BlackRock Inc. Takes Position in Stepan Company $SCL

Key Points

• BlackRock acquired 3.46 million Stepan shares worth approximately $192.7 million, giving it a 15.23% stake in the specialty chemicals company. Institutional investors collectively own 82.7% of Stepan.
• Stepan reported quarterly EPS of $1.18, beating estimates of $0.61, while revenue rose 15% year over year to $684.1 million. Analysts’ average rating remains “Reduce,” despite some recent upgrades.
• The company declared a quarterly dividend of $0.395 per share, equivalent to $1.58 annually and a 2.5% yield based on the reported share price.

BlackRock Inc. acquired a new position in Stepan Company (NYSE:SCL - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 3,458,328 shares of the basic materials company's stock, valued at approximately $192,698,000. BlackRock Inc. owned about 15.23% of Stepan as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. 1620 Investment Advisors Inc. grew its position in Stepan by 86.9% in the fourth quarter. 1620 Investment Advisors Inc. now owns 570 shares of the basic materials company's stock worth $27,000 after acquiring an additional 265 shares in the last quarter. EverSource Wealth Advisors LLC raised its holdings in shares of Stepan by 206.5% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 521 shares of the basic materials company's stock valued at $28,000 after purchasing an additional 351 shares in the last quarter. Parallel Advisors LLC lifted its stake in shares of Stepan by 700.0% in the 4th quarter. Parallel Advisors LLC now owns 688 shares of the basic materials company's stock valued at $33,000 after purchasing an additional 602 shares during the last quarter. Quarry LP acquired a new stake in shares of Stepan in the 3rd quarter valued at $34,000. Finally, Danske Bank A S bought a new stake in Stepan in the third quarter worth $43,000. Institutional investors own 82.70% of the company's stock.

Analyst Ratings Changes

Several equities analysts have commented on the stock. Wall Street Zen raised shares of Stepan from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. Seaport Research Partners reaffirmed a "buy" rating and issued a $85.00 price target on shares of Stepan in a research report on Friday, August 7th. Weiss Ratings upgraded Stepan from a "sell (d)" rating to a "sell (d+)" rating in a research note on Wednesday, July 29th. Finally, Zacks Research raised Stepan from a "strong sell" rating to a "hold" rating in a report on Monday, July 6th. One research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Reduce".

Stepan Stock Up 0.0%

Stepan stock opened at $62.68 on Friday. 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 Company has a fifty-two week low of $41.82 and a fifty-two week high of $68.00. The firm has a fifty day moving average price of $59.87 and a two-hundred day moving average price of $54.99. The firm has a market cap of $1.42 billion, a price-to-earnings ratio of -522.33 and a beta of 0.94.

Stepan (NYSE:SCL - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The basic materials company reported $1.18 EPS for the quarter, topping analysts' consensus estimates of $0.61 by $0.57. Stepan had a positive return on equity of 3.90% and a negative net margin of 0.11%.The business had revenue of $684.11 million for the quarter, compared to analyst estimates of $635.85 million. During the same period in the previous year, the company posted $0.52 earnings per share. The firm's revenue for the quarter was up 15.0% on a year-over-year basis. As a group, analysts forecast that Stepan Company will post 2.69 earnings per share for the current year.

Stepan Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be issued a $0.395 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $1.58 dividend on an annualized basis and a yield of 2.5%. Stepan's dividend payout ratio (DPR) is -1,316.67%.

Stepan Company Profile

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.

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