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Ingevity Rises More Than 18% in 3 Months: What's Driving the Stock?
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Key Takeaways
NGVT stock rose 18.7% in 3 months, beating the specialty chemicals industry and the broader market.
NGVT unlocked value by selling its CTO refinery assets for $110M, with up to $19M tied to future milestones.
NGVT's acquisitions improved efficacy and margins, adding technologies and exposure to coatings and polymers.
Ingevity Corporation’s (NGVT - Free Report) shares have gained 18.7% over the past three months. The company has also outperformed the Zacks Chemical - Specialty industry’s 4.8% growth and the S&P 500’s 6.3% increase over the same period.
Image Source: Zacks Investment Research
Strategic Divestiture Taps Shareholder Value for NGVT
The company's portfolio optimization through the sale of its North Charleston crude tall oil (“CTO”) refinery assets and the majority of the Performance Chemicals Industrial Specialties product line to Mainstream Pine Products for $110 million in cash, with the possibility of zero to $19 million in contingent consideration on future business performance milestones, contributed to the share price spike.
Through the sale of CTO-based product lines and retaining the Pavement Technologies business and other lignin-based dispersant products, Ingevity is sharpening its focus on higher-margin, specialty applications while improving capital efficiency.
Acquisitions Strengthen Growth and Margins for Ingevity
Ingevity’s disciplined acquisition strategy has materially strengthened its portfolio and earnings quality. The acquisition of Georgia-Pacific’s pine chemicals has already paid off through better production efficiency, lower sourcing and logistics costs, and improved margins. Similarly, the Capa caprolactone acquisition brought in a differentiated technology platform with a wide range of applications across coatings, adhesives and specialty polymers, creating a sustainable and higher-quality revenue stream.
The Ozark Materials acquisition further expanded Ingevity’s exposure to the construction and infrastructure markets, positioning it to benefit from long-term infrastructure demand. Collectively, these acquisitions underscore Ingevity’s ability to deploy capital into profitable use.
The Zacks Consensus Estimate for AEM’s 2025 earnings is pegged at $7.85 per share, indicating a rise of 85.6%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 11.63%. AEM’s shares have gained 133.8% over the past year.
The Zacks Consensus Estimate for KGC’s 2025 earnings is pinned at $1.68 per share, indicating a 147.1% year-over-year increase. Its shares have surged 225.4% over the past year.
The Zacks Consensus Estimate for ASM’s 2025 fiscal-year earnings is pinned at 17 cents per share, indicating a 13.3% year-over-year increase. ASM’s shares have gained 491.2% over the past year.
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Ingevity Rises More Than 18% in 3 Months: What's Driving the Stock?
Key Takeaways
Ingevity Corporation’s (NGVT - Free Report) shares have gained 18.7% over the past three months. The company has also outperformed the Zacks Chemical - Specialty industry’s 4.8% growth and the S&P 500’s 6.3% increase over the same period.
Image Source: Zacks Investment Research
Strategic Divestiture Taps Shareholder Value for NGVT
The company's portfolio optimization through the sale of its North Charleston crude tall oil (“CTO”) refinery assets and the majority of the Performance Chemicals Industrial Specialties product line to Mainstream Pine Products for $110 million in cash, with the possibility of zero to $19 million in contingent consideration on future business performance milestones, contributed to the share price spike.
Through the sale of CTO-based product lines and retaining the Pavement Technologies business and other lignin-based dispersant products, Ingevity is sharpening its focus on higher-margin, specialty applications while improving capital efficiency.
Acquisitions Strengthen Growth and Margins for Ingevity
Ingevity’s disciplined acquisition strategy has materially strengthened its portfolio and earnings quality. The acquisition of Georgia-Pacific’s pine chemicals has already paid off through better production efficiency, lower sourcing and logistics costs, and improved margins. Similarly, the Capa caprolactone acquisition brought in a differentiated technology platform with a wide range of applications across coatings, adhesives and specialty polymers, creating a sustainable and higher-quality revenue stream.
The Ozark Materials acquisition further expanded Ingevity’s exposure to the construction and infrastructure markets, positioning it to benefit from long-term infrastructure demand. Collectively, these acquisitions underscore Ingevity’s ability to deploy capital into profitable use.
Ingevity Corporation Price and Consensus
Ingevity Corporation price-consensus-chart | Ingevity Corporation Quote
NGVT’s Zacks Rank & Key Picks
NGVT currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Agnico Eagle Mines Limited (AEM - Free Report) , Kinross Gold Corporation (KGC - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
At present, AEM and KGC sport a Zacks Rank #1 (Strong Buy) each, while ASM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AEM’s 2025 earnings is pegged at $7.85 per share, indicating a rise of 85.6%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 11.63%. AEM’s shares have gained 133.8% over the past year.
The Zacks Consensus Estimate for KGC’s 2025 earnings is pinned at $1.68 per share, indicating a 147.1% year-over-year increase. Its shares have surged 225.4% over the past year.
The Zacks Consensus Estimate for ASM’s 2025 fiscal-year earnings is pinned at 17 cents per share, indicating a 13.3% year-over-year increase. ASM’s shares have gained 491.2% over the past year.