Stock Traders Buy High Volume of Call Options on Ecolab (NYSE:ECL)

Ecolab Inc. (NYSE:ECL) was the recipient of some unusual options trading activity on Wednesday. Stock traders acquired 2,926 call options on the stock. This represents an increase of approximately 241% compared to the average volume of 858 call options.

Ecolab Stock Down 1.3%

Shares of NYSE ECL traded down $3.59 during midday trading on Wednesday, reaching $274.52. The company’s stock had a trading volume of 159,153 shares, compared to its average volume of 1,472,618. The company has a current ratio of 1.84, a quick ratio of 1.57 and a debt-to-equity ratio of 1.18. Ecolab has a fifty-two week low of $243.15 and a fifty-two week high of $309.27. The stock has a 50 day simple moving average of $278.85 and a 200-day simple moving average of $272.66. The stock has a market capitalization of $76.95 billion, a price-to-earnings ratio of 36.84, a PEG ratio of 2.71 and a beta of 0.88.

Ecolab (NYSE:ECL) last released its quarterly earnings data on Tuesday, July 28th. The basic materials company reported $2.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.08 by $0.01. Ecolab had a return on equity of 22.72% and a net margin of 12.57%.The firm had revenue of $4.42 billion for the quarter, compared to analyst estimates of $4.38 billion. During the same quarter in the prior year, the company earned $1.89 earnings per share. The business’s revenue for the quarter was up 9.7% compared to the same quarter last year. Ecolab has set its Q3 2026 guidance at 2.130-2.230 EPS. Equities research analysts predict that Ecolab will post 8.17 earnings per share for the current year.

Ecolab Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Tuesday, September 15th will be issued a $0.73 dividend. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $2.92 dividend on an annualized basis and a dividend yield of 1.1%. Ecolab’s dividend payout ratio is 39.19%.

Analyst Ratings Changes

A number of research firms have recently weighed in on ECL. Mizuho raised their price target on Ecolab from $325.00 to $327.00 and gave the stock an “outperform” rating in a research note on Wednesday, July 29th. Deutsche Bank Aktiengesellschaft increased their price objective on Ecolab from $325.00 to $335.00 and gave the stock a “buy” rating in a report on Thursday, July 9th. Robert W. Baird set a $305.00 price objective on shares of Ecolab in a research report on Wednesday, July 29th. Wells Fargo & Company boosted their target price on shares of Ecolab from $275.00 to $295.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 30th. Finally, JPMorgan Chase & Co. increased their price target on shares of Ecolab from $295.00 to $305.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $327.56.

Insider Activity at Ecolab

In related news, EVP Benjamin Clark bought 1,000 shares of the business’s stock in a transaction on Thursday, June 11th. The stock was bought at an average price of $263.83 per share, for a total transaction of $263,830.00. Following the transaction, the executive vice president directly owned 1,083 shares in the company, valued at $285,727.89. This represents a 1,204.82% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Christophe Beck sold 17,862 shares of the business’s stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $280.14, for a total transaction of $5,003,860.68. Following the transaction, the chief executive officer owned 72,932 shares in the company, valued at approximately $20,431,170.48. This represents a 19.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of ECL. Brighton Jones LLC boosted its position in shares of Ecolab by 164.7% during the fourth quarter. Brighton Jones LLC now owns 3,700 shares of the basic materials company’s stock valued at $867,000 after buying an additional 2,302 shares during the last quarter. Sivia Capital Partners LLC grew its stake in shares of Ecolab by 39.8% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,384 shares of the basic materials company’s stock worth $373,000 after acquiring an additional 394 shares during the period. Schnieders Capital Management LLC. raised its position in shares of Ecolab by 22.9% in the second quarter. Schnieders Capital Management LLC. now owns 1,166 shares of the basic materials company’s stock valued at $314,000 after purchasing an additional 217 shares during the period. NewEdge Advisors LLC lifted its position in shares of Ecolab by 0.8% during the second quarter. NewEdge Advisors LLC now owns 21,096 shares of the basic materials company’s stock worth $5,684,000 after acquiring an additional 171 shares in the last quarter. Finally, CIBC Asset Management Inc lifted its holdings in Ecolab by 49.4% during the 2nd quarter. CIBC Asset Management Inc now owns 58,421 shares of the basic materials company’s stock worth $15,741,000 after purchasing an additional 19,324 shares in the last quarter. Institutional investors and hedge funds own 74.91% of the company’s stock.

Ecolab Company Profile

Ecolab Inc (NYSE:ECL) provides water, hygiene, infection prevention and technology solutions to businesses and institutions worldwide. Its customers include restaurants, hotels, hospitals, manufacturers, food and beverage companies, retailers and other organizations that rely on safe, efficient and sustainable operating environments.

The company’s offerings include cleaning and sanitizing products, water-treatment and process-management systems, food-safety programs, infection-prevention solutions and pest-elimination services.