Stepan (NYSE:SCL) Stock Rating Upgraded by Zacks Research

Key Points

• Zacks Research upgraded Stepan from “hold” to “strong buy,” while the stock’s broader analyst consensus remains “Moderate Buy.” Seaport Research Partners also maintained a buy rating with an $85 price target.
• Stepan reported quarterly EPS of $1.18, beating the $0.61 consensus estimate, while revenue reached $684.11 million and rose 15% year over year.
• Institutional investors own 82.7% of Stepan’s shares, with several funds recently establishing or increasing positions in the specialty chemicals manufacturer.

Stepan (NYSE:SCL - Get Free Report) was upgraded by equities researchers at Zacks Research from a "hold" rating to a "strong-buy" rating in a note issued to investors on Tuesday, Zacks reports.

Several other research analysts have also issued reports on SCL. Wall Street Zen upgraded Stepan from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. Seaport Research Partners reiterated a "buy" rating and issued a $85.00 price objective on shares of Stepan in a report on Friday, August 7th. Finally, Weiss Ratings raised Stepan from a "sell (d)" rating to a "sell (d+)" rating in a research note on Wednesday, July 29th. One analyst has rated the stock with a Strong Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy".

Stepan Trading Up 0.0%

SCL opened at $62.21 on Tuesday. The firm has a 50 day simple moving average of $62.87 and a 200 day simple moving average of $56.04. Stepan has a fifty-two week low of $41.82 and a fifty-two week high of $68.00. The company has a market cap of $1.41 billion, a price-to-earnings ratio of -518.41 and a beta of 0.94. The company has a debt-to-equity ratio of 0.20, a current ratio of 1.15 and a quick ratio of 0.77.

Stepan (NYSE:SCL - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. 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 for the quarter, compared to analysts' expectations of $635.85 million. Stepan had a negative net margin of 0.11% and a positive return on equity of 3.90%. The business's revenue for the quarter was up 15.0% on a year-over-year basis. During the same period last year, the firm earned $0.52 earnings per share. On average, sell-side analysts anticipate that Stepan will post 2.69 earnings per share for the current year.

Hedge Funds Weigh In On Stepan

Several institutional investors and hedge funds have recently made changes to their positions in SCL. PDT Partners LLC acquired a new stake in Stepan during the 2nd quarter worth $2,682,000. Empowered Funds LLC acquired a new position in Stepan in the second quarter valued at about $4,952,000. Deutsche Bank AG acquired a new position in Stepan in the second quarter valued at about $1,302,000. Deprince Race & Zollo Inc. grew its stake in Stepan by 5.2% in the first quarter. Deprince Race & Zollo Inc. now owns 947,452 shares of the basic materials company's stock valued at $47,354,000 after acquiring an additional 47,075 shares during the period. Finally, Core Capital Management & Research inc. bought a new stake in shares of Stepan in the second quarter worth about $2,670,000. 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. Founded in 1932 and headquartered in Northbrook, Illinois, the company develops, manufactures and sells chemical products used by businesses in a range of consumer and industrial markets.

Its principal products include surfactants, which are used in detergents, cleaners, personal care products, agricultural formulations and food applications. Stepan also produces polyurethane polyols, specialty polymers and other chemical intermediates used in insulation, construction materials, automotive products, coatings, adhesives and other industrial applications.

Stepan serves customers across North America, Latin America, Europe and Asia through a network of manufacturing and research facilities.

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