Valvoline (NYSE:VVV) Stock Now Rated "Moderate Buy" by Wall Street Brokerages

Key Points

• Analysts rate Valvoline “Moderate Buy”: 13 of 18 analysts recommend buying the stock, while five rate it hold; the average 12-month price target is $41.17.
• Recent analyst targets vary: TD Cowen cut its target from $45 to $40 but maintained a buy rating, while Benchmark initiated coverage with a buy rating and a $48 target.
• Valvoline authorized a $175 million share repurchase program, permitting buybacks of up to 4.8% of outstanding shares. Separately, insider Julie O’Daniel sold 3,700 shares.

Valvoline (NYSE:VVV - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the eighteen analysts that are covering the stock, Marketbeat Ratings reports. Five investment analysts have rated the stock with a hold recommendation and thirteen have assigned a buy recommendation to the company. The average 12 month price objective among brokers that have updated their coverage on the stock in the last year is $41.17.

Several equities research analysts have weighed in on VVV shares. Piper Sandler restated an "overweight" rating on shares of Valvoline in a report on Thursday. TD Cowen reduced their target price on shares of Valvoline from $45.00 to $40.00 and set a "buy" rating on the stock in a report on Wednesday, October 14th. New Street Research set a $34.00 price target on shares of Valvoline in a research note on Thursday, October 1st. UBS Group set a $40.00 price target on shares of Valvoline in a report on Wednesday, October 14th. Finally, Benchmark started coverage on shares of Valvoline in a research note on Wednesday, August 19th. They set a "buy" rating and a $48.00 target price for the company.

Insiders Place Their Bets

In other news, insider Julie O'Daniel sold 3,700 shares of the business's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $33.81, for a total transaction of $125,097.00. Following the completion of the sale, the insider owned 14,279 shares in the company, valued at approximately $482,772.99. The trade was a 20.58% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.66% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in VVV. Caxton Associates LLP raised its position in Valvoline by 191.6% in the 3rd quarter. Caxton Associates LLP now owns 19,225 shares of the basic materials company's stock valued at $579,000 after purchasing an additional 12,632 shares during the last quarter. AlphaGrep UK Ltd purchased a new stake in shares of Valvoline in the third quarter valued at about $472,000. Benjamin Edwards Inc. boosted its stake in shares of Valvoline by 6.2% during the third quarter. Benjamin Edwards Inc. now owns 14,384 shares of the basic materials company's stock worth $434,000 after buying an additional 840 shares during the period. First Trust Advisors LP boosted its stake in shares of Valvoline by 27.2% during the third quarter. First Trust Advisors LP now owns 230,543 shares of the basic materials company's stock worth $6,949,000 after buying an additional 49,360 shares during the period. Finally, GW&K Investment Management LLC boosted its stake in shares of Valvoline by 2.0% during the third quarter. GW&K Investment Management LLC now owns 607,877 shares of the basic materials company's stock worth $18,321,000 after buying an additional 12,141 shares during the period. Hedge funds and other institutional investors own 96.13% of the company's stock.

Valvoline Price Performance

VVV opened at $34.60 on Friday. The firm has a market cap of $4.41 billion, a price-to-earnings ratio of 43.25 and a beta of 1.01. Valvoline has a 12-month low of $26.21 and a 12-month high of $41.08. The company has a current ratio of 0.70, a quick ratio of 0.58 and a debt-to-equity ratio of 3.77. The stock's 50-day moving average price is $31.22 and its 200 day moving average price is $34.48.

Valvoline announced that its Board of Directors has authorized a stock repurchase program on Tuesday, September 29th that allows the company to buy back $175 million in outstanding shares. This buyback authorization allows the basic materials company to purchase up to 4.8% of its stock through open market purchases. Share buyback programs are generally a sign that the company's board believes its stock is undervalued.

About Valvoline

Valvoline Inc. is an automotive services company focused on preventive vehicle maintenance. It operates and franchises service centers under brands including Valvoline Instant Oil Change and Great Canadian Oil Change, primarily in the United States and Canada. Its services include oil changes and other routine maintenance, such as tire rotations, battery replacement, fluid exchanges, air-conditioning service and replacement of wiper blades and filters. The company serves both individual motorists and commercial customers through its service-center network.

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