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W.R. Grace (GRA) shares rallied 6.4% in the last trading session to close at $68.38. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 7.1% gain over the past four weeks.
GRA’s shares gained after it agreed to be acquired by privately-held Standard Industries Holdings in an all-cash transaction valued at roughly $7 billion. Under the deal terms, Standard Industries Holdings will purchase all of the outstanding shares of W. R. Grace common stock for $70.00 per share in cash. The transaction, which is subject to customary closing conditions, including approval by W. R. Grace shareholders and certain regulatory approvals, is expected to close in the fourth quarter of 2021. After the completion of the deal, W. R. Grace will operate as a standalone company within the portfolio of Standard Industries Holdings.
Price and Consensus
This chemical and materials manufacturing company is expected to post quarterly earnings of $0.73 per share in its upcoming report, which represents a year-over-year change of +2.8%. Revenues are expected to be $454.55 million, up 7.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For W.R. Grace, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on GRA going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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W.R. Grace & Co. (GRA) : Free Stock Analysis Report
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