Diversified Management Inc. Acquires New Holdings in Valvoline $VVV

Key Points

• Diversified Management Inc. acquired 77,329 Valvoline shares in the third quarter, worth approximately $2.33 million and representing about 0.06% of the company. Institutional investors collectively own 96.13% of Valvoline.
• Valvoline exceeded quarterly earnings expectations, reporting $0.57 in EPS versus the $0.50 consensus estimate, while revenue rose 24.1% year over year to $544.6 million. The company issued fiscal 2026 EPS guidance of $1.70–$1.75.
• The board authorized a $175 million share buyback, allowing repurchases of up to 4.8% of outstanding shares. Analysts maintain a “Moderate Buy” consensus rating with a $42 average price target, although some firms recently lowered their targets.

Diversified Management Inc. bought a new stake in shares of Valvoline (NYSE:VVV - Free Report) in the third quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor bought 77,329 shares of the basic materials company's stock, valued at approximately $2,331,000. Diversified Management Inc. owned about 0.06% of Valvoline as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds have also recently modified their holdings of VVV. Measured Wealth Private Client Group LLC bought a new position in Valvoline during the first quarter valued at $28,000. Integrated Wealth Concepts LLC bought a new stake in shares of Valvoline in the 2nd quarter worth about $35,000. Elevation Wealth Partners LLC bought a new stake in shares of Valvoline in the 3rd quarter worth about $34,000. Cedar Mountain Advisors LLC purchased a new stake in shares of Valvoline during the 1st quarter valued at about $42,000. Finally, Bullseye Investment Management LLC purchased a new stake in shares of Valvoline during the 2nd quarter valued at about $54,000. 96.13% of the stock is owned by hedge funds and other institutional investors.

Valvoline Price Performance

VVV stock opened at $30.85 on Friday. The stock has a market cap of $3.94 billion, a PE ratio of 38.56 and a beta of 1.03. Valvoline has a 12 month low of $26.21 and a 12 month high of $41.08. The company has a 50-day moving average price of $31.83 and a 200 day moving average price of $34.40. The company has a current ratio of 0.70, a quick ratio of 0.58 and a debt-to-equity ratio of 3.77.

Valvoline (NYSE:VVV - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The basic materials company reported $0.57 earnings per share for the quarter, topping analysts' consensus estimates of $0.50 by $0.07. Valvoline had a net margin of 5.17% and a return on equity of 65.12%. The company had revenue of $544.60 million for the quarter, compared to analyst estimates of $543.21 million. During the same period in the prior year, the company posted $0.47 EPS. The firm's revenue for the quarter was up 24.1% on a year-over-year basis. Valvoline has set its FY 2026 guidance at 1.700-1.750 EPS. Equities research analysts anticipate that Valvoline will post 1.76 earnings per share for the current year.

Valvoline announced that its Board of Directors has initiated a share buyback plan on Tuesday, September 29th that authorizes the company to buyback $175.00 million in shares. This buyback authorization authorizes the basic materials company to purchase up to 4.8% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's management believes its shares are undervalued.

Wall Street Analyst Weigh In

Several research analysts recently commented on the company. Stephens lifted their price target on Valvoline from $44.00 to $48.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 28th. Weiss Ratings upgraded Valvoline from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, August 6th. New Street Research set a $34.00 price objective on Valvoline in a research note on Thursday, October 1st. Citigroup lowered their price objective on Valvoline from $41.00 to $34.00 and set a "neutral" rating for the company in a research note on Thursday, October 1st. Finally, TD Cowen reiterated a "buy" rating on shares of Valvoline in a report on Wednesday, August 19th. Thirteen research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $42.00.

Insider Buying and Selling

In related news, insider Julie O'Daniel sold 3,700 shares of the firm's stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $33.81, for a total transaction of $125,097.00. Following the completion of the sale, the insider directly owned 14,279 shares of the company's stock, valued at approximately $482,772.99. This trade represents a 20.58% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Jordan Denny acquired 1,506 shares of the company's stock in a transaction that occurred on Wednesday, August 12th. The shares were acquired at an average price of $33.20 per share, with a total value of $49,999.20. Following the acquisition, the chief accounting officer owned 4,121 shares in the company, valued at $136,817.20. This trade represents a 57.59% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.66% of the stock is currently owned by company insiders.

About Valvoline

Valvoline Inc NYSE: VVV is an automotive services company that operates and franchises quick-lube service centers. Its locations provide routine vehicle maintenance, including oil changes, fluid services, filter replacement, battery replacement, windshield wiper replacement and tire services. The company's service model is designed to allow customers to receive maintenance without a scheduled appointment or leaving their vehicle.

Valvoline serves customers primarily in the United States and Canada through company-operated and franchised service centers under the Valvoline Instant Oil Change and related brands.

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