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

Stepan (NYSE:SCL) was downgraded by equities researchers at Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued on Wednesday, Zacks reports.

SCL has been the subject of a number of other research reports. Weiss Ratings restated a “sell (d+)” rating on shares of Stepan in a report on Tuesday. Seaport Research Partners reiterated a “buy” rating and set a $85.00 price target on shares of Stepan in a research note on Friday, August 7th. Finally, Wall Street Zen raised shares of Stepan from a “hold” rating to a “buy” rating in a research report on Saturday, August 8th. One research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Reduce”.

Stepan Stock Performance

Shares of SCL opened at $69.83 on Wednesday. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.32 and a quick ratio of 0.77. The stock has a market capitalization of $1.59 billion, a P/E ratio of 367.51 and a beta of 0.94. Stepan has a 12-month low of $41.82 and a 12-month high of $70.00. The firm’s 50 day moving average is $62.88 and its 200-day moving average is $56.79.

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

Hedge Funds Weigh In On Stepan

Large investors have recently bought and sold shares of the stock. 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 valued at $10,674,000 after purchasing an additional 41,244 shares during the period. Vise Technologies Inc. acquired a new stake in Stepan in the 3rd quarter worth $405,000. Pullen Investment Management LLC grew its position in Stepan by 0.7% in the 3rd quarter. Pullen Investment Management LLC now owns 41,270 shares of the basic materials company’s stock worth $2,574,000 after purchasing an additional 275 shares during the last quarter. Evergreen Capital Management LLC bought a new position in shares of Stepan during the 3rd quarter worth about $222,000. Finally, Inspire Investing LLC increased its holdings in shares of Stepan by 307.1% during the 3rd 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. 82.70% of the stock is currently owned by institutional investors and hedge funds.

More Stepan News

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.