Axalta’s new collaboration
On December 21, Axalta (AXTA) announced that it entered into a collaboration with Allure Industries—an Indonesian-based architectural product specialist company. The collaboration was formed by Axalta to launch its Colorista—an architectural powder coating. However, Axalta didn’t disclose the financial aspects of the collaboration.
The launch was held in Jakarta. More than 150 architects and designers across Indonesia took part in the event. Axalta’s powder coating technology meets the international standard with zero volatile organic compounds. Axalta claims that its powder coating technology is more durable, withstands the weather, is abrasion and corrosion resistant, and provides excellent finishes. The powder coating technology also comes in a wide range of colors.
Franck Derouen, the global director of Axalta’s Architectural Coatings business, said, “Colour is one of Axalta’s passions. We develop colours that capture the imagination and channel the creativity of architects and designers all over the world. We hope that the beauty of the Colorista collection, enhanced by Allure’s excellent application process, will inspire the architects and designers to create more iconic architectural projects in the future.”
Axalta’s stock price update
In a falling market, Axalta stock gained 0.5% and closed at $22.35 for the week ending December 21. Despite the gains, Axalta traded 17.4% below its 100-day moving average price of $27.07, which indicates the downward trend in the stock. Axalta’s 100-day moving average has fallen from a high of $32.9 to the current levels. On a year-to-date basis, Axalta has made investors poorer by 30.9%. RPM International (RPM) has gained 11.4%, while Sherwin-Williams (SHW) and PPG Industries (PPG) have declined 8.2% and 17.5%, respectively.
Axalta’s 14-day RSI (relative strength index) is at 36, which indicates that the stock isn’t overbought or oversold. An RSI of 30 and below suggests that the stock is oversold, while an RSI of 70 and above suggests that the stock is overbought.
Axalta outperformed the iShares US Basic Materials ETF (IYM), which fell 5.6% last week. IYM has invested 0.9% of its portfolio in Axalta stock as of December 21.