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

Stepan Company (NYSE:SCL) shares gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $58.01, but opened at $62.71. Stepan shares last traded at $61.8130, with a volume of 23,201 shares traded.

The basic materials company reported $1.18 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.61 by $0.57. The firm had revenue of $684.11 million during the quarter, compared to analyst estimates of $635.85 million. Stepan had a negative net margin of 0.61% and a positive return on equity of 2.65%. The business’s revenue was up 15.0% on a year-over-year basis. During the same period in the previous year, the firm earned $0.52 earnings per share.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the company. Weiss Ratings cut Stepan from a “sell (d+)” rating to a “sell (d)” rating in a research note on Monday, May 11th. Zacks Research raised shares of Stepan from a “strong sell” rating to a “hold” rating in a report on Monday, July 6th. One research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Reduce”.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in SCL. 1620 Investment Advisors Inc. lifted its stake in shares of Stepan by 86.9% during the fourth quarter. 1620 Investment Advisors Inc. now owns 570 shares of the basic materials company’s stock worth $27,000 after buying an additional 265 shares during the period. EverSource Wealth Advisors LLC increased its position in shares of Stepan by 206.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 521 shares of the basic materials company’s stock valued at $28,000 after acquiring an additional 351 shares during the period. Inspire Investing LLC increased its position in shares of Stepan by 4.1% in the 1st quarter. Inspire Investing LLC now owns 10,325 shares of the basic materials company’s stock valued at $516,000 after acquiring an additional 402 shares during the period. Daiwa Securities Group Inc. raised its stake in Stepan by 6.6% in the 2nd quarter. Daiwa Securities Group Inc. now owns 8,936 shares of the basic materials company’s stock worth $488,000 after acquiring an additional 553 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Stepan by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 12,701 shares of the basic materials company’s stock worth $699,000 after acquiring an additional 555 shares during the last quarter. Hedge funds and other institutional investors own 82.70% of the company’s stock.

Stepan Trading Up 6.9%

The company has a current ratio of 1.26, a quick ratio of 0.86 and a debt-to-equity ratio of 0.28. The stock has a 50-day simple moving average of $54.85 and a 200 day simple moving average of $53.62. The company has a market cap of $1.41 billion, a price-to-earnings ratio of -100.00 and a beta of 0.95.

Stepan Company Profile

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.