Innospec (NASDAQ:IOSP) Shares Gap Down - Here's Why

Key Points

• Shares fell sharply: Innospec opened at $91.65 after closing at $99.23 and was last quoted at $88.43.
• Mixed quarterly results: EPS of $1.29 beat estimates of $1.26 and revenue grew 7.2% year over year, but revenue of $473.6 million missed expectations of $479.2 million.
• Dividend increased 9%: The company declared a semiannual dividend of $0.94 per share, payable November 25, and reported $251.9 million in net cash.

Innospec Inc. (NASDAQ:IOSP - Get Free Report)'s share price gapped down prior to trading on Wednesday. The stock had previously closed at $99.23, but opened at $91.65. Innospec shares last traded at $88.4250, with a volume of 37,238 shares traded.

Innospec News Roundup

Here are the key news stories impacting Innospec this week:

• Positive Sentiment: Adjusted and GAAP earnings were $1.29 per share, above the $1.26 consensus and up from $1.12 a year earlier. Revenue rose 7.2% year over year, and the company said all businesses contributed to revenue and operating-income growth. Innospec third-quarter results
• Positive Sentiment: Innospec raised its annual dividend by 9% and declared a semiannual payment of $0.94 per share, payable November 25 to shareholders of record November 17. It also reported $17.4 million in operating cash flow and $251.9 million in net cash. Dividend and financial results
• Negative Sentiment: Quarterly revenue of $473.6 million missed analyst expectations of $479.17 million. The shortfall may temper the positive earnings surprise and contribute to pressure on the shares. Innospec earnings report

Analyst Upgrades and Downgrades

IOSP has been the subject of a number of analyst reports. Weiss Ratings raised shares of Innospec from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, October 8th. Seaport Research Partners restated a "buy" rating and issued a $110.00 price target on shares of Innospec in a report on Thursday, August 6th. Finally, Wall Street Zen cut shares of Innospec from a "strong-buy" rating to a "buy" rating in a research report on Saturday, September 26th. Two analysts have rated the stock with a Hold rating. According to data from MarketBeat.com, the company has an average rating of "Hold".

Innospec Trading Down 16.9%

The stock's 50-day moving average is $96.24 and its 200-day moving average is $84.60. The stock has a market cap of $2.03 billion, a P/E ratio of 16.82, a price-to-earnings-growth ratio of 2.65 and a beta of 0.88.

Innospec (NASDAQ:IOSP - Get Free Report) last announced its earnings results on Tuesday, November 3rd. The specialty chemicals company reported $1.29 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.26 by $0.03. The company had revenue of $473.60 million for the quarter, compared to analyst estimates of $479.17 million. Innospec had a return on equity of 9.22% and a net margin of 6.60%. Innospec's revenue for the quarter was up 7.2% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.12 earnings per share. On average, equities analysts forecast that Innospec Inc. will post 5.01 EPS for the current year.

Innospec Announces Dividend

The business also recently declared a dividend, which will be paid on Wednesday, November 25th. Stockholders of record on Tuesday, November 17th will be paid a dividend of $0.94 per share. This represents a dividend yield of 189.0%. The ex-dividend date of this dividend is Tuesday, November 17th. Innospec's dividend payout ratio is 37.55%.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of IOSP. Root Financial Partners LLC acquired a new stake in shares of Innospec in the 3rd quarter valued at approximately $30,000. Meeder Asset Management Inc. acquired a new position in shares of Innospec during the second quarter worth $36,000. State of Wyoming bought a new position in shares of Innospec in the 3rd quarter valued at $46,000. Farther Finance Advisors LLC lifted its stake in shares of Innospec by 94.0% in the 3rd quarter. Farther Finance Advisors LLC now owns 675 shares of the specialty chemicals company's stock valued at $64,000 after acquiring an additional 327 shares during the last quarter. Finally, Rockefeller Capital Management L.P. boosted its holdings in shares of Innospec by 125.4% during the 4th quarter. Rockefeller Capital Management L.P. now owns 728 shares of the specialty chemicals company's stock valued at $56,000 after acquiring an additional 405 shares in the last quarter. Institutional investors and hedge funds own 96.64% of the company's stock.

Innospec Company Profile

Innospec Inc NASDAQ: IOSP is a global specialty chemicals company that develops, manufactures and markets products used in the fuel, oilfield, personal care and industrial markets. The company serves customers through a portfolio of chemical additives, formulations and technical services designed to improve product performance, efficiency and reliability.

Innospec operates through businesses focused on fuel specialties, performance chemicals and oilfield services. Its fuel-related products include fuel additives for gasoline, diesel, marine and other applications, including detergents, lubricity improvers, cetane improvers and other performance-enhancing formulations.

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