE BRIAN A is holding 44,408 shares at $233,925 based on the most recent closing price.
Stock Fundamentals for AXTA
Current profitability levels for the company are sitting at:
- 0.11 for the present operating margin
- 0.31 for the gross margin
The net margin for Axalta Coating Systems Ltd stands at 0.05. The total capital return value is set at 0.1. Equity return is now at value 16.81, with 3.73 for asset returns.
Based on Axalta Coating Systems Ltd (AXTA), the company’s capital structure generated 0.67 points at debt to capital in total, while cash flow to debt ratio is standing at 0.16. The debt to equity ratio resting at 2.05. The interest coverage ratio of the stock is 2.75.
Currently, EBITDA for the company is 876.2 million with net debt to EBITDA at 3.29. When we switch over and look at the enterprise to sales, we see a ratio of 1.88. The receivables turnover for the company is 4.11for trailing twelve months and the total asset turnover is 0.71. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.98.
Conclusion
To put it simply, Axalta Coating Systems Ltd (AXTA) has had a bad performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
