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

Stepan Company (NYSE:SCL) shares gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. 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.

The basic materials company reported $1.18 earnings per share (EPS) for the quarter, topping the consensus estimate 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 positive return on equity of 2.65% and a negative net margin of 0.61%.Stepan’s quarterly revenue was up 15.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.52 EPS.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on SCL shares. Weiss Ratings lowered Stepan from a “sell (d+)” rating to a “sell (d)” rating in a research report 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 analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Reduce”.

Institutional Trading of Stepan

A number of large investors have recently added to or reduced their stakes in SCL. SG Americas Securities LLC raised its position in shares of Stepan by 166.8% during the 4th quarter. SG Americas Securities LLC now owns 46,410 shares of the basic materials company’s stock valued at $2,198,000 after buying an additional 29,017 shares in the last quarter. Deprince Race & Zollo Inc. increased its position in shares of Stepan by 5.2% during the 1st quarter. Deprince Race & Zollo Inc. now owns 947,452 shares of the basic materials company’s stock valued at $47,354,000 after purchasing an additional 47,075 shares during the last quarter. Horizon Investments LLC bought a new position in shares of Stepan during the 4th quarter valued at approximately $623,000. Grace & White Inc. NY raised its holdings in Stepan by 7.7% during the 1st quarter. Grace & White Inc. NY now owns 139,013 shares of the basic materials company’s stock valued at $6,948,000 after buying an additional 9,900 shares during the period. Finally, North Star Investment Management Corp. purchased a new stake in shares of Stepan in the first quarter valued at $850,000. Institutional investors own 82.70% of the company’s stock.

Stepan Price Performance

The company has a market capitalization of $1.41 billion, a P/E ratio of -100.00 and a beta of 0.95. The firm’s fifty day moving average is $54.85 and its 200 day moving average is $53.62. The company has a debt-to-equity ratio of 0.28, a quick ratio of 0.86 and a current ratio of 1.26.

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.