Unveiling 4 Analyst Insights On Ingevity

In the latest quarter, 4 analysts provided ratings for Ingevity NGVT, showcasing a mix of bullish and bearish perspectives.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $51.5, a high estimate of $56.00, and a low estimate of $45.00. Highlighting a 2.83% decrease, the current average has fallen from the previous average price target of $53.00.

Investigating Analyst Ratings: An Elaborate Study

A clear picture of Ingevity's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Ingevity. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Ingevity compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Ingevity's stock. This examination reveals shifts in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Ingevity's market position. Stay informed and make well-informed decisions with our Ratings Table.

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Discovering Ingevity: A Closer Look

Ingevity Corp is a chemical manufacturer based in the United States. It conducts its operations through three segments, namely Performance Chemicals, Advanced Polymer Technologies, and Performance Materials. The bulk of its revenue is generated by the Performance Chemicals segment which deals with the manufacture and sale of specialty chemicals that find their use in a range of processes such as asphalt paving, oil exploration and production, agrochemicals, adhesives, lubricants, and publication inks. The Performance Materials segment, on the other hand, focuses on automotive carbon products used in automobiles. The Advanced Polymer Technologies segment produces caprolactone and caprolactone-based specialty polymers. The Company generates the majority of its revenue from North America.

A Deep Dive into Ingevity's Financials

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining Ingevity's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -13.37% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Materials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Ingevity's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -16.47%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Ingevity's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -9.34%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Ingevity's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -2.16%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Ingevity's debt-to-equity ratio surpasses industry norms, standing at 2.74. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.