Stepan (NYSE:SCL) Upgraded to “Buy” at StockNews.com

StockNews.com upgraded shares of Stepan (NYSE:SCL) from a hold rating to a buy rating in a research report sent to investors on Friday.

Stepan Stock Performance

NYSE SCL traded up $0.55 on Friday, reaching $72.89. The stock had a trading volume of 155,256 shares, compared to its average volume of 89,245. The firm has a fifty day moving average of $75.08 and a two-hundred day moving average of $80.72. Stepan has a 1-year low of $69.78 and a 1-year high of $96.68. The company has a debt-to-equity ratio of 0.29, a current ratio of 1.27 and a quick ratio of 0.92. The company has a market cap of $1.64 billion, a P/E ratio of 36.25 and a beta of 0.81.

Stepan (NYSE:SCL) last issued its earnings results on Wednesday, October 30th. The basic materials company reported $1.03 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.64 by $0.39. The business had revenue of $546.84 million during the quarter, compared to analysts’ expectations of $577.23 million. Stepan had a return on equity of 4.56% and a net margin of 2.10%. The business’s revenue for the quarter was down 2.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.64 EPS. On average, equities research analysts anticipate that Stepan will post 2.09 EPS for the current year.

Stepan Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, December 13th. Stockholders of record on Friday, November 29th will be given a dividend of $0.385 per share. The ex-dividend date of this dividend is Friday, November 29th. This is a boost from Stepan’s previous quarterly dividend of $0.38. This represents a $1.54 annualized dividend and a dividend yield of 2.11%. Stepan’s dividend payout ratio is currently 74.63%.

Insider Activity

In other Stepan news, VP David Kabbes acquired 1,056 shares of the company’s stock in a transaction that occurred on Wednesday, August 14th. The shares were bought at an average cost of $71.39 per share, with a total value of $75,387.84. Following the completion of the transaction, the vice president now directly owns 1,056 shares of the company’s stock, valued at approximately $75,387.84. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 6.90% of the company’s stock.

Hedge Funds Weigh In On Stepan

Several hedge funds and other institutional investors have recently modified their holdings of SCL. Assenagon Asset Management S.A. increased its position in shares of Stepan by 924.5% during the third quarter. Assenagon Asset Management S.A. now owns 82,901 shares of the basic materials company’s stock worth $6,404,000 after purchasing an additional 74,809 shares in the last quarter. American Century Companies Inc. lifted its stake in Stepan by 51.1% during the second quarter. American Century Companies Inc. now owns 211,302 shares of the basic materials company’s stock worth $17,741,000 after purchasing an additional 71,431 shares during the last quarter. Westwood Holdings Group Inc. grew its stake in Stepan by 7.6% during the 2nd quarter. Westwood Holdings Group Inc. now owns 747,140 shares of the basic materials company’s stock worth $62,730,000 after buying an additional 52,944 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in shares of Stepan by 2.8% in the second quarter. Dimensional Fund Advisors LP now owns 1,279,450 shares of the basic materials company’s stock valued at $107,421,000 after buying an additional 34,264 shares during the last quarter. Finally, Edgestream Partners L.P. acquired a new stake in Stepan during the 2nd quarter worth approximately $2,013,000. 82.70% of the stock is owned by hedge funds and other institutional investors.

About Stepan

Stepan Company, together with its subsidiaries, produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products worldwide. It operates through three segments: Surfactants, Polymers, and Specialty Products. The Surfactants segment offers surfactants that are used in consumer and industrial cleaning and disinfection products, including detergents for washing clothes, dishes, carpets, and floors and walls, as well as shampoos and body washes; and other applications, such as fabric softeners, germicidal quaternary compounds, disinfectants, and lubricating ingredients.