Shares of KMG Chemicals, Inc. (NYSE:KMG) rose 14.8% during trading on Tuesday following a better than expected earnings announcement. The stock traded as high as $63.58 and last traded at $63.34. Approximately 842,224 shares traded hands during mid-day trading, an increase of 687% from the average daily volume of 107,000 shares. The stock had previously closed at $55.19.

The specialty chemicals company reported $0.83 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.63 by $0.20. The company had revenue of $110.70 million during the quarter, compared to analyst estimates of $106.60 million. KMG Chemicals had a net margin of 7.09% and a return on equity of 17.45%. The firm’s revenue for the quarter was up 44.7% compared to the same quarter last year.

The company also recently declared a quarterly dividend, which will be paid on Friday, January 5th. Shareholders of record on Friday, December 22nd will be given a $0.03 dividend. The ex-dividend date of this dividend is Thursday, December 21st. This represents a $0.12 dividend on an annualized basis and a dividend yield of 0.19%. KMG Chemicals’s payout ratio is currently 6.25%.

A number of research firms have weighed in on KMG. Zacks Investment Research lowered shares of KMG Chemicals from a “hold” rating to a “sell” rating in a research report on Tuesday, October 31st. ValuEngine lowered shares of KMG Chemicals from a “buy” rating to a “hold” rating in a research report on Friday, December 1st. Finally, KeyCorp began coverage on shares of KMG Chemicals in a research report on Tuesday, November 21st. They issued an “overweight” rating and a $63.00 price target for the company. Two research analysts have rated the stock with a sell rating, one has given a hold rating and two have assigned a buy rating to the company. The company presently has a consensus rating of “Hold” and a consensus target price of $50.00.

In related news, major shareholder David L. Hatcher sold 12,000 shares of the company’s stock in a transaction on Tuesday, October 24th. The shares were sold at an average price of $54.83, for a total transaction of $657,960.00. Following the completion of the transaction, the insider now owns 1,499,097 shares in the company, valued at $82,195,488.51. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, major shareholder David L. Hatcher sold 3,000 shares of the company’s stock in a transaction on Wednesday, September 13th. The stock was sold at an average price of $48.69, for a total transaction of $146,070.00. Following the transaction, the insider now owns 1,577,097 shares of the company’s stock, valued at approximately $76,788,852.93. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 219,000 shares of company stock valued at $11,662,020. 6.10% of the stock is owned by company insiders.

Several large investors have recently modified their holdings of KMG. Vanguard Group Inc. boosted its position in shares of KMG Chemicals by 6.2% during the first quarter. Vanguard Group Inc. now owns 341,457 shares of the specialty chemicals company’s stock worth $15,731,000 after acquiring an additional 19,856 shares during the last quarter. Geode Capital Management LLC boosted its position in shares of KMG Chemicals by 2.6% during the first quarter. Geode Capital Management LLC now owns 74,167 shares of the specialty chemicals company’s stock worth $3,415,000 after acquiring an additional 1,878 shares during the last quarter. Goldman Sachs Group Inc. boosted its position in shares of KMG Chemicals by 10.5% during the first quarter. Goldman Sachs Group Inc. now owns 10,791 shares of the specialty chemicals company’s stock worth $497,000 after acquiring an additional 1,022 shares during the last quarter. Creative Planning bought a new position in shares of KMG Chemicals during the second quarter worth $105,000. Finally, Russell Investments Group Ltd. boosted its position in shares of KMG Chemicals by 894.2% during the second quarter. Russell Investments Group Ltd. now owns 34,609 shares of the specialty chemicals company’s stock worth $1,685,000 after acquiring an additional 31,128 shares during the last quarter. Hedge funds and other institutional investors own 56.20% of the company’s stock.

The company has a quick ratio of 1.64, a current ratio of 2.52 and a debt-to-equity ratio of 3.01. The company has a market capitalization of $822.70, a PE ratio of 24.25 and a beta of 0.55.

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KMG Chemicals Company Profile

KMG Chemicals, Inc manufactures, formulates and globally distributes specialty chemicals. The Company operates businesses selling electronic chemicals, industrial wood treating chemicals, and industrial valve lubricants and sealants. The Company operates through two segments: Electronic chemicals and Other chemicals.

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