Stepan (NYSE:SCL) Sets New 1-Year High on Better-Than-Expected Earnings

Key Points

• Stepan shares reached a new 52-week high, trading as high as $69.94 after the company reported stronger-than-expected quarterly results.
• The company earned $0.94 per share versus the $0.73 consensus estimate, while revenue rose 17.3% year over year to $692.15 million, exceeding forecasts of $634.30 million.
• Analyst sentiment is generally positive, with MarketBeat assigning the stock an average “Moderate Buy” rating, although one analyst maintains a sell rating. Institutional investors own 82.7% of Stepan’s outstanding shares.

Stepan Company (NYSE:SCL - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday following a better than expected earnings announcement. The company traded as high as $69.94 and last traded at $67.6450, with a volume of 23,616 shares trading hands. The stock had previously closed at $65.21.

The basic materials company reported $0.94 earnings per share for the quarter, topping the consensus estimate of $0.73 by $0.21. The company had revenue of $692.15 million during the quarter, compared to the consensus estimate of $634.30 million. During the same period in the previous year, the firm posted $0.48 EPS. Stepan's revenue for the quarter was up 17.3% on a year-over-year basis.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. Seaport Research Partners reiterated a "buy" rating and issued a $85.00 target price on shares of Stepan in a research report on Friday, August 7th. Weiss Ratings restated a "sell (d+)" rating on shares of Stepan in a research report on Tuesday. Wall Street Zen raised shares of Stepan from a "hold" rating to a "buy" rating in a report on Saturday, August 8th. Finally, Zacks Research upgraded Stepan from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, September 29th. One analyst has rated the stock with a Strong Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy".

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Pullen Investment Management LLC increased its holdings in shares of Stepan by 0.7% during the third quarter. Pullen Investment Management LLC now owns 41,270 shares of the basic materials company's stock valued at $2,574,000 after purchasing an additional 275 shares during the period. Evergreen Capital Management LLC bought a new stake in shares of Stepan during the third quarter valued at about $222,000. Inspire Investing LLC lifted its holdings in Stepan by 307.1% in the third quarter. Inspire Investing LLC now owns 49,768 shares of the basic materials company's stock worth $3,105,000 after purchasing an additional 37,542 shares during the period. Nisa Investment Advisors LLC lifted its holdings in Stepan by 84.9% in the third quarter. Nisa Investment Advisors LLC now owns 1,990 shares of the basic materials company's stock worth $124,000 after purchasing an additional 914 shares during the period. Finally, O Keefe Stevens Advisory Inc. lifted its holdings in Stepan by 4.1% in the third quarter. O Keefe Stevens Advisory Inc. now owns 99,461 shares of the basic materials company's stock worth $6,204,000 after purchasing an additional 3,901 shares during the period. Institutional investors own 82.70% of the company's stock.

Stepan Trading Up 3.6%

The stock's 50-day moving average is $62.67 and its 200-day moving average is $56.61. The stock has a market cap of $1.54 billion, a P/E ratio of -562.98 and a beta of 0.94.

About Stepan

Stepan Company NYSE: SCL is a global manufacturer of specialty and intermediate chemicals. Founded in 1932 and headquartered in Northfield, Illinois, the company develops products used by manufacturers in consumer and industrial markets.

Stepan's principal products include surfactants, which are used in detergents, cleaners, personal-care products, agricultural formulations and other applications. The company also produces polyurethane polyols, phthalic anhydride and other specialty chemicals used in insulation, construction materials, coatings, plastics, food packaging and related industrial products.

Stepan serves customers across North America, Latin America, Europe and Asia through a network of manufacturing facilities, research and development operations, and sales organizations.

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