Stepan (NYSE:SCL) Shares Gap Down – Time to Sell?

Stepan Company (NYSE:SCL)’s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $52.66, but opened at $49.14. Stepan shares last traded at $49.36, with a volume of 4,524 shares traded.

Analyst Ratings Changes

A number of analysts recently issued reports on SCL shares. Weiss Ratings lowered shares of Stepan from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Wednesday, March 4th. Zacks Research lowered shares of Stepan from a “hold” rating to a “strong sell” rating in a research note on Wednesday, March 4th. Two analysts have rated the stock with a Sell rating, Based on data from MarketBeat.com, the stock presently has a consensus rating of “Sell”.

Stepan Trading Up 1.7%

The stock has a market cap of $1.13 billion, a price-to-earnings ratio of -80.27 and a beta of 1.01. The business’s fifty day simple moving average is $50.02 and its 200 day simple moving average is $49.92. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.26 and a quick ratio of 0.84.

Stepan (NYSE:SCL) last released its quarterly earnings data on Tuesday, April 28th. The basic materials company reported $0.45 EPS for the quarter, topping analysts’ consensus estimates of $0.39 by $0.06. The firm had revenue of $604.51 million during the quarter, compared to the consensus estimate of $612.25 million. Stepan had a negative net margin of 0.61% and a positive return on equity of 2.65%. The firm’s revenue was up 1.9% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.84 earnings per share. On average, research analysts predict that Stepan Company will post 2.43 EPS for the current year.

Stepan Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Monday, June 1st will be issued a $0.395 dividend. This represents a $1.58 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date of this dividend is Monday, June 1st. Stepan’s payout ratio is currently -254.84%.

Hedge Funds Weigh In On Stepan

Hedge funds have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC boosted its holdings in Stepan by 206.5% in the second quarter. EverSource Wealth Advisors LLC now owns 521 shares of the basic materials company’s stock worth $28,000 after purchasing an additional 351 shares during the period. 1620 Investment Advisors Inc. boosted its holdings in Stepan by 86.9% in the fourth quarter. 1620 Investment Advisors Inc. now owns 570 shares of the basic materials company’s stock worth $27,000 after purchasing an additional 265 shares during the period. Financial Consulate Inc. acquired a new position in Stepan in the third quarter worth $30,000. Parallel Advisors LLC boosted its holdings in Stepan by 700.0% in the fourth quarter. Parallel Advisors LLC now owns 688 shares of the basic materials company’s stock worth $33,000 after purchasing an additional 602 shares during the period. Finally, Quarry LP acquired a new position in shares of Stepan during the third quarter valued at $34,000. Institutional investors and hedge funds own 82.70% of the company’s stock.

About Stepan

Stepan Company is a global manufacturer of specialty and intermediate chemicals, primarily known for its development and production of surfactants and related specialty products. The company’s portfolio includes a wide range of ingredients used to enhance the performance of consumer and industrial formulations, such as emulsifiers, foam control agents, odor control agents, antimicrobial products and performance additives. These products are integral components in cleaning solutions, personal care items, agrochemical formulations, coatings, oilfield treatments and polymer systems.

Serving a diverse set of end-markets, Stepan’s offerings address both consumer-facing and industrial applications.