Stepan (NYSE:SCL) Shares Cross Above 200 Day Moving Average – Here’s Why

Shares of Stepan Company (NYSE:SCL) passed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $55.65 and traded as high as $64.76. Stepan shares last traded at $64.4770, with a volume of 137,272 shares trading hands.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the company. Wall Street Zen raised Stepan from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. Seaport Research Partners reissued a “buy” rating and issued a $85.00 price target on shares of Stepan in a report on Friday, August 7th. Weiss Ratings upgraded Stepan from a “sell (d)” rating to a “sell (d+)” rating in a research report on Wednesday, July 29th. Finally, Zacks Research upgraded Stepan from a “strong sell” rating to a “hold” rating in a research note on Monday, July 6th. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Stepan presently has a consensus rating of “Reduce”.

Stepan Stock Performance

The company has a current ratio of 1.15, a quick ratio of 0.77 and a debt-to-equity ratio of 0.20. The company’s 50-day moving average is $62.60 and its two-hundred day moving average is $55.65. The stock has a market capitalization of $1.47 billion, a P/E ratio of -537.31 and a beta of 0.94.

Stepan (NYSE:SCL) last posted its earnings results on Wednesday, July 29th. The basic materials company reported $1.18 EPS for the quarter, topping the consensus estimate of $0.61 by $0.57. The firm had revenue of $684.11 million during the quarter, compared to analysts’ expectations of $635.85 million. Stepan had a negative net margin of 0.11% and a positive return on equity of 3.90%. Stepan’s quarterly revenue was up 15.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.52 EPS. As a group, sell-side analysts anticipate that Stepan Company will post 2.69 EPS for the current fiscal year.

Stepan Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st were issued a $0.3950 dividend. This represents a $1.58 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend was Tuesday, September 1st. Stepan’s dividend payout ratio is -1,316.67%.

Institutional Trading of Stepan

Hedge funds have recently added to or reduced their stakes in the business. Allworth Financial LP boosted its position in Stepan by 80.2% during the 2nd quarter. Allworth Financial LP now owns 600 shares of the basic materials company’s stock worth $33,000 after acquiring an additional 267 shares during the period. Inspire Investing LLC increased its holdings in shares of Stepan by 4.1% during the first quarter. Inspire Investing LLC now owns 10,325 shares of the basic materials company’s stock valued at $516,000 after purchasing an additional 402 shares during the period. Northwestern Mutual Wealth Management Co. acquired a new position in shares of Stepan during the second quarter valued at $25,000. Illinois Municipal Retirement Fund raised its stake in shares of Stepan by 6.4% during the first quarter. Illinois Municipal Retirement Fund now owns 12,018 shares of the basic materials company’s stock valued at $601,000 after purchasing an additional 724 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of Stepan by 1.7% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 56,447 shares of the basic materials company’s stock valued at $3,145,000 after purchasing an additional 960 shares in the last quarter. Institutional investors own 82.70% of the company’s stock.

About Stepan

Stepan Company is a global manufacturer of specialty and intermediate chemicals. Founded in 1932 and headquartered in Northbrook, Illinois, the company develops, manufactures and sells chemical products used by businesses in a range of consumer and industrial markets.

Its principal products include surfactants, which are used in detergents, cleaners, personal care products, agricultural formulations and food applications. Stepan also produces polyurethane polyols, specialty polymers and other chemical intermediates used in insulation, construction materials, automotive products, coatings, adhesives and other industrial applications.

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