Cascade investment sells $49.3 million in Ecolab shares

Cascade Investment, L.L.C., the investment vehicle associated with Bill Gates, recently sold a significant portion of its holdings in Ecolab Inc . (NYSE:ECL). The transactions, which took place over two days, involved the sale of common stock valued at approximately $49.3 million.

On November 14, Cascade Investment sold a total of 99,000 shares of Ecolab stock. The shares were sold at prices ranging from $247.50 to $249.94 per share, resulting in a weighted-average price of $249.68 for one of the transactions.

The following day, November 15, the firm continued its sell-off, disposing of 99,000 shares at prices between $244.45 and $246.38, with a weighted-average price of $245.04 for one of the transactions.

After these transactions, Cascade Investment's total holdings in Ecolab decreased to 29,618,741 shares. The sales were executed indirectly through Cascade Investment, L.L.C., as part of its ongoing investment strategy.

In other recent news, Ecolab Inc. has taken significant strides in expanding its portfolio and strengthening its financial performance. The company has acquired Barclay Water Management, a move that brings Barclay's proprietary water safety solutions under Ecolab's umbrella. Josh Magnuson, Ecolab's executive vice president and general manager of Global Light Water, sees this as an opportunity to extend these solutions across North America, enhancing water safety and operational performance for customers.

UBS has recently adjusted its rating for Ecolab from Buy to Neutral, a decision influenced by the company's performance and market position. Despite Ecolab's consistent performance, UBS anticipates a return to normal EPS growth of 12-15%. This assessment aligns with UBS's revised 2025/26 EPS projections for the company, which have been reduced by roughly 4%.

On the earnings front, Ecolab reported a 19% increase in adjusted earnings in the third quarter, along with 4% organic sales growth and a 2% rise in volume growth. This strong performance led to an uplift in full-year earnings guidance. Additionally, the company's key growth areas include clean tech, high tech, and biotech, with a robust innovation pipeline valued at nearly $1.5 billion.

These recent developments underscore Ecolab's strategic focus on growth sectors and operational efficiency. The company's resilience in the face of potential inflationary pressures and supply chain disruptions, along with strategic investments in digital technologies, are expected to drive sustainable growth and profitability in the coming years.

InvestingPro Insights

While Cascade Investment has reduced its stake in Ecolab Inc. (NYSE:ECL), the company continues to demonstrate strong financial performance and market positioning. According to InvestingPro data, Ecolab boasts a substantial market capitalization of $69.61 billion, reflecting its significant presence in the water, hygiene, and infection prevention solutions industry.

Ecolab's commitment to shareholder value is evident in its dividend history. An InvestingPro Tip reveals that the company has raised its dividend for 38 consecutive years, showcasing a strong track record of returning value to investors. This consistency in dividend growth may have been a factor in Cascade Investment's long-term holding of the stock.

Despite the recent sell-off by Cascade Investment, Ecolab's stock performance remains robust. The company has seen a 34.37% price total return over the past year, and it's currently trading at 93.7% of its 52-week high. This strong performance is supported by solid financials, with the company reporting a revenue of $15.67 billion in the last twelve months and an EBITDA growth of 18.23% over the same period.

It's worth noting that Ecolab's P/E ratio stands at 34.25, which some investors might consider high. However, an InvestingPro Tip indicates that the company is trading at a low P/E ratio relative to its near-term earnings growth, suggesting potential undervaluation despite the seemingly high multiple.

For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for Ecolab, providing deeper insights into the company's financial health and market position.

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