PPG Industries, Inc. (PPG): What’s Inside the Story?

On Wednesday, shares of PPG Industries, Inc. (NYSE:PPG) marked $104.87 per share versus a previous $104.76 closing price. With having a 0.11% gain, an insight into the fundamental values of PPG Industries, Inc., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. PPG showed a fall of -21.44% within its YTD performance, with highs and lows between $69.77 – $134.36 during the period of 52 weeks, compared to the simple moving average of -6.69% in the period of the last 200 days.

JP Morgan equity researchers changed the status of PPG Industries, Inc. (NYSE: PPG) shares from “Neutral” to a “Overweight” rating in the report published on May 6th, 2020. Other analysts, including CFRA, also published their reports on PPG shares. CFRA repeated the rating from the previous report, marking PPG under “Hold” rating, in the report published on April 28th, 2020. Additionally, PPG shares got another “Hold” rating from Berenberg. On the other hand, Berenberg Initiated the “Buy” rating for PPG shares, as published in the report on November 6th, 2019. Morgan Stanley seems to be going bullish on the price of PPG shares, based on the price prediction for PPG, indicating that the shares will jump to $130, giving the shares “Equal-Weight” rating based on their report from November 1st, 2019. Another “Neutral” rating came from JP Morgan, providing a prediction for $130 price target according to the report published in October 18th, 2019.

PPG Industries, Inc. (PPG) Analysis

The present dividend yield for PPG owners is set at 0.02, marking the return investors will get regardless of the company’s performance in the upcoming period. However, in order for the company to be able to pay its dividends, just like it is the case with PPG Industries, Inc., the company needs to provide a healthy cash flow, currently at the value of 21.86. In addition, the growth of sales from quarter to quarter is recording -6.80%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of PPG Industries, Inc. (PPG) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 23.10% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 1.00 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while PPG is currently recording an average of 2.08M in volumes. The volatility of the stock on monthly basis is set at 3.05%, while the weekly volatility levels are marked at 4.42%with -3.82% of loss in the last seven days. Additionally, long-term investors are predicting the target price of $111.14, indicating growth from the present price of $104.87, which can represent yet another valuable research and analysis points that can help you decide whether to invest in PPG or pass.

What to Look for When Analyzing PPG Industries, Inc. Shares?

PPG Industries, Inc. (PPG) is based in the USA and it represents one of the well-known company operating with Basic Materials sector. If you wish to compare PPG shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 21.28 for PPG Industries, Inc., while the value 17.53 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 4.93 is supported by the yearly EPS growth of -2.20%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 0.10%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 79.00% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in PPG Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in PPG in the recent period. That is how BlackRock Fund Advisors now has an increase position in PPG by 4.21% in the first quarter, owning 10.81 million shares of PPG stocks, with the value of $1.1 billion after the purchase of an additional 437,052 shares during the last quarter. In the meanwhile, T. Rowe Price Associates, Inc. also increased their stake in PPG shares changed 40.62% in the first quarter, which means that the company now owns 7.93 million shares of company, all valued at $806.09 million after the acquisition of additional 2,290,161 shares during the last quarter.

ClearBridge Investments LLC acquired a new position in PPG Industries, Inc. during the first quarter, with the value of $668.11 million, and JPMorgan Investment Management, I increased their stake in the company’s shares by 4.94% in the first quarter, now owning 190,887 shares valued at $412.59 million after the acquisition of the additional 4.06 million shares during the last quarter. In the end, Charles Schwab Investment Managem increased their position by 1.11% during the first quarter, now owning 3.52 million PPG shares, now holding the value of $357.65 million in PPG with the purchase of the additional 2,389,788 shares during the period of the last quarter. At the present, 79.00% of PPG shares are in the ownership of institutional investors.