UL Solutions (NYSE:ULS) Shares Down 9.2% – Here’s What Happened

UL Solutions Inc. (NYSE:ULS)’s stock price fell 9.2% on Tuesday . The company traded as low as $83.63 and last traded at $82.7180. Approximately 143,174 shares traded hands during mid-day trading, a decline of 85% from the average session volume of 927,823 shares. The stock had previously closed at $91.05.

UL Solutions News Roundup

Here are the key news stories impacting UL Solutions this week:

• Positive Sentiment: UL Solutions reported second-quarter earnings of $0.59 per share, above the $0.56 consensus estimate, while revenue reached $816 million, slightly exceeding expectations. Revenue grew 5.2% year over year, and earnings improved from $0.52 in the prior-year quarter. UL Solutions Q2 Earnings Report
• Positive Sentiment: Management indicated a potential 27% adjusted EBITDA margin for 2026. Analysts also highlighted 6.6% organic growth and 140 basis points of margin expansion in the quarter. The planned Eurofins E&E acquisition could provide an additional growth engine, with leverage viewed as manageable. UL Solutions Margin Outlook
• Neutral Sentiment: UBS reduced its price target to $96 from $110 but maintained a “buy” rating, while Wells Fargo cut its target to $104 from $120 and kept an “overweight” rating. The lower targets suggest more cautious expectations, although both firms still see meaningful upside. UBS Price Target Update Wells Fargo Price Target Update
• Negative Sentiment: CEO Jennifer Scanlon sold 12,500 shares worth approximately $1.15 million, reducing her direct stake by 7.61%. She still owns 151,724 shares, limiting the significance of the sale, but insider selling can weigh on investor sentiment. CEO Stock Sale
• Negative Sentiment: Despite strong operating performance, rising stock-based compensation and higher capital expenditures are pressuring free cash flow. At roughly 32 times earnings, valuation leaves the stock sensitive to any slowdown or weaker cash-generation outlook. UL Solutions Investment Analysis

Analysts Set New Price Targets

Several analysts have weighed in on ULS shares. JPMorgan Chase & Co. boosted their price target on shares of UL Solutions from $88.00 to $108.00 and gave the stock a “neutral” rating in a research note on Thursday, May 7th. BNP Paribas Exane assumed coverage on UL Solutions in a report on Monday, April 20th. They set a “neutral” rating and a $95.00 target price for the company. Raymond James Financial restated an “outperform” rating and set a $115.00 price target on shares of UL Solutions in a research report on Wednesday, May 6th. Citigroup decreased their price target on UL Solutions from $106.40 to $82.80 and set a “neutral” rating on the stock in a research note on Wednesday. Finally, Wall Street Zen downgraded UL Solutions from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. Six analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat.com, UL Solutions presently has an average rating of “Moderate Buy” and a consensus target price of $96.78.

UL Solutions Trading Up 0.8%

The company has a quick ratio of 1.16, a current ratio of 1.42 and a debt-to-equity ratio of 0.19. The stock’s fifty day moving average price is $92.51 and its two-hundred day moving average price is $87.36. The company has a market capitalization of $15.92 billion, a PE ratio of 31.99, a price-to-earnings-growth ratio of 3.01 and a beta of 0.71.

UL Solutions (NYSE:ULS) last posted its earnings results on Tuesday, August 4th. The company reported $0.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.03. The company had revenue of $816.00 million for the quarter, compared to analysts’ expectations of $813.62 million. UL Solutions had a return on equity of 28.81% and a net margin of 16.02%.UL Solutions’s quarterly revenue was up 5.2% on a year-over-year basis. During the same period last year, the firm earned $0.52 earnings per share. Sell-side analysts anticipate that UL Solutions Inc. will post 2.13 earnings per share for the current year.

UL Solutions Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 8th. Stockholders of record on Friday, May 29th were given a $0.145 dividend. This represents a $0.58 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date was Friday, May 29th. UL Solutions’s dividend payout ratio (DPR) is currently 23.48%.

Insider Activity

In related news, CAO Karen K. Pepping sold 725 shares of the company’s stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of $97.74, for a total transaction of $70,861.50. Following the completion of the transaction, the chief accounting officer owned 8,082 shares in the company, valued at $789,934.68. This represents a 8.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Gitte Schjotz sold 12,015 shares of the firm’s stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $99.71, for a total value of $1,198,015.65. Following the completion of the sale, the insider directly owned 69,206 shares of the company’s stock, valued at $6,900,530.26. The trade was a 14.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 57,705 shares of company stock valued at $5,634,995. 1.20% of the stock is owned by insiders.

Hedge Funds Weigh In On UL Solutions

Hedge funds and other institutional investors have recently modified their holdings of the stock. Parallel Advisors LLC boosted its position in UL Solutions by 349.3% during the 1st quarter. Parallel Advisors LLC now owns 301 shares of the company’s stock valued at $26,000 after acquiring an additional 234 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in shares of UL Solutions by 3,070.0% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 634 shares of the company’s stock valued at $46,000 after purchasing an additional 614 shares during the period. Rhumbline Advisers purchased a new position in shares of UL Solutions in the 1st quarter valued at approximately $49,000. CIBC Private Wealth Group LLC boosted its position in shares of UL Solutions by 112.7% during the fourth quarter. CIBC Private Wealth Group LLC now owns 904 shares of the company’s stock valued at $71,000 after purchasing an additional 479 shares in the last quarter. Finally, GAMMA Investing LLC boosted its position in shares of UL Solutions by 42.4% during the second quarter. GAMMA Investing LLC now owns 823 shares of the company’s stock valued at $84,000 after purchasing an additional 245 shares in the last quarter.

About UL Solutions

UL Solutions (NYSE: ULS) is a global safety science company that provides testing, inspection, certification, advisory and digital solutions designed to help organizations manage risk, ensure regulatory compliance and drive innovation. With roots dating back to 1894 when it was founded as Underwriters’ Electrical Bureau, the company rebranded as UL Solutions following its initial public offering in 2022. Headquartered in Northbrook, Illinois, UL Solutions operates independently to serve a broad range of industries with an emphasis on product safety, performance and sustainability.

The company’s core services include standards development, product testing and certification for sectors such as building products, consumer electronics, automotive, life sciences, energy and industrial equipment.