Stepan (NYSE:SCL) Shares Gap Up After Better-Than-Expected Earnings

Stepan (NYSE:SCL)’s share price gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $48.19, but opened at $51.16. Stepan shares last traded at $51.70, with a volume of 16,149 shares.

The basic materials company reported $0.84 EPS for the quarter, beating the consensus estimate of $0.52 by $0.32. Stepan had a net margin of 2.31% and a return on equity of 4.21%. During the same period in the previous year, the firm posted $0.64 earnings per share. The firm’s quarterly revenue was up 7.6% compared to the same quarter last year.

Stepan Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, March 14th. Stockholders of record on Monday, March 3rd were paid a $0.385 dividend. The ex-dividend date was Monday, March 3rd. This represents a $1.54 annualized dividend and a dividend yield of 2.98%. Stepan’s dividend payout ratio is currently 69.68%.

Analysts Set New Price Targets

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

Insiders Place Their Bets

In related news, Director Susan Lewis acquired 500 shares of the firm’s stock in a transaction that occurred on Tuesday, February 25th. The stock was purchased at an average cost of $63.53 per share, with a total value of $31,765.00. Following the transaction, the director now directly owns 1,896 shares of the company’s stock, valued at $120,452.88. This trade represents a 35.82 % increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Company insiders own 6.90% of the company’s stock.

Hedge Funds Weigh In On Stepan

Several large investors have recently made changes to their positions in SCL. Norges Bank purchased a new stake in Stepan during the 4th quarter worth approximately $7,545,000. Deprince Race & Zollo Inc. lifted its stake in Stepan by 20.5% in the 4th quarter. Deprince Race & Zollo Inc. now owns 638,500 shares of the basic materials company’s stock worth $41,311,000 after purchasing an additional 108,556 shares in the last quarter. Southernsun Asset Management LLC grew its position in shares of Stepan by 24.0% in the fourth quarter. Southernsun Asset Management LLC now owns 383,685 shares of the basic materials company’s stock valued at $24,824,000 after purchasing an additional 74,238 shares in the last quarter. Westwood Holdings Group Inc. increased its holdings in shares of Stepan by 7.1% in the fourth quarter. Westwood Holdings Group Inc. now owns 921,704 shares of the basic materials company’s stock valued at $59,634,000 after purchasing an additional 60,985 shares during the last quarter. Finally, American Century Companies Inc. boosted its position in shares of Stepan by 13.9% during the 4th quarter. American Century Companies Inc. now owns 451,123 shares of the basic materials company’s stock valued at $29,188,000 after acquiring an additional 54,943 shares during the last quarter. 82.70% of the stock is currently owned by institutional investors and hedge funds.

Stepan Trading Up 7.3 %

The company’s 50-day moving average is $54.38 and its 200-day moving average is $64.21. The stock has a market capitalization of $1.17 billion, a price-to-earnings ratio of 23.40 and a beta of 0.97. The company has a quick ratio of 0.86, a current ratio of 1.21 and a debt-to-equity ratio of 0.28.

Stepan Company Profile

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.