Zacks Investment Research downgraded shares of KMG Chemicals, Inc. (NYSE:KMG) from a hold rating to a sell rating in a research note published on Tuesday.

According to Zacks, “KMG Chemicals manufactures, markets and distributes specialty, niche chemicals. The company manufactures, markets and distributes three wood preserving chemicals, pentachlorophenol, creosote and sodium pentachlorophenate, to industrial customers engaged in the wood preserving business. The company’s customers use these preservatives to treat wood and supply the treated wood products to end-users in a variety of industries, principally the railroad, utility and construction industries. “

Separately, BidaskClub cut KMG Chemicals from a sell rating to a strong sell rating in a report on Saturday, August 12th.

KMG Chemicals (NYSE KMG) opened at $54.58 on Tuesday. The company has a debt-to-equity ratio of 3.01, a current ratio of 2.52 and a quick ratio of 1.64. The firm has a market cap of $819.57 million, a PE ratio of 24.22 and a beta of 0.56.

KMG Chemicals (NYSE:KMG) last posted its quarterly earnings data on Monday, October 16th. The specialty chemicals company reported $0.69 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.53 by $0.16. KMG Chemicals had a return on equity of 17.45% and a net margin of 7.09%. The company had revenue of $96.26 million during the quarter, compared to analysts’ expectations of $96.00 million. The company’s revenue was up 27.8% on a year-over-year basis. analysts forecast that KMG Chemicals will post 3.12 earnings per share for the current year.

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The company also recently announced a quarterly dividend, which was paid on Monday, October 16th. Shareholders of record on Tuesday, October 10th were issued a $0.03 dividend. This represents a $0.12 annualized dividend and a dividend yield of 0.22%. The ex-dividend date of this dividend was Friday, October 6th. KMG Chemicals’s dividend payout ratio is 6.25%.

In other KMG Chemicals news, major shareholder David L. Hatcher sold 3,000 shares of the company’s stock in a transaction on Tuesday, August 8th. The stock was sold at an average price of $49.67, for a total value of $149,010.00. Following the completion of the sale, the insider now directly owns 1,655,097 shares in the company, valued at approximately $82,208,667.99. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, major shareholder David L. Hatcher sold 9,000 shares of the company’s stock in a transaction on Wednesday, August 9th. The stock was sold at an average price of $49.49, for a total value of $445,410.00. Following the completion of the sale, the insider now owns 1,655,097 shares of the company’s stock, valued at $81,910,750.53. The disclosure for this sale can be found here. Insiders sold a total of 252,000 shares of company stock valued at $12,893,220 over the last quarter. Company insiders own 6.90% of the company’s stock.

Hedge funds have recently modified their holdings of the business. Creative Planning purchased a new stake in shares of KMG Chemicals in the 2nd quarter worth $105,000. Legal & General Group Plc lifted its holdings in shares of KMG Chemicals by 23.2% in the 2nd quarter. Legal & General Group Plc now owns 2,198 shares of the specialty chemicals company’s stock worth $106,000 after buying an additional 414 shares during the period. Oppenheimer Asset Management Inc. lifted its stake in shares of KMG Chemicals by 59.9% during the 2nd quarter. Oppenheimer Asset Management Inc. now owns 2,620 shares of the specialty chemicals company’s stock worth $128,000 after purchasing an additional 981 shares during the last quarter. Victory Capital Management Inc. purchased a new stake in shares of KMG Chemicals during the 3rd quarter worth $155,000. Finally, Russell Investments Group Ltd. lifted its stake in shares of KMG Chemicals by 28.8% during the 1st quarter. Russell Investments Group Ltd. now owns 3,481 shares of the specialty chemicals company’s stock worth $160,000 after purchasing an additional 778 shares during the last quarter. Institutional investors and hedge funds own 58.43% of the company’s stock.

About KMG Chemicals

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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