Stepan (NYSE:SCL) Stock Rating Lowered by Zacks Research

Stepan (NYSE:SCL) was downgraded by stock analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a report released on Wednesday, Zacks reports.

Other analysts have also recently issued reports about the stock. Seaport Research Partners reaffirmed a “buy” rating and issued a $85.00 target price on shares of Stepan in a research note on Friday, August 7th. Wall Street Zen upgraded Stepan from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. Finally, Weiss Ratings reissued a “sell (d+)” rating on shares of Stepan in a research note on Tuesday. One equities research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Reduce”.

Stepan Price Performance

Stepan stock opened at $69.83 on Wednesday. Stepan has a 12-month low of $41.82 and a 12-month high of $70.00. The stock has a market capitalization of $1.59 billion, a P/E ratio of 367.51 and a beta of 0.94. The firm’s 50-day moving average is $62.88 and its two-hundred day moving average is $56.79. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.32 and a quick ratio of 0.77.

Stepan (NYSE:SCL) last issued its quarterly earnings results on Wednesday, October 28th. The basic materials company reported $0.94 EPS for the quarter, topping analysts’ consensus estimates of $0.73 by $0.21. The business had revenue of $692.15 million during the quarter, compared to the consensus estimate of $634.30 million. Stepan had a net margin of 0.17% and a return on equity of 4.81%. The company’s quarterly revenue was up 17.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.48 earnings per share. Equities analysts predict that Stepan will post 2.69 earnings per share for the current year.

Institutional Trading of Stepan

A number of institutional investors have recently modified their holdings of SCL. ProShare Advisors LLC boosted its holdings in Stepan by 31.8% in the 3rd quarter. ProShare Advisors LLC now owns 171,117 shares of the basic materials company’s stock worth $10,674,000 after acquiring an additional 41,244 shares during the period. Vise Technologies Inc. bought a new stake in shares of Stepan in the 3rd quarter worth about $405,000. Pullen Investment Management LLC increased its holdings in Stepan by 0.7% in the third quarter. Pullen Investment Management LLC now owns 41,270 shares of the basic materials company’s stock valued at $2,574,000 after buying an additional 275 shares during the last quarter. Evergreen Capital Management LLC acquired a new stake in shares of Stepan during the 3rd quarter valued at approximately $222,000. Finally, Inspire Investing LLC raised its holdings in shares of Stepan by 307.1% during the third quarter. Inspire Investing LLC now owns 49,768 shares of the basic materials company’s stock worth $3,105,000 after purchasing an additional 37,542 shares during the period. Hedge funds and other institutional investors own 82.70% of the company’s stock.

Trending Headlines about Stepan

Here are the key news stories impacting Stepan this week:

• Positive Sentiment: Third-quarter results exceeded expectations. Stepan reported adjusted EPS of $0.94, above the $0.73 consensus estimate, while revenue rose 17.3% year over year to approximately $692.2 million, surpassing estimates of $634.3 million. GAAP net income increased 64% to $17.8 million, or $0.78 per diluted share. Stepan beats third-quarter earnings and revenue estimates
• Positive Sentiment: Growth was broad-based across the business. Surfactants sales increased 15% to $486.6 million, Polymers sales rose 24% to $178.7 million, and Specialty Products sales climbed 12% to $26.9 million. Operating income grew 19% to $26.0 million, indicating improved demand and operating execution. Stepan third-quarter sales and income report
• Positive Sentiment: The dividend was raised for the 59th consecutive year. Stepan declared a quarterly dividend of $0.405 per share, up 2.5% from $0.395, representing an annualized payout of $1.62 and a yield of approximately 2.3%. The increase supports the company’s appeal to income-focused investors. Stepan increases quarterly cash dividend
• Neutral Sentiment: Restructuring remains a consideration. Stepan recorded a $5.6 million pretax charge tied to Project Catalyst. However, the company also sold land for $28.5 million and plans to use the proceeds to reduce debt, which could improve financial flexibility.

Stepan Company Profile

Stepan Company (NYSE:SCL) is a global manufacturer of specialty and intermediate chemicals. Founded in 1932 and headquartered in Northfield, Illinois, the company develops products used by manufacturers in consumer and industrial markets.

Stepan’s principal products include surfactants, which are used in detergents, cleaners, personal-care products, agricultural formulations and other applications. The company also produces polyurethane polyols, phthalic anhydride and other specialty chemicals used in insulation, construction materials, coatings, plastics, food packaging and related industrial products.

Stepan serves customers across North America, Latin America, Europe and Asia through a network of manufacturing facilities, research and development operations, and sales organizations.