Valvoline (NYSE:VVV) to Buyback $175.00 million in Shares

Valvoline (NYSE:VVV) declared that its board has approved a share repurchase plan on Tuesday, September 29th, RTT News reports. The company plans to buyback $175.00 million in shares. This buyback authorization permits the basic materials company to purchase up to 4.8% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board believes its shares are undervalued.

Valvoline Stock Up 4.1%

NYSE VVV traded up $1.18 on Tuesday, hitting $29.66. The stock had a trading volume of 3,406,596 shares, compared to its average volume of 2,618,238. The business’s fifty day moving average price is $33.02 and its 200 day moving average price is $34.54. Valvoline has a 52-week low of $26.21 and a 52-week high of $41.08. The stock has a market cap of $3.78 billion, a price-to-earnings ratio of 37.07 and a beta of 0.99. The company has a debt-to-equity ratio of 3.77, a current ratio of 0.70 and a quick ratio of 0.58.

Valvoline (NYSE:VVV) last posted its quarterly earnings results on Wednesday, August 5th. The basic materials company reported $0.57 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.50 by $0.07. Valvoline had a net margin of 5.17% and a return on equity of 65.12%. The business had revenue of $544.60 million during the quarter, compared to analysts’ expectations of $543.21 million. During the same quarter last year, the company posted $0.47 earnings per share. The business’s quarterly revenue was up 24.1% on a year-over-year basis. Valvoline has set its FY 2026 guidance at 1.700-1.750 EPS. Equities research analysts anticipate that Valvoline will post 1.76 earnings per share for the current year.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on VVV. New Street Research set a $47.00 price target on shares of Valvoline in a research report on Monday, July 20th. Barclays increased their price target on Valvoline from $35.00 to $41.00 and gave the company an “equal weight” rating in a report on Tuesday, July 21st. TD Cowen reiterated a “buy” rating on shares of Valvoline in a research report on Wednesday, August 19th. Benchmark started coverage on shares of Valvoline in a report on Wednesday, August 19th. They issued a “buy” rating and a $48.00 target price for the company. Finally, Citigroup reaffirmed a “neutral” rating on shares of Valvoline in a research report on Thursday, July 16th. Twelve analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $43.06.

Insider Activity

In related news, insider Julie O’Daniel sold 3,700 shares of Valvoline stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $33.81, for a total transaction of $125,097.00. Following the completion of the sale, the insider owned 14,279 shares of the company’s stock, valued at $482,772.99. The trade was a 20.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Jordan Denny bought 1,506 shares of the company’s stock in a transaction that occurred on Wednesday, August 12th. The stock was purchased at an average price of $33.20 per share, for a total transaction of $49,999.20. Following the transaction, the chief accounting officer owned 4,121 shares of the company’s stock, valued at $136,817.20. The trade was a 57.59% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 0.66% of the company’s stock.

About Valvoline

Valvoline Inc (NYSE: VVV) is an automotive maintenance company focused on quick, convenient vehicle services. Through its company-operated and franchised service centers, the company provides oil changes and other routine maintenance designed to help extend vehicle performance and reliability.

Its services generally include conventional and synthetic oil changes, tire rotations, battery replacement, air-filter and wiper-blade replacement, fluid services, and other preventive maintenance.