Innospec (NASDAQ:IOSP) Stock Breaks Below 200 Day Moving Average - Here's Why

Key Points

• Innospec shares fell below their 200-day moving average, trading as low as $79.89 and last at $80.65, versus the average of $84.59.
• Third-quarter adjusted EPS of $1.29 beat estimates and rose from $1.12 a year earlier, while revenue grew 7.2% to $473.6 million but missed forecasts.
• Management expects $55 million–$60 million in free cash flow next year and reported $251.9 million in net cash; it also raised its annual dividend by 9%.

Innospec Inc. (NASDAQ:IOSP - Get Free Report)'s share price crossed below its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $84.59 and traded as low as $79.89. Innospec shares last traded at $80.65, with a volume of 482,417 shares changing hands.

More Innospec News

Here are the key news stories impacting Innospec this week:

• Positive Sentiment: Adjusted EPS was $1.29, above the $1.26 consensus and up from $1.12 a year earlier. Revenue increased 7.2% year over year to $473.6 million, though it missed the $479.2 million estimate. Innospec third-quarter results
• Positive Sentiment: Management expects $55 million to $60 million in free cash flow next year as North Carolina facility upgrades are completed by year-end. Innospec also reported $251.9 million in net cash. Free cash flow outlook
• Positive Sentiment: The company raised its annual dividend by 9% and declared a semi-annual payment of $0.94 per share, payable November 25 to shareholders of record November 17. Dividend and earnings announcement
• Negative Sentiment: Despite the EPS beat and year-over-year revenue growth, sales missed analyst expectations, which may be weighing on shares and tempering the upbeat earnings news.

Analyst Ratings Changes

Several research analysts recently commented on IOSP shares. Wall Street Zen cut shares of Innospec from a "strong-buy" rating to a "buy" rating in a report on Saturday, September 26th. Weiss Ratings raised Innospec from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, October 8th. Finally, Seaport Research Partners reiterated a "buy" rating and set a $110.00 price objective on shares of Innospec in a research note on Thursday, August 6th. Two equities research analysts have rated the stock with a Hold rating. According to MarketBeat.com, the company currently has a consensus rating of "Hold".

Innospec Trading Down 18.7%

The company has a market capitalization of $1.99 billion, a price-to-earnings ratio of 14.22, a price-to-earnings-growth ratio of 2.64 and a beta of 0.88. The firm's 50 day moving average price is $95.97 and its two-hundred day moving average price is $84.59.

Innospec (NASDAQ:IOSP - Get Free Report) last issued its earnings results on Tuesday, November 3rd. The specialty chemicals company reported $1.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.26 by $0.03. The business had revenue of $473.60 million during the quarter, compared to the consensus estimate of $479.17 million. Innospec had a net margin of 7.49% and a return on equity of 9.42%. Innospec's revenue was up 7.2% on a year-over-year basis. During the same period last year, the business posted $1.12 EPS. As a group, equities research analysts predict that Innospec Inc. will post 5.01 EPS for the current year.

Institutional Investors Weigh In On Innospec

Large investors have recently added to or reduced their stakes in the business. Brighton Jones LLC raised its stake in Innospec by 6.8% in the third quarter. Brighton Jones LLC now owns 3,456 shares of the specialty chemicals company's stock valued at $329,000 after purchasing an additional 221 shares in the last quarter. Root Financial Partners LLC bought a new position in Innospec in the third quarter worth approximately $30,000. Farther Finance Advisors LLC raised its stake in shares of Innospec by 94.0% in the third quarter. Farther Finance Advisors LLC now owns 675 shares of the specialty chemicals company's stock worth $64,000 after purchasing an additional 327 shares during the last quarter. Allworth Financial LP lifted its holdings in Innospec by 40.9% during the second quarter. Allworth Financial LP now owns 1,310 shares of the specialty chemicals company's stock worth $107,000 after acquiring an additional 380 shares during the period. Finally, Rockefeller Capital Management L.P. increased its position in Innospec by 125.4% in the fourth quarter. Rockefeller Capital Management L.P. now owns 728 shares of the specialty chemicals company's stock worth $56,000 after buying an additional 405 shares during the last quarter. Institutional investors own 96.64% of the company's stock.

About Innospec

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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