Wells Fargo & Company has downgraded shares of Air Products and Chemicals (NYSE: APD) from an “overweight” rating to an “equal weight” rating, according to a research report released on Friday. The investment firm has set a target price of $250.00 for the company’s stock, reflecting a cautious outlook on the basic materials sector.
This downgrade follows a series of similar evaluations from other financial institutions. Notably, on December 11, 2023, UBS Group lowered its rating on Air Products from “buy” to “neutral,” adjusting its price target from $310.00 to $250.00. Additionally, Deutsche Bank Aktiengesellschaft established a price target of $255.00 on December 10, 2023, while The Goldman Sachs Group previously set a target of $335.00 on October 1, 2023.
Analyst Ratings and Performance Insights
According to data from MarketBeat.com, Air Products has received a mix of ratings from analysts. One equity research analyst has assigned a “Strong Buy” rating, while seven have rated it as “Buy,” another seven have given “Hold,” and one has issued a “Sell” rating. The consensus rating currently stands at “Moderate Buy” with an average target price of $292.47.
Air Products and Chemicals recently reported its earnings on November 6, 2023. The company posted earnings per share (EPS) of $3.39, slightly surpassing the consensus estimate of $3.38. However, the firm reported a negative net margin of 3.28% and a positive return on equity of 15.18%. Revenue for the quarter was reported at $3.13 billion, which fell short of analysts’ expectations of $3.18 billion. Year-over-year comparisons show a decrease of 0.6% in revenue, while last year’s EPS stood at $3.56.
Looking ahead, Air Products has provided guidance for fiscal year 2026, forecasting an EPS range of $12.850 to $13.150 and a first quarter guidance between $2.950 and $3.100.
Dividend Declaration and Institutional Holdings
The company has also announced a quarterly dividend of $1.79 per share, scheduled for payment on February 9, 2024. Investors on record as of January 2, 2024 will receive this dividend, which represents an annualized dividend of $7.16 and a yield of 3.0%. Notably, the company’s payout ratio is currently reported at -402.25%.
In terms of institutional trading, several hedge funds have adjusted their positions in Air Products recently. The Saudi Central Bank acquired a new stake valued at approximately $26,000 during the first quarter. Other notable investments include Traub Capital Management LLC and Twin Peaks Wealth Advisors LLC, both purchasing new positions valued around $28,000 in the second quarter. Currently, institutional investors hold 81.66% of the company’s stock.
Headquartered in Allentown, Pennsylvania, Air Products and Chemicals is a global leader in industrial gases and related equipment. The company specializes in the production and delivery of atmospheric gases such as oxygen, nitrogen, and argon, along with specialty gases used in various industrial applications. Their extensive portfolio includes both packaged and bulk gas supply, pipeline distribution, and on-site generation systems.
