NewMarket (NYSE:NEU) Posts Earnings Results

Key Points

• Q1 results: NewMarket reported quarterly EPS of $12.62 on revenue of $669.72 million, with a return on equity of 25.38% and a net margin of 15.37%.
• Dividend: The company paid a quarterly dividend of $3.00 (annualized $12.00) for a 1.9% yield and a dividend payout ratio of 27.01%.
• Valuation and outlook: NEU trades around $641.62 with a market cap of $6.03 billion and a P/E of 14.44, and was recently downgraded by Weiss Ratings from Buy to Hold, leaving a consensus rating of Hold.

NewMarket (NYSE:NEU - Get Free Report) announced its quarterly earnings data on Wednesday. The specialty chemicals company reported $12.62 EPS for the quarter, Zacks reports. The firm had revenue of $669.72 million during the quarter. NewMarket had a return on equity of 25.38% and a net margin of 15.37%.

NewMarket Stock Performance

Shares of NEU stock opened at $641.62 on Thursday. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.33 and a current ratio of 2.53. NewMarket has a 52 week low of $574.32 and a 52 week high of $875.97. The company's 50 day moving average price is $624.09 and its two-hundred day moving average price is $696.13. The company has a market capitalization of $6.03 billion, a P/E ratio of 14.44 and a beta of 0.48.

NewMarket Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, April 1st. Shareholders of record on Monday, March 16th were issued a dividend of $3.00 per share. This represents a $12.00 annualized dividend and a yield of 1.9%. The ex-dividend date was Monday, March 16th. NewMarket's dividend payout ratio (DPR) is 27.01%.

Insider Buying and Selling at NewMarket

In related news, Director Ting Xu acquired 400 shares of the stock in a transaction dated Tuesday, February 24th. The stock was bought at an average price of $619.21 per share, with a total value of $247,684.00. Following the completion of the transaction, the director directly owned 929 shares of the company's stock, valued at approximately $575,246.09. The trade was a 75.61% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 8.60% of the stock is owned by company insiders.

Hedge Funds Weigh In On NewMarket

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Los Angeles Capital Management LLC bought a new position in NewMarket during the 4th quarter worth about $25,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of NewMarket by 100.0% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 78 shares of the specialty chemicals company's stock worth $44,000 after buying an additional 39 shares during the period. Quarry LP acquired a new position in shares of NewMarket during the third quarter worth about $52,000. Johnson Financial Group Inc. bought a new position in shares of NewMarket during the fourth quarter worth about $86,000. Finally, EverSource Wealth Advisors LLC grew its holdings in shares of NewMarket by 88.7% during the second quarter. EverSource Wealth Advisors LLC now owns 151 shares of the specialty chemicals company's stock worth $104,000 after buying an additional 71 shares in the last quarter. 61.09% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Separately, Weiss Ratings cut NewMarket from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, March 20th. One analyst has rated the stock with a Hold rating, According to data from MarketBeat.com, the company has a consensus rating of "Hold".

About NewMarket

NewMarket Corporation is a specialty chemicals and lubricants company headquartered in Richmond, Virginia. Through its Valvoline business, the company markets a broad portfolio of automotive aftermarket products, including engine oils, transmission fluids, greases and vehicle care solutions. Valvoline products are distributed through retail and commercial channels as well as a network of quick-lube service centers that provide oil changes, preventive maintenance and related services.

In its chemical additives segment, NewMarket develops, manufactures and sells performance additives for fuels, lubricants and industrial fluids.