Tensile Capital Management LP Purchases 125,000 Shares of Valvoline $VVV

Key Points

• Tensile Capital Management LP increased its stake in Valvoline by 6.8% in the first quarter, now holding 1,965,179 shares, which accounts for approximately 8.7% of its investment portfolio.
• Valvoline reported a quarterly EPS of $0.47, beating analyst expectations of $0.46, with revenues rising 4.2% year-over-year to $439 million.
• Analysts from Goldman Sachs raised Valvoline's rating from "hold" to "buy," with a target price increase from $40 to $45, reflecting positive sentiment around the stock.

Tensile Capital Management LP grew its stake in Valvoline (NYSE:VVV - Free Report) by 6.8% during the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 1,965,179 shares of the basic materials company's stock after purchasing an additional 125,000 shares during the quarter. Valvoline makes up approximately 8.7% of Tensile Capital Management LP's holdings, making the stock its 5th biggest holding. Tensile Capital Management LP owned about 1.55% of Valvoline worth $68,408,000 at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of VVV. Boston Partners acquired a new stake in Valvoline during the first quarter worth about $82,748,000. Millennium Management LLC raised its stake in Valvoline by 315.4% during the first quarter. Millennium Management LLC now owns 1,510,338 shares of the basic materials company's stock worth $52,575,000 after acquiring an additional 1,146,728 shares during the period. Squarepoint Ops LLC raised its stake in Valvoline by 653.5% during the fourth quarter. Squarepoint Ops LLC now owns 1,147,254 shares of the basic materials company's stock worth $41,508,000 after acquiring an additional 994,988 shares during the period. Channing Capital Management LLC acquired a new stake in Valvoline during the first quarter worth about $25,985,000. Finally, Mawer Investment Management Ltd. increased its stake in shares of Valvoline by 144.6% in the first quarter. Mawer Investment Management Ltd. now owns 1,224,420 shares of the basic materials company's stock valued at $42,622,000 after purchasing an additional 723,938 shares during the period. Institutional investors and hedge funds own 96.13% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the stock. Zacks Research upgraded shares of Valvoline to a "hold" rating in a research note on Tuesday, August 12th. Cfra Research upgraded shares of Valvoline to a "hold" rating in a report on Monday, July 7th. Piper Sandler raised their price objective on shares of Valvoline from $44.00 to $50.00 and gave the stock an "overweight" rating in a research note on Monday. Wall Street Zen lowered shares of Valvoline from a "hold" rating to a "sell" rating in a research note on Sunday. Finally, The Goldman Sachs Group upgraded shares of Valvoline from a "hold" rating to a "buy" rating and raised their price target for the company from $40.00 to $45.00 in a report on Tuesday, June 3rd. Nine investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $42.77.

Insider Buying and Selling at Valvoline

In other Valvoline news, CFO J Kevin Willis bought 12,725 shares of the firm's stock in a transaction dated Thursday, August 14th. The shares were acquired at an average cost of $39.41 per share, for a total transaction of $501,492.25. Following the transaction, the chief financial officer owned 12,725 shares in the company, valued at approximately $501,492.25. The trade was a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Company insiders own 0.66% of the company's stock.

Valvoline Stock Performance

NYSE VVV traded down $0.24 during midday trading on Tuesday, hitting $39.74. The company had a trading volume of 2,087,355 shares, compared to its average volume of 1,323,895. The company has a quick ratio of 0.60, a current ratio of 0.73 and a debt-to-equity ratio of 3.37. The stock has a market cap of $5.05 billion, a price-to-earnings ratio of 18.48 and a beta of 1.21. The firm has a fifty day simple moving average of $38.08 and a two-hundred day simple moving average of $36.15. Valvoline has a fifty-two week low of $31.01 and a fifty-two week high of $43.74.

Valvoline (NYSE:VVV - Get Free Report) last issued its earnings results on Wednesday, August 6th. The basic materials company reported $0.47 earnings per share for the quarter, beating the consensus estimate of $0.46 by $0.01. Valvoline had a net margin of 16.43% and a return on equity of 84.85%. The business had revenue of $439.00 million for the quarter, compared to analyst estimates of $436.35 million. During the same period in the previous year, the business earned $0.45 EPS. The firm's revenue was up 4.2% on a year-over-year basis. Equities analysts forecast that Valvoline will post 1.63 earnings per share for the current fiscal year.

About Valvoline

Valvoline Inc engages in the operation and franchising of vehicle service centers and retail stores in the United States and Canada. The company, through its service centers, provides fluid exchange for motor oil, transmission and differential fluid, and coolant; parts replacement for batteries, filters, wiper blades, and belts; and safety services, such as tire inflation and rotation, bulbs, and safety checks.