PPG Industries Inc. (NYSE: PPG): The Best-Of-Breed For Investing?

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    BlackRock Fund Advisors recently announced the acquisition of new stake in PPG Industries Inc. (NYSE:PPG). The institutional investor has increased its shareholding in the Basic Materials company by 4.21% to 10.81 million shares with purchase of 0.44 million shares. This fresh investment now brings its stake to 4.58% valued currently at $1.15 billion. In addition, T. Rowe Price Associates, Inc. (I. raised its holdings by 2.29 million to 7.93 million shares. And ClearBridge Investments LLC has lifted its position by 16.85% or 0.95 million shares – to 6.57 million shares.

    With over 1.24 million PPG Industries Inc. (PPG) shares trading Tuesday and a closing price of $108.58 on the day, the dollar volume was approximately $134.35 million. The shares have shown a negative weekly performance of -1.43% and its price on 07/28/20 lost nearly -1.50%. Currently, there are 236.60M common shares owned by the public and among those 234.99M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 27 analysts who have offered their price forecasts for PPG have a consensus price objective of $122.83. The analysts have set the share’s price value over the next 12 months at a high of $137.00 and a low of $110.00 should the stock experience a downside. Incidentally, analysts’ outlook for the PPG Industries Inc. stock is 2.30 for the next 12 months. The average price target is 4.03% above its last price level and an upside to the estimated low will see the stock gain 1.29% over that period. But an upside of 20.74% will see the stock hit the forecast high price target while mean target price for the stock is $125.00.

    Insiders at the company have transacted a total of 38 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 23 of these insider trades were purchases, accounting for 115,610 shares. Insider sales of the common stock occurred on 15 occasions, with total insider shares sold totaling 74,502 shares.

    The top 3 mutual fund holders in PPG Industries Inc. are MFS Value Fund, Vanguard Total Stock Market Index, and Vanguard 500 Index Fund. MFS Value Fund owns 6.91 million shares of the company’s stock, all valued at over $733.3 million. The company sold -0.44 million shares recently to bring their total holdings to about 2.93% of the shares outstanding. Vanguard Total Stock Market Index sold -0.1 million shares to see its total holdings shrink to 6.73 million shares valued at over $713.47 million and representing 2.85% of the shares outstanding. Vanguard 500 Index Fund bought 64251.0 shares to bring its total holdings to over 4.89 million shares at a value of $518.97 million. Vanguard 500 Index Fund now owns shares totaling to 2.07% of the shares outstanding.

    Shares of PPG Industries Inc. (NYSE: PPG) opened at $109.85, down -$0.38 from a prior closing price of $110.23. However, the script later closed the day at $108.58, down -1.50%. The company’s stock has a 5-day price change of -1.43% and 18.68% over the past three months. PPG shares are trading -18.66% year to date (YTD), with the 12-month market performance down to -8.32% lower. It has a 12-month low price of $69.77 and touched a high of $134.36 over the same period. Currently, 1.24 million shares have been traded, compared to an average intraday trading volume of 1.81 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -0.80%, 2.96%, and -2.36% respectively.

    Institutional ownership of PPG Industries Inc. (NYSE: PPG) shares accounts for 78.60% of the company’s 236.60M shares outstanding. Mutual fund holders own 33.86%, while other institutional holders and individual stakeholders account for 45.00% and 0.85% respectively.

    It has a market capitalization of $25.68B and a beta (3y monthly) value of 1.28. The stock’s trailing 12-month PE ratio is 25.78, while the earnings-per-share (ttm) stands at $4.21. The company has a PEG of 5.54 and a Quick Ratio of 1.00 with the debt-to-equity ratio at 1.30. Price movements for the stock have been influenced by the stock’s volatility, which stands at 1.90% over the week and 2.72% over the month.

    Analysts forecast that PPG Industries Inc. (PPG) will achieve an EPS of $1.25 for the current quarter, $1.28 for the next quarter and $6.16 for 2021. The lowest estimate earnings-per-share for the quarter is $1.14 while analysts give the company a high EPS estimate of $1.44. Comparatively, EPS for the current quarter was $1.67 a year ago. Earnings per share for the fiscal year are expected to decrease by -2.20%, and 31.54% over the next financial year. EPS should shrink at an annualized rate of 4.66% over the next five years, compared to 6.80% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 27 brokerage firm advisors rate PPG Industries Inc. (PPG) as a “Moderate Buy” at a consensus score of 2.30. Specifically, 13 Wall Street analysts polled rate the stock as a buy, while 12 of the 27 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the PPG, a number of firms have released research notes about the stock. SunTrust stated their Buy rating for the stock in a research note on July 20, 2020, with the firm’s price target at. BMO Capital Markets coverage for the PPG Industries Inc. (PPG) stock in a research note released on June 30, 2020 offered a Outperform rating with a price target of $125. JP Morgan was of a view on May 06, 2020 that the stock is Overweight, while CFRA gave the stock Hold rating on April 28, 2020, issuing a price target of. Berenberg on their part issued Hold rating on March 25, 2020.

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