uploads///Part  ASH

Ashland Hikes Purelam Prices: Stock at All-Time High


Jul. 16 2018, Updated 12:05 p.m. ET

Ashland raises prices on Purelam products

On July 9, Ashland (ASH) announced a price hike for its Purelam and Purelam Fastcure line of products, effective July 23. The price increase is in the range of 2%–9%. Ashland cited the increase in raw material costs as the primary reason for the price increase.

Purelam is a polyurethane adhesive system used for bonding packaging materials. It has been approved by the FDA for packaging snacks, chocolates, cheese, meat, and more. The price increase could be positive for Ashland since it could help improve its revenue, provided the volumes don’t drop. The impact of the price increase will be more visible in Ashland’s fourth-quarter earnings.

Article continues below advertisement

ASH stock

The upward revision of ASH’s target price by JPMorgan (JPM) helped Ashland stock rise 3.3% and close at $81.18 for the week ended July 13. The stock closed at an all-time high and traded at 9.7% above its 100-day moving average of $74.02, which indicates an upward trend. On a YTD (year-to-date) basis, Ashland stock has risen 14%. However, investors should be cautious since Ashland’s RSI (relative strength index) is at 67 and moving very close to an overbought position.

Ashland has outperformed the Invesco Russell MidCap Pure Value ETF (PXMV), which declined 0.4% in the week. PXMV invests 1.3% of its portfolio in Ashland. It also provides exposure to Dish Network (DISH) and CNA Financial (CNA) with weights of 1.1% and 1.1%, respectively, as of July 13.


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.