Ingevity Rises More Than 18% in 3 Months: What's Driving the Stock?

Ingevity Corporation’s NGVT shares have gained 18.7% over the past three months. The company has also outperformed the Zacks Chemical - Specialty industry’s 4.8% growth and the S&P 500’s 6.3% increase over the same period.

Strategic Divestiture Taps Shareholder Value for NGVT

The company's portfolio optimization through the sale of its North Charleston crude tall oil (“CTO”) refinery assets and the majority of the Performance Chemicals Industrial Specialties product line to Mainstream Pine Products for $110 million in cash, with the possibility of zero to $19 million in contingent consideration on future business performance milestones, contributed to the share price spike.

Through the sale of CTO-based product lines and retaining the Pavement Technologies business and other lignin-based dispersant products, Ingevity is sharpening its focus on higher-margin, specialty applications while improving capital efficiency. 

Acquisitions Strengthen Growth and Margins for Ingevity

Ingevity’s disciplined acquisition strategy has materially strengthened its portfolio and earnings quality. The acquisition of Georgia-Pacific’s pine chemicals has already paid off through better production efficiency, lower sourcing and logistics costs, and improved margins. Similarly, the Capa caprolactone acquisition brought in a differentiated technology platform with a wide range of applications across coatings, adhesives and specialty polymers, creating a sustainable and higher-quality revenue stream.

The Ozark Materials acquisition further expanded Ingevity’s exposure to the construction and infrastructure markets, positioning it to benefit from long-term infrastructure demand. Collectively, these acquisitions underscore Ingevity’s ability to deploy capital into profitable use.

Ingevity Corporation Price and Consensus

Ingevity Corporation price-consensus-chart | Ingevity Corporation Quote

NGVT’s Zacks Rank & Key Picks

NGVT currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are Agnico Eagle Mines Limited AEM, Kinross Gold Corporation KGC and Avino Silver & Gold Mines Ltd. ASM.

At present, AEM and KGC sport a Zacks Rank #1 (Strong Buy) each, while ASM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for AEM’s 2025 earnings is pegged at $7.85 per share, indicating a rise of 85.6%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 11.63%. AEM’s shares have gained 133.8% over the past year.

The Zacks Consensus Estimate for KGC’s 2025 earnings is pinned at $1.68 per share, indicating a 147.1% year-over-year increase. Its shares have surged 225.4% over the past year.

The Zacks Consensus Estimate for ASM’s 2025 fiscal-year earnings is pinned at 17 cents per share, indicating a 13.3% year-over-year increase. ASM’s shares have gained 491.2% over the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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