AdvanSix (NYSE:ASIX) Shares Gap Down on Disappointing Earnings

AdvanSix (NYSE:ASIX)’s stock price gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $23.94, but opened at $21.05. AdvanSix shares last traded at $21.0850, with a volume of 151,060 shares traded.

The company reported ($0.50) EPS for the quarter, missing analysts’ consensus estimates of ($0.48) by ($0.02). The business had revenue of $404.18 million for the quarter, compared to the consensus estimate of $364.90 million. AdvanSix had a return on equity of 6.97% and a net margin of 3.24%.

AdvanSix Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, March 23rd. Investors of record on Monday, March 9th were given a dividend of $0.16 per share. The ex-dividend date was Monday, March 9th. This represents a $0.64 dividend on an annualized basis and a yield of 3.0%. AdvanSix’s dividend payout ratio is 35.36%.

Wall Street Analyst Weigh In

ASIX has been the topic of a number of research analyst reports. Wall Street Zen upgraded AdvanSix from a “hold” rating to a “buy” rating in a research report on Saturday, April 11th. Truist Financial upped their price objective on AdvanSix from $19.00 to $20.00 and gave the stock a “hold” rating in a report on Monday, February 23rd. Loop Capital set a $25.00 price objective on AdvanSix in a report on Thursday, March 12th. Finally, Weiss Ratings raised AdvanSix from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday, April 29th. One investment analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and an average price target of $25.67.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Aegis Financial Corp bought a new stake in shares of AdvanSix during the 4th quarter valued at $20,927,000. Millennium Management LLC bought a new stake in shares of AdvanSix during the 4th quarter valued at $11,479,000. Alliancebernstein L.P. raised its position in shares of AdvanSix by 55.3% during the 3rd quarter. Alliancebernstein L.P. now owns 948,491 shares of the company’s stock valued at $18,382,000 after acquiring an additional 337,908 shares during the last quarter. Invenomic Capital Management LP bought a new stake in shares of AdvanSix during the 3rd quarter valued at $6,054,000. Finally, Goldman Sachs Group Inc. raised its position in shares of AdvanSix by 149.3% during the 4th quarter. Goldman Sachs Group Inc. now owns 378,610 shares of the company’s stock valued at $6,550,000 after acquiring an additional 226,756 shares during the last quarter. Institutional investors and hedge funds own 86.39% of the company’s stock.

AdvanSix Stock Down 11.6%

The firm’s 50-day simple moving average is $22.28 and its 200 day simple moving average is $18.96. The company has a market cap of $570.72 million, a P/E ratio of 11.61 and a beta of 1.33. The company has a debt-to-equity ratio of 0.26, a quick ratio of 0.52 and a current ratio of 1.13.

About AdvanSix

AdvanSix, Inc (NYSE: ASIX) is an integrated chemical manufacturer specializing in the production of nylon 6 intermediates and related co‐products. Established as a publicly traded spin‐off from Honeywell Specialty Chemicals in June 2016, the company is headquartered in Parsippany, New Jersey.

The company’s principal product is caprolactam, the key building block for nylon 6 resin, used in fibers and engineering plastics across industries. In addition to caprolactam and nylon 6 resin, AdvanSix produces ammonium sulfate fertilizer and industrial chemicals such as phenol and acetone.