Primecap Management Co. CA Acquires New Shares in Valvoline (NYSE:VVV)

Key Points

• Primecap Management Co. CA has acquired 27,130 shares of Valvoline (NYSE:VVV), valued at approximately $944,000, highlighting increasing institutional interest in the stock.
• The stock has seen mixed analyst ratings, with five ratings as "hold", nine as "buy", and one as "strong buy", reflecting a consensus price target of $42.31.
• Valvoline reported a Q2 earnings per share (EPS) of $0.47, beating estimates, with a revenue increase of 4.2% compared to the same quarter last year.

Primecap Management Co. CA bought a new position in shares of Valvoline (NYSE:VVV - Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 27,130 shares of the basic materials company's stock, valued at approximately $944,000.

A number of other hedge funds and other institutional investors have also bought and sold shares of the company. Geneva Capital Management LLC boosted its stake in shares of Valvoline by 2.6% in the 1st quarter. Geneva Capital Management LLC now owns 1,252,659 shares of the basic materials company's stock valued at $43,605,000 after purchasing an additional 32,206 shares in the last quarter. PNC Financial Services Group Inc. boosted its position in Valvoline by 30.2% during the 1st quarter. PNC Financial Services Group Inc. now owns 28,101 shares of the basic materials company's stock valued at $978,000 after buying an additional 6,515 shares during the period. Alberta Investment Management Corp purchased a new stake in Valvoline during the 1st quarter valued at $576,000. Nicolet Advisory Services LLC boosted its position in Valvoline by 24.1% during the 1st quarter. Nicolet Advisory Services LLC now owns 7,640 shares of the basic materials company's stock valued at $250,000 after buying an additional 1,483 shares during the period. Finally, XTX Topco Ltd purchased a new stake in Valvoline during the 1st quarter valued at $841,000. Institutional investors own 96.13% of the company's stock.

Valvoline Stock Performance

Shares of Valvoline stock traded down $0.34 during trading hours on Friday, hitting $38.40. 2,132,672 shares of the company were exchanged, compared to its average volume of 1,972,039. The business has a 50-day moving average of $37.03 and a 200-day moving average of $36.00. The stock has a market capitalization of $4.88 billion, a price-to-earnings ratio of 17.86 and a beta of 1.17. The company has a current ratio of 0.73, a quick ratio of 0.60 and a debt-to-equity ratio of 3.37. Valvoline has a 1 year low of $31.01 and a 1 year high of $43.74.

Valvoline (NYSE:VVV - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The basic materials company reported $0.47 EPS for the quarter, beating analysts' consensus estimates of $0.46 by $0.01. The business had revenue of $439.00 million for the quarter, compared to analyst estimates of $436.35 million. Valvoline had a return on equity of 84.85% and a net margin of 16.43%. The business's revenue for the quarter was up 4.2% compared to the same quarter last year. During the same quarter last year, the company earned $0.45 earnings per share. As a group, analysts expect that Valvoline will post 1.63 EPS for the current fiscal year.

Insider Transactions at Valvoline

In other news, CEO Lori Ann Flees acquired 3,000 shares of the business's stock in a transaction dated Tuesday, May 27th. The shares were bought at an average cost of $33.78 per share, for a total transaction of $101,340.00. Following the acquisition, the chief executive officer directly owned 46,614 shares in the company, valued at $1,574,620.92. This trade represents a 6.88% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.66% of the company's stock.

Analysts Set New Price Targets

Several brokerages have commented on VVV. Citigroup decreased their price objective on shares of Valvoline from $41.00 to $38.00 and set a "neutral" rating for the company in a report on Tuesday, April 29th. Wells Fargo & Company lifted their price target on shares of Valvoline from $42.00 to $44.00 and gave the company an "overweight" rating in a research report on Thursday. Stephens lifted their price target on shares of Valvoline from $40.00 to $44.00 and gave the company an "overweight" rating in a research report on Tuesday, July 29th. Piper Sandler reissued an "overweight" rating and set a $44.00 price target (down from $45.00) on shares of Valvoline in a research report on Friday, May 9th. Finally, Morgan Stanley lowered their price target on shares of Valvoline from $41.00 to $39.00 and set an "equal weight" rating for the company in a research report on Friday, May 9th. Five investment analysts have rated the stock with a hold rating, nine have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, Valvoline has a consensus rating of "Moderate Buy" and a consensus price target of $42.31.

Valvoline Company Profile

Valvoline Inc engages in the operation and franchising of vehicle service centers and retail stores in the United States and Canada. The company, through its service centers, provides fluid exchange for motor oil, transmission and differential fluid, and coolant; parts replacement for batteries, filters, wiper blades, and belts; and safety services, such as tire inflation and rotation, bulbs, and safety checks.