Ashland stock touches 52-week low at $68.11 amid market shifts

Published 29/01/2025, 16:54
Ashland stock touches 52-week low at $68.11 amid market shifts

In a challenging market environment, Ashland Inc . (NYSE:ASH) stock has recorded a new 52-week low, dipping to $68.11. According to InvestingPro data, the company maintains a "GOOD" overall financial health score, with liquid assets exceeding short-term obligations and a solid current ratio of 2.52x. This latest price level reflects a notable decline in investor sentiment as the company navigates through a period marked by economic headwinds. Over the past year, Ashland’s stock has experienced a significant downturn, with a 1-year change showing a decrease of 15.29%. Despite these challenges, the company has maintained dividend payments for 55 consecutive years, demonstrating remarkable financial stability. This performance indicates a period of bearish momentum for the specialty chemicals company, as it grapples with market pressures and industry-specific challenges. Investors are closely monitoring the company’s strategies and potential catalysts that may influence its stock performance in the upcoming quarters. InvestingPro analysis suggests the stock is currently undervalued, with analysts setting price targets ranging from $81 to $105. For deeper insights and additional ProTips about Ashland, including management’s share buyback activities, check out the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Ashland Inc. has been the subject of several notable developments. The company’s CFO, J. Kevin Willis, has been appointed to the Board of Directors at Ingevity (NYSE:NGVT) Corporation, expanding their board to nine members. Ashland also announced the departure of its Vice President, Finance and Principal Accounting Officer, Eric F. Boni.

Ashland has made significant changes to its executive team and disclosed the outcomes of its annual stockholders’ meeting. The company ratified the appointment of Ernst & Young LLP as its independent registered public accounting firm for fiscal 2025 and approved a non-binding advisory resolution on the compensation of its executive officers.

Ashland plans to sell its Avoca business, a producer of Sclareolide, to Mane, a leading fragrance and flavors supplier. This transaction is expected to close in the first quarter of 2025.

In terms of financial targets, Ashland has maintained its EBITDA midpoint guidance for fiscal year 2025 at $450 million and set an ambitious fiscal year 2027 EBITDA target of $600 million.

Analysts from Mizuho (NYSE:MFG) Securities, BMO Capital Markets, and Deutsche Bank (ETR:DBKGn) adjusted their price targets for Ashland, reflecting operational challenges and a weaker performance in the China coatings market. These are the recent developments in the company’s operations.

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