NewMarket (NYSE:NEU) Stock Price Crosses Below 200-Day Moving Average - Here's Why

Key Points

• NewMarket shares fell below their 200-day moving average, trading as low as $756.58 versus the $763.38 average, and last changing hands near $759.42.
• Analyst sentiment remains positive, with ratings upgrades from Weiss Ratings and Wall Street Zen; MarketBeat reports an overall “Buy” consensus.
• NewMarket raised its quarterly dividend to $3.25 per share, or $13 annually, producing a 1.7% yield. The company reported $13.50 in quarterly EPS on $716.5 million in revenue.

NewMarket Corporation (NYSE:NEU - Get Free Report)'s share price passed below its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $763.38 and traded as low as $756.58. NewMarket shares last traded at $759.4240, with a volume of 166,709 shares changing hands.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on NEU shares. Weiss Ratings raised shares of NewMarket from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, October 8th. Wall Street Zen raised shares of NewMarket from a "hold" rating to a "buy" rating in a research note on Saturday, August 1st. One analyst has rated the stock with a Buy rating. Based on data from MarketBeat, the company presently has an average rating of "Buy".

NewMarket Price Performance

The stock has a market cap of $6.99 billion, a P/E ratio of 15.40 and a beta of 0.55. The firm has a 50-day moving average price of $889.53 and a 200-day moving average price of $763.38. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.23 and a current ratio of 2.25.

NewMarket (NYSE:NEU - Get Free Report) last released its earnings results on Wednesday, October 28th. The specialty chemicals company reported $13.50 EPS for the quarter. NewMarket had a return on equity of 25.64% and a net margin of 16.51%. The company had revenue of $716.50 million during the quarter.

NewMarket Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 1st. Shareholders of record on Tuesday, December 15th will be issued a $3.25 dividend. This represents a $13.00 dividend on an annualized basis and a yield of 1.7%. This is a positive change from NewMarket's previous quarterly dividend of $3.00. The ex-dividend date is Tuesday, December 15th. NewMarket's dividend payout ratio is currently 24.34%.

Institutional Trading of NewMarket

Hedge funds have recently modified their holdings of the business. BlackRock Inc. purchased a new stake in shares of NewMarket in the 2nd quarter worth about $556,339,000. Dimensional Fund Advisors LP increased its stake in shares of NewMarket by 6.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 194,507 shares of the specialty chemicals company's stock worth $124,658,000 after acquiring an additional 12,172 shares in the last quarter. Caisse de depot et placement du Quebec purchased a new position in NewMarket during the 2nd quarter valued at about $72,517,000. Bank of New York Mellon Corp purchased a new position in NewMarket during the 2nd quarter valued at about $56,245,000. Finally, Bank of America Corp DE purchased a new position in shares of NewMarket during the second quarter valued at approximately $48,146,000. Institutional investors own 61.09% of the company's stock.

NewMarket Company Profile

NewMarket Corporation NYSE: NEU is a holding company focused primarily on the development, manufacture and sale of petroleum additives. Its products are used to improve the performance, durability, efficiency and environmental characteristics of fuels, lubricants and other petroleum-based products.

NewMarket's principal operating businesses include Afton Chemical Corporation and Ethyl Corporation. Afton Chemical develops and supplies additive packages and components for engine oils, transmission fluids, hydraulic fluids, fuels and other industrial applications.

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