Innospec (NASDAQ:IOSP) Share Price Crosses Above 200 Day Moving Average - Should You Sell?

Key Points

• Technical breakout: Innospec's stock crossed above its 200‑day moving average (200‑DMA $76.50), trading as high as $77.29 and last at $77.15 on volume of 153,086 shares, up about 0.6%.
• Mixed fundamentals and analyst view: Q4 EPS beat ($1.50 vs. $1.26) but revenue missed and fell 2.4% YoY, and the stock carries an average analyst rating of "Reduce" after recent downgrades; the company has a $1.92B market cap and a P/E of ~16.5.
• Insider selling amid heavy institutional ownership: Directors recently sold shares (insiders sold 4,989 shares in the last 90 days) while institutional/hedge fund ownership is reported at about 96.6% and insiders hold ~1.45% of the stock.

Innospec Inc. (NASDAQ:IOSP - Get Free Report)'s stock price passed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $76.50 and traded as high as $77.29. Innospec shares last traded at $77.15, with a volume of 153,086 shares changing hands.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. Zacks Research cut shares of Innospec from a "hold" rating to a "strong sell" rating in a report on Thursday, February 19th. Weiss Ratings raised shares of Innospec from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, February 19th. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Reduce".

Innospec Stock Up 0.6%

The stock's 50-day simple moving average is $74.50 and its two-hundred day simple moving average is $76.50. The company has a market capitalization of $1.92 billion, a price-to-earnings ratio of 16.49, a PEG ratio of 2.06 and a beta of 0.90.

Innospec (NASDAQ:IOSP - Get Free Report) last issued its earnings results on Tuesday, February 17th. The specialty chemicals company reported $1.50 EPS for the quarter, beating analysts' consensus estimates of $1.26 by $0.24. The business had revenue of $455.60 million during the quarter, compared to analysts' expectations of $460.87 million. Innospec had a net margin of 6.56% and a return on equity of 10.18%. The company's quarterly revenue was down 2.4% compared to the same quarter last year. During the same period in the prior year, the business earned $1.41 earnings per share. On average, sell-side analysts forecast that Innospec Inc. will post 4.96 EPS for the current year.

Insider Activity

In related news, Director Larry Padfield sold 594 shares of the business's stock in a transaction dated Friday, February 27th. The shares were sold at an average price of $76.56, for a total value of $45,476.64. Following the sale, the director directly owned 9,453 shares in the company, valued at approximately $723,721.68. The trade was a 5.91% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Milton C. Blackmore sold 594 shares of the company's stock in a transaction dated Friday, February 27th. The shares were sold at an average price of $76.56, for a total transaction of $45,476.64. Following the completion of the transaction, the director directly owned 10,530 shares in the company, valued at $806,176.80. The trade was a 5.34% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 4,989 shares of company stock worth $391,889. Corporate insiders own 1.45% of the company's stock.

Institutional Trading of Innospec

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Versant Capital Management Inc increased its stake in shares of Innospec by 378.1% during the third quarter. Versant Capital Management Inc now owns 545 shares of the specialty chemicals company's stock worth $42,000 after buying an additional 431 shares during the period. Hantz Financial Services Inc. boosted its holdings in Innospec by 271.0% in the fourth quarter. Hantz Financial Services Inc. now owns 575 shares of the specialty chemicals company's stock valued at $44,000 after purchasing an additional 420 shares in the last quarter. EverSource Wealth Advisors LLC boosted its holdings in Innospec by 1,159.5% in the second quarter. EverSource Wealth Advisors LLC now owns 529 shares of the specialty chemicals company's stock valued at $44,000 after purchasing an additional 487 shares in the last quarter. Allworth Financial LP boosted its holdings in shares of Innospec by 31.0% in the third quarter. Allworth Financial LP now owns 588 shares of the specialty chemicals company's stock valued at $45,000 after acquiring an additional 139 shares during the period. Finally, Danske Bank A S acquired a new stake in shares of Innospec in the third quarter valued at approximately $46,000. 96.64% of the stock is currently owned by hedge funds and other institutional investors.

Innospec Company Profile

Innospec Incorporated NASDAQ: IOSP is a global specialty chemicals company headquartered in Cleveland, Ohio. The company operates through three principal business segments: Fuel Specialties, Oilfield Services, and Performance Chemicals. In the Fuel Specialties segment, Innospec develops and supplies additives designed to enhance octane levels, improve combustion efficiency, reduce emissions and prevent deposit formation in gasoline and diesel engines. Its Oilfield Services division provides chemical technologies—such as surfactants, corrosion inhibitors and demulsifiers—to support exploration, drilling, production optimization and enhanced oil recovery operations.

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