uploads///Part  Axta

Axalta Launches the 1st Shatter-Proof Glass Coating


Oct. 9 2017, Published 11:48 a.m. ET

Axalta’s new product launch

The Glass division of Spencer Coatings, a company acquired by Axalta (AXTA) in June 2017, has launched a water-based coating that keeps all the glass in place if the glass shatters. This is achieved with a coating that is an invisible membrane that is used on glass surfaces. Axalta has also mentioned that it has completed successful testing with the largest pharmaceutical glass bottle manufacturer in the world.

The new product could also cater to the glass bottles that are used in liquid fragrances, perfumes, and beverages.

Article continues below advertisement

Axalta’s stock performance

Axalta made impressive an impressive gain of 5.6% and closed at $30.53. However, the strong gains failed to trade above the 100-day moving average price. The stock was trading 1.2% below the 100-day moving average price of $30.90, indicating a prevailing weakness in the stock.

On a YTD (year-to-date) basis, the stock has returned 12.3%, but analysts expect more upside in the stock and have projected a price target of $32.53 over the next 12-months. This implies a return potential of 6.6% over the closing price as of October 6, 2017.

AXTA’s 14-day RSI (relative strength index) level of 71 indicates that the stock has temporarily moved into an overbought situation. This suggests that many investors will likely be cautious going forward as there could be selling pressure.

Investors can indirectly hold AXTA by investing in the iShares US Basic Materials ETF (IYM), which has 1.1% of its holdings in Axalta. The other holdings of the fund include Monsanto (MON), Praxair (PX), and Air Products, and Chemicals (APD), which had weights of 8.6%, 6.6%, and 5.4%, respectively, as of October 6, 2017.


More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.