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 stronger than expected earnings report. 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.

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

Stepan Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 14th. Investors of record on Friday, May 31st will be given a $0.375 dividend. 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 payout ratio is presently 90.36%.

Wall Street Analyst Weigh In

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

Insider Buying and Selling

In other Stepan news, Director F Quinn Stepan, Jr. sold 2,000 shares of the stock in a transaction on Thursday, March 7th. The shares were sold at an average price of $87.43, for a total transaction of $174,860.00. Following the completion of the sale, the director now owns 250,676 shares of the company’s stock, valued at approximately $21,916,602.68. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. In other news, Director F Quinn Stepan, Jr. sold 5,000 shares of the 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 sale, the director now directly owns 255,567 shares in the company, valued at $23,274,486.69. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director F Quinn Stepan, Jr. sold 2,000 shares of the business’s stock in a transaction dated Thursday, March 7th. The shares were sold at an average price of $87.43, for a total value of $174,860.00. Following the transaction, the director now owns 250,676 shares in the company, valued at approximately $21,916,602.68. The disclosure for this sale can be found here. Insiders have sold a total of 10,637 shares of company stock valued at $957,940 over the last three months. 6.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On Stepan

Several institutional investors and hedge funds have recently bought and sold shares of SCL. Burney Co. raised its holdings in shares of Stepan by 5.0% during the third quarter. Burney Co. now owns 4,802 shares of the basic materials company’s stock valued at $360,000 after acquiring an additional 230 shares in the last quarter. Fifth Third Bancorp increased its position in Stepan by 2,141.7% during the 4th quarter. Fifth Third Bancorp now owns 269 shares of the basic materials company’s stock valued at $25,000 after purchasing an additional 257 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank raised its holdings in Stepan by 6.5% in the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 4,764 shares of the basic materials company’s stock worth $357,000 after purchasing an additional 291 shares in the last quarter. Algert Global LLC lifted its position in shares of Stepan by 0.9% in the 3rd quarter. Algert Global LLC now owns 34,715 shares of the basic materials company’s stock worth $2,603,000 after purchasing an additional 317 shares during the period. Finally, Meiji Yasuda Asset Management Co Ltd. boosted its stake in shares of Stepan by 1.5% during the 3rd quarter. Meiji Yasuda Asset Management Co Ltd. now owns 23,167 shares of the basic materials company’s stock valued at $1,737,000 after purchasing an additional 332 shares in the last quarter. Hedge funds and other institutional investors own 82.70% of the company’s stock.

Stepan Price Performance

The company has a market cap of $1.89 billion, a PE ratio of 50.57 and a beta of 0.84. The firm’s 50-day moving average is $86.98 and its 200-day moving average is $86.14. The company has a quick ratio of 0.96, a current ratio of 1.38 and a debt-to-equity ratio of 0.33.

About Stepan

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.