Stepan Company $SCL Shares Acquired by Empowered Funds LLC

Key Points

• Empowered Funds LLC more than doubled its Stepan stake in the first quarter, increasing holdings by 124.8% to 174,376 shares valued at approximately $8.7 million. Institutional investors collectively own 82.7% of the company.
• Stepan exceeded quarterly earnings and revenue expectations. The company reported EPS of $1.18 versus the $0.61 consensus estimate, while revenue rose 15% year over year to $684.1 million.
• Stepan declared a quarterly dividend of $0.395 per share, equivalent to an annualized $1.58 payout and a yield of about 2.4%. Despite the strong results, analysts maintain a “Reduce” consensus rating, citing profitability and restructuring concerns.

Empowered Funds LLC lifted its stake in shares of Stepan Company (NYSE:SCL - Free Report) by 124.8% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 174,376 shares of the basic materials company's stock after purchasing an additional 96,823 shares during the period. Empowered Funds LLC owned about 0.77% of Stepan worth $8,715,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also recently modified their holdings of the stock. Quantinno Capital Management LP lifted its stake in Stepan by 55.8% in the 1st quarter. Quantinno Capital Management LP now owns 41,885 shares of the basic materials company's stock valued at $2,093,000 after buying an additional 15,002 shares in the last quarter. Dean Capital Management boosted its holdings in Stepan by 96.4% in the 1st quarter. Dean Capital Management now owns 57,248 shares of the basic materials company's stock worth $2,861,000 after buying an additional 28,104 shares during the last quarter. Entropy Technologies LP increased its stake in Stepan by 79.2% during the 1st quarter. Entropy Technologies LP now owns 10,214 shares of the basic materials company's stock worth $510,000 after buying an additional 4,514 shares in the last quarter. Caxton Associates LLP acquired a new position in shares of Stepan during the first quarter valued at approximately $281,000. Finally, Inceptionr LLC purchased a new position in shares of Stepan in the first quarter valued at approximately $213,000. Institutional investors and hedge funds own 82.70% of the company's stock.

Stepan Stock Performance

SCL opened at $65.08 on Friday. The firm has a market capitalization of $1.48 billion, a PE ratio of -542.38 and a beta of 0.95. Stepan Company has a twelve month low of $41.82 and a twelve month high of $68.00. The firm's 50-day moving average price is $55.43 and its 200 day moving average price is $53.82. The company has a current ratio of 1.15, a quick ratio of 0.86 and a debt-to-equity ratio of 0.20.

Stepan (NYSE:SCL - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The basic materials company reported $1.18 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.61 by $0.57. The company had revenue of $684.11 million during the quarter, compared to analysts' expectations 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 quarter in the prior year, the company earned $0.52 EPS. As a group, sell-side analysts expect that Stepan Company will post 2.54 EPS for the current fiscal year.

Stepan Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be issued a dividend of $0.395 per share. This represents a $1.58 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Tuesday, September 1st. Stepan's payout ratio is currently -254.84%.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on SCL shares. Weiss Ratings raised Stepan from a "sell (d)" rating to a "sell (d+)" rating in a research note on Wednesday. Zacks Research raised Stepan from a "strong sell" rating to a "hold" rating in a research note on Monday, July 6th. One analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Reduce".

Key Stories Impacting Stepan

Here are the key news stories impacting Stepan this week:

• Positive Sentiment: Earnings and revenue exceeded expectations. Stepan reported quarterly EPS of $1.18, well above the $0.61 analyst consensus, while revenue rose 15% year over year to $684.1 million versus expectations of $635.9 million. Stepan surpasses Q2 earnings and revenue estimates
• Positive Sentiment: Profitability improved sharply. Net income more than doubled to $22.9 million, adjusted EBITDA increased 45% to $74.4 million, and higher volumes and recovering margins benefited both the Surfactant and Polymer businesses. Surfactant sales climbed 18%, while Polymer sales increased 9%. Stepan reports second-quarter 2026 results
• Positive Sentiment: Dividend supports the investment case. The board declared a quarterly dividend of $0.395 per share, payable September 15 to shareholders of record September 1, representing an annualized yield of approximately 2.4%. Stepan declares quarterly dividend
• Neutral Sentiment: Project Catalyst restructuring is progressing. Stepan plans to eliminate approximately 100 global salaried positions as part of its efficiency program. Management expects the changes to improve the cost structure, but the benefits will take time to materialize.
• Negative Sentiment: Restructuring and cash-flow pressures remain risks. The company anticipates $75 million to $80 million in full-year restructuring charges, while second-quarter operating cash flow was only $8.4 million and free cash flow was negative $15 million. These costs may limit near-term earnings and investor confidence.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.