Stepan (NYSE:SCL) Sees Large Decrease in Short Interest

Stepan (NYSE:SCL) was the target of a large decline in short interest in the month of February. As of February 15th, there was short interest totalling 256,600 shares, a decline of 37.2% from the January 31st total of 408,600 shares. Based on an average trading volume of 123,700 shares, the short-interest ratio is currently 2.1 days. Currently, 1.2% of the company’s shares are short sold.

Wall Street Analyst Weigh In

Separately, StockNews.com downgraded shares of Stepan from a “buy” rating to a “hold” rating in a research note on Thursday, February 20th.

Stepan Stock Down 6.0 %

SCL traded down $3.68 during trading hours on Monday, hitting $58.08. 228,150 shares of the company’s stock were exchanged, compared to its average volume of 128,131. Stepan has a 12-month low of $57.93 and a 12-month high of $94.76. The firm has a 50 day moving average of $63.09 and a 200 day moving average of $70.84. The firm has a market cap of $1.31 billion, a P/E ratio of 26.28 and a beta of 0.84. The company has a current ratio of 1.21, a quick ratio of 0.86 and a debt-to-equity ratio of 0.28.

Stepan (NYSE:SCL) last announced its earnings results on Wednesday, February 19th. The basic materials company reported $0.12 earnings per share for the quarter, missing the consensus estimate of $0.45 by ($0.33). Stepan had a return on equity of 4.21% and a net margin of 2.31%. The business had revenue of $525.60 million for the quarter, compared to analysts’ expectations of $520.97 million. During the same period in the previous year, the company earned $0.33 earnings per share. Stepan’s quarterly revenue was down 1.2% on a year-over-year basis. Analysts predict that Stepan will post 3.55 EPS for the current fiscal year.

Stepan Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 14th. Shareholders of record on Monday, March 3rd will be given a $0.385 dividend. This represents a $1.54 dividend on an annualized basis and a dividend yield of 2.65%. The ex-dividend date is Monday, March 3rd. Stepan’s dividend payout ratio is presently 69.68%.

Insider Activity

In other Stepan news, Director Susan Lewis bought 500 shares of the business’s stock in a transaction that occurred on Tuesday, February 25th. The shares were purchased at an average cost of $63.53 per share, with a total value of $31,765.00. Following the purchase, the director now directly owns 1,896 shares in the company, valued at approximately $120,452.88. This represents a 35.82 % increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 6.90% of the company’s stock.

Institutional Investors Weigh In On Stepan

A number of large investors have recently modified their holdings of SCL. Versant Capital Management Inc increased its position in shares of Stepan by 110.6% in the 4th quarter. Versant Capital Management Inc now owns 457 shares of the basic materials company’s stock valued at $30,000 after purchasing an additional 240 shares during the last quarter. Sterling Capital Management LLC increased its position in shares of Stepan by 781.4% in the 4th quarter. Sterling Capital Management LLC now owns 617 shares of the basic materials company’s stock valued at $40,000 after purchasing an additional 547 shares during the last quarter. KBC Group NV increased its position in shares of Stepan by 43.9% in the 3rd quarter. KBC Group NV now owns 934 shares of the basic materials company’s stock valued at $72,000 after purchasing an additional 285 shares during the last quarter. Point72 Asia Singapore Pte. Ltd. purchased a new stake in shares of Stepan in the 3rd quarter valued at approximately $161,000. Finally, Point72 DIFC Ltd purchased a new stake in shares of Stepan in the 3rd quarter valued at approximately $168,000. 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.