Zacks Investment Research Downgrades Platform Specialty Products (PAH) to Sell

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Platform Specialty Products (NYSE:PAH) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Monday.

According to Zacks, “Earnings estimates for Platform Specialty for the third quarter and the full year are going down of late. Platform Specialty is exposed to raw material inflation which may hurt its margins. The company’s high debt level is another concern. Poor weather conditions and softness in Europe are also affecting its Agricultural business.”

Other equities research analysts have also recently issued research reports about the company. ValuEngine upgraded Platform Specialty Products from a “sell” rating to a “hold” rating in a research note on Friday, October 26th. Nomura cut their price objective on Platform Specialty Products from $16.00 to $15.00 and set a “buy” rating for the company in a research report on Monday, October 15th. Goldman Sachs Group cut Platform Specialty Products from a “buy” rating to a “neutral” rating in a research report on Monday, July 23rd. Finally, Citigroup cut Platform Specialty Products from a “buy” rating to a “neutral” rating and increased their price objective for the stock from $13.00 to $14.00 in a research report on Wednesday, September 19th. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and two have given a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus target price of $13.50.

Platform Specialty Products stock opened at $10.51 on Monday. Platform Specialty Products has a 12 month low of $9.09 and a 12 month high of $13.54. The company has a debt-to-equity ratio of 2.07, a current ratio of 2.11 and a quick ratio of 1.62. The company has a market cap of $3.08 billion, a PE ratio of 13.83, a P/E/G ratio of 1.77 and a beta of 3.18.

Platform Specialty Products (NYSE:PAH) last released its quarterly earnings results on Thursday, August 2nd. The specialty chemicals company reported $0.26 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.24 by $0.02. Platform Specialty Products had a positive return on equity of 9.15% and a negative net margin of 4.08%. The business had revenue of $1 billion during the quarter, compared to analysts’ expectations of $997.27 million. During the same quarter in the prior year, the business earned $0.20 earnings per share. The company’s quarterly revenue was up 6.5% compared to the same quarter last year. As a group, sell-side analysts anticipate that Platform Specialty Products will post 0.5 EPS for the current fiscal year.

In other Platform Specialty Products news, insider John David Tolbert acquired 16,000 shares of the business’s stock in a transaction on Monday, August 6th. The stock was purchased at an average price of $12.13 per share, for a total transaction of $194,080.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Pershing Square Capital Manage acquired 9,968,304 shares of the business’s stock in a transaction on Monday, August 6th. The stock was acquired at an average price of $12.10 per share, with a total value of $120,616,478.40. The disclosure for this purchase can be found here. Insiders acquired 10,281,137 shares of company stock valued at $124,380,356 in the last quarter. 5.40% of the stock is currently owned by company insiders.

A number of large investors have recently added to or reduced their stakes in the business. FMR LLC raised its position in Platform Specialty Products by 17.2% in the second quarter. FMR LLC now owns 30,966,786 shares of the specialty chemicals company’s stock worth $359,215,000 after acquiring an additional 4,533,865 shares in the last quarter. BlackRock Inc. increased its position in shares of Platform Specialty Products by 7.8% in the second quarter. BlackRock Inc. now owns 15,180,433 shares of the specialty chemicals company’s stock valued at $176,095,000 after buying an additional 1,102,550 shares in the last quarter. Dimensional Fund Advisors LP increased its position in shares of Platform Specialty Products by 19.2% in the second quarter. Dimensional Fund Advisors LP now owns 14,899,218 shares of the specialty chemicals company’s stock valued at $172,827,000 after buying an additional 2,398,849 shares in the last quarter. BlueMountain Capital Management LLC purchased a new position in shares of Platform Specialty Products in the second quarter valued at $45,154,000. Finally, MUFG Securities EMEA plc increased its position in shares of Platform Specialty Products by 227.7% in the second quarter. MUFG Securities EMEA plc now owns 3,015,000 shares of the specialty chemicals company’s stock valued at $34,974,000 after buying an additional 2,095,000 shares in the last quarter. Hedge funds and other institutional investors own 95.23% of the company’s stock.

About Platform Specialty Products

Platform Specialty Products Corporation produces and sells specialty chemical products worldwide. It operates through two segments, Performance Solutions and Agricultural Solutions. The Performance Solutions segment offers a range of specialty chemicals, such as surface and coating materials, functional conversion coatings, electronic assembly materials, water-based hydraulic control fluids, and photopolymers.

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