Deprince Race & Zollo Inc. Acquires 205,157 Shares of Stepan Company $SCL

Key Points

• Deprince Race & Zollo boosted its stake in Stepan by 29.5%, acquiring 205,157 shares to own 900,377 shares (about 3.98% of the company) valued at ~$42.64 million at quarter-end.
• Stepan missed expectations this quarter with EPS of ($0.02) vs. $0.35 expected and revenue of $553.9M vs. $570.6M, producing a low net margin of 2.01% and modest ROE.
• Analysts including Zacks and Weiss have recently downgraded Stepan to a Sell

Deprince Race & Zollo Inc. boosted its holdings in Stepan Company (NYSE:SCL - Free Report) by 29.5% in the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 900,377 shares of the basic materials company's stock after purchasing an additional 205,157 shares during the quarter. Deprince Race & Zollo Inc. owned about 3.98% of Stepan worth $42,642,000 at the end of the most recent quarter.

Other hedge funds have also added to or reduced their stakes in the company. EverSource Wealth Advisors LLC increased its holdings in Stepan by 206.5% in the second quarter. EverSource Wealth Advisors LLC now owns 521 shares of the basic materials company's stock worth $28,000 after purchasing an additional 351 shares in the last quarter. Financial Consulate Inc. bought a new stake in shares of Stepan during the third quarter valued at approximately $30,000. Quarry LP bought a new stake in shares of Stepan during the third quarter valued at approximately $34,000. Danske Bank A S bought a new stake in shares of Stepan during the third quarter valued at approximately $43,000. Finally, Raymond James Financial Inc. bought a new stake in shares of Stepan during the second quarter valued at approximately $100,000. 82.70% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

SCL has been the subject of several recent research reports. Zacks Research downgraded Stepan from a "hold" rating to a "strong sell" rating in a report on Wednesday, March 4th. Weiss Ratings downgraded Stepan from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday, March 4th. Two equities research analysts have rated the stock with a Sell rating, According to data from MarketBeat, the stock presently has an average rating of "Sell".

Stepan Trading Up 0.0%

NYSE SCL opened at $52.45 on Monday. The company has a market cap of $1.19 billion, a price-to-earnings ratio of 25.59 and a beta of 1.01. Stepan Company has a 52 week low of $41.82 and a 52 week high of $68.00. The business has a 50 day moving average price of $53.70 and a 200-day moving average price of $49.64. The company has a quick ratio of 0.84, a current ratio of 1.29 and a debt-to-equity ratio of 0.27.

Stepan (NYSE:SCL - Get Free Report) last released its quarterly earnings data on Monday, February 23rd. The basic materials company reported ($0.02) EPS for the quarter, missing the consensus estimate of $0.35 by ($0.37). The firm had revenue of $553.89 million for the quarter, compared to the consensus estimate of $570.60 million. Stepan had a net margin of 2.01% and a return on equity of 3.38%. The company's revenue was up 5.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.12 EPS. As a group, equities analysts expect that Stepan Company will post 3.55 earnings per share for the current fiscal year.

Stepan Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, March 13th. Investors of record on Monday, March 2nd were given a dividend of $0.395 per share. The ex-dividend date of this dividend was Monday, March 2nd. This represents a $1.58 annualized dividend and a dividend yield of 3.0%. Stepan's payout ratio is presently 77.07%.

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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