Stepan (NYSE:SCL) Shares Gap Up on Earnings Beat

Shares of Stepan (NYSE:SCL) gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $84.53, but opened at $87.16. Stepan shares last traded at $86.70, with a volume of 17,754 shares changing hands.

The basic materials company reported $0.64 earnings per share for the quarter, beating the consensus estimate of $0.35 by $0.29. Stepan had a net margin of 1.71% and a return on equity of 4.04%. The business had revenue of $551.40 million during the quarter, compared to analysts’ expectations of $575.83 million. During the same quarter last year, the company earned $0.71 earnings per share. The firm’s revenue was down 15.4% on a year-over-year basis.

Stepan Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 14th. Shareholders of record on Friday, May 31st will be paid a dividend of $0.375 per share. This represents a $1.50 dividend on an annualized basis and a yield of 1.79%. The ex-dividend date is Friday, May 31st. Stepan’s dividend payout ratio is 90.36%.

Analyst Ratings Changes

Separately, StockNews.com upgraded shares of Stepan from a “sell” rating to a “hold” rating in a research note on Tuesday, March 26th.

Insiders Place Their Bets

In other Stepan news, Director F Quinn Stepan, Jr. sold 5,000 shares of the firm’s stock in a transaction dated Friday, February 23rd. The shares were sold at an average price of $91.07, for a total transaction of $455,350.00. Following the completion of the transaction, the director now owns 255,567 shares in the company, valued at $23,274,486.69. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. In other news, Director F Quinn Stepan, Jr. sold 5,000 shares of Stepan stock in a transaction that occurred on Friday, February 23rd. The shares were sold at an average price of $91.07, for a total value of $455,350.00. Following the completion of the transaction, the director now owns 255,567 shares in the company, valued at $23,274,486.69. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director F Quinn Stepan, Jr. sold 3,637 shares of Stepan stock in a transaction that occurred on Monday, February 26th. The shares were sold at an average price of $90.11, for a total transaction of $327,730.07. Following the completion of the transaction, the director now owns 255,567 shares of the company’s stock, valued at approximately $23,029,142.37. The disclosure for this sale can be found here. Insiders sold a total of 10,637 shares of company stock worth $957,940 over the last quarter. Company insiders own 6.90% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of SCL. Vanguard Group Inc. increased its holdings in shares of Stepan by 0.6% in the fourth quarter. Vanguard Group Inc. now owns 2,562,730 shares of the basic materials company’s stock valued at $242,306,000 after purchasing an additional 14,038 shares in the last quarter. HighTower Advisors LLC increased its holdings in shares of Stepan by 8.1% in the third quarter. HighTower Advisors LLC now owns 2,165,082 shares of the basic materials company’s stock valued at $162,317,000 after purchasing an additional 162,560 shares in the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Stepan by 2.7% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,201,133 shares of the basic materials company’s stock valued at $113,568,000 after purchasing an additional 31,641 shares in the last quarter. Victory Capital Management Inc. increased its holdings in shares of Stepan by 5,436.3% in the fourth quarter. Victory Capital Management Inc. now owns 516,704 shares of the basic materials company’s stock valued at $48,854,000 after purchasing an additional 507,371 shares in the last quarter. Finally, Bank of New York Mellon Corp increased its holdings in shares of Stepan by 0.9% in the third quarter. Bank of New York Mellon Corp now owns 323,931 shares of the basic materials company’s stock valued at $24,285,000 after purchasing an additional 2,742 shares in the last quarter. Institutional investors own 82.70% of the company’s stock.

Stepan Trading Up 1.2 %

The company has a quick ratio of 0.96, a current ratio of 1.38 and a debt-to-equity ratio of 0.33. The firm has a market cap of $1.89 billion, a price-to-earnings ratio of 50.57 and a beta of 0.84. The business’s fifty day moving average is $86.98 and its two-hundred day moving average is $86.14.

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.