On April 13, 2023 at 09:58:14 ET an unusually large $24.90K block of Call contracts in Element Solutions (ESI) was sold, with a strike price of $20.00 / share, expiring in 36 day(s) (on May 19, 2023). Fintel tracks all large options trades, and the premium spent on this trade was ? sigmas above the mean, placing it in the th percentile of all recent large trades made in ESI options.

This trade was first picked up on Fintel’s real time Unusual Option Trades tool, where unusual option trades are highlighted.

What is the Fund Sentiment?

There are 685 funds or institutions reporting positions in Element Solutions. This is an increase of 39 owner(s) or 6.04% in the last quarter. Average portfolio weight of all funds dedicated to ESI is 0.36%, an increase of 11.11%. Total shares owned by institutions decreased in the last three months by 0.59% to 274,048K shares. The put/call ratio of ESI is 0.23, indicating a bullish outlook.

Analyst Price Forecast Suggests 26.03% Upside

As of April 6, 2023, the average one-year price target for Element Solutions is $23.00. The forecasts range from a low of $17.68 to a high of $26.25. The average price target represents an increase of 26.03% from its latest reported closing price of $18.25.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Element Solutions is $2,594MM, an increase of 1.75%. The projected annual non-GAAP EPS is $1.44.

What are Other Shareholders Doing?

Nisa Investment Advisors holds 4K shares representing 0.00% ownership of the company. No change in the last quarter.

Teachers Retirement System Of The State Of Kentucky holds 343K shares representing 0.14% ownership of the company. In it’s prior filing, the firm reported owning 326K shares, representing an increase of 4.79%. The firm increased its portfolio allocation in ESI by 174.23% over the last quarter.

TIEIX – TIAA-CREF Equity Index Fund Institutional Class holds 188K shares representing 0.08% ownership of the company. No change in the last quarter.

USEQ – Invesco Russell 1000 Enhanced Equal Weight ETF holds 0K shares representing 0.00% ownership of the company. No change in the last quarter.

Invesco holds 3,027K shares representing 1.25% ownership of the company. In it’s prior filing, the firm reported owning 3,710K shares, representing a decrease of 22.57%. The firm decreased its portfolio allocation in ESI by 99.99% over the last quarter.

Element Solutions Declares $0.08 Dividend

On February 13, 2023 the company declared a regular quarterly dividend of $0.08 per share ($0.32 annualized). Shareholders of record as of March 1, 2023 received the payment on March 15, 2023. Previously, the company paid $0.08 per share.

At the current share price of $18.25 / share, the stock’s dividend yield is 1.75%. Looking back five years and taking a sample every week, the average dividend yield has been 2.22%, the lowest has been 0.88%, and the highest has been 4.92%. The standard deviation of yields is 0.87 (n=236).

The current dividend yield is 0.54 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.41. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company has not increased its dividend in the last three years.

Element Solutions Background Information
(This description is provided by the company.)

Element Solutions Inc is a leading specialty chemicals company whose businesses supply a broad range of solutions that enhance the performance of products people use every day. Developed in multi-step technological processes, these innovative solutions enable customers’ manufacturing processes in several key industries, including consumer electronics, power electronics, semiconductor fabrication, communications and data storage infrastructure, automotive systems, industrial surface finishing, consumer packaging and offshore energy.

See all Element Solutions regulatory filings.

This article originally appeared on Fintel

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