Here’s Why Axalta Coating Systems Ltd. (AXTA) Traded Down in Q2

Artisan Partners, an investment management company, released its “Artisan Select Equity Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund’s Investor Class ARTNX, Advisor Class APDNX, and Institutional Class APHNX returned 6.77%, 6.76%, and 6.80%, respectively, in the second quarter, compared to a 10.94% return for the S&P 500 Index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2025.

In its second-quarter 2025 investor letter, Artisan Select Equity Fund highlighted stocks such as Axalta Coating Systems Ltd. (NYSE:AXTA). Headquartered in Philadelphia, Pennsylvania, Axalta Coating Systems Ltd. (NYSE:AXTA) manufactures, markets, and distributes coatings systems. On September 26, 2025, Axalta Coating Systems Ltd. (NYSE:AXTA) stock closed at $28.09 per share. One-month return of Axalta Coating Systems Ltd. (NYSE:AXTA) was -10.14%, and its shares lost 22.38% of their value over the last 52 weeks. Axalta Coating Systems Ltd. (NYSE:AXTA) has a market capitalization of $6.084 billion.

Artisan Select Equity Fund stated the following regarding Axalta Coating Systems Ltd. (NYSE:AXTA) in its second quarter 2025 investor letter:

“Axalta Coating Systems Ltd. (NYSE:AXTA) shares declined 10%. Q1 earnings were fine, in our opinion. Sales declined 2% overall. In the performance coatings division, which is Axalta’s best business, sales were impacted by general market weakness. Insurance premiums have gone up significantly over the last few years. So have repair costs. And the car park continues to age. It appears that individuals are pocketing the insurance proceeds when their car is damaged rather than getting an old car repainted. A general lack of consumer confidence doesn’t help either. Industrial sales are also weakish as a result of sluggish industrial activity. This has been a trend for Axalta for a while. The mobility business saw a slight decline in revenue due to declines in original equipment manufacturer (OEM) vehicle production. Notably, however, Axalta grew profits despite the anemic top-line performance. This is a function of variable cost declines and good expense management. Axalta sells for a modest 11X earnings multiple versus the S&P 500® Index at more than 20X, and we added to our position during the quarter.”

Is Axalta Coating Systems Ltd. (AXTA) the Undervalued Chemical Stock to Buy Now?

Axalta Coating Systems Ltd. (NYSE:AXTA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 44 hedge fund portfolios held Axalta Coating Systems Ltd. (NYSE:AXTA) at the end of the second quarter, same as 44 in the previous quarter. In the second quarter, Axalta Coating Systems Ltd.’s (NYSE:AXTA) net sales totaled $1.3 billion, down approximately 3% year-over-year. While we acknowledge the risk and potential of Axalta Coating Systems Ltd. (NYSE:AXTA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Axalta Coating Systems Ltd. (NYSE:AXTA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Axalta Coating Systems Ltd. (NYSE:AXTA) and shared a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.