Deutsche Bank AG Makes New Investment in Stepan Company $SCL

Key Points

• Deutsche Bank AG acquired 23,364 Stepan shares worth approximately $1.3 million during the second quarter, while institutional investors collectively owned 82.7% of the company.
• Stepan reported stronger-than-expected quarterly results, with EPS of $1.18 versus the $0.61 consensus estimate and revenue of $684.1 million, up 15% year over year.
• Shares opened at $62.44, while analysts’ overall consensus rating remained “Reduce” despite one brokerage assigning a $85 price target; the company also declared a quarterly dividend of $0.395 per share.

Deutsche Bank AG bought 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 SEC. The fund bought 23,364 shares of the basic materials company's stock, valued at approximately $1,302,000. Deutsche Bank AG owned about 0.10% of Stepan as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also bought and sold shares of the business. Goldman Sachs Group Inc. raised its position in Stepan by 195.5% in the fourth quarter. Goldman Sachs Group Inc. now owns 299,970 shares of the basic materials company's stock worth $14,207,000 after acquiring an additional 198,457 shares during the period. Bank of New York Mellon Corp purchased a new position in Stepan in the second quarter valued at approximately $6,836,000. Towle & Co. purchased a new position in Stepan in the first quarter valued at approximately $5,295,000. Bridgeway Capital Management LLC bought a new position in Stepan during the second quarter valued at $5,573,000. Finally, Sei Investments Co. grew its holdings in Stepan by 465.5% during the first quarter. Sei Investments Co. now owns 123,800 shares of the basic materials company's stock valued at $6,188,000 after purchasing an additional 101,907 shares during the period. Hedge funds and other institutional investors own 82.70% of the company's stock.

Stepan Trading Down 0.6%

Shares of SCL opened at $62.44 on Friday. Stepan Company has a twelve month low of $41.82 and a twelve month high of $68.00. The stock has a market cap of $1.42 billion, a PE ratio of -520.33 and a beta of 0.94. The company has a quick ratio of 0.77, a current ratio of 1.15 and a debt-to-equity ratio of 0.20. The business's 50-day moving average price is $60.04 and its 200-day moving average price is $55.04.

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

Stepan Announces Dividend

The company also recently declared 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. This represents a $1.58 annualized dividend and a yield of 2.5%. The ex-dividend date of this dividend is Tuesday, September 1st. Stepan's dividend payout ratio (DPR) is presently -1,316.67%.

Wall Street Analysts Forecast Growth

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

About Stepan

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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