Stepan (NYSE:SCL) Share Price Crosses Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Stepan shares rose above their 200-day moving average, reaching $64.76 and last trading near $64.48 versus the $55.65 average.
• The company exceeded quarterly expectations, reporting $1.18 in EPS versus the $0.61 consensus and $684.11 million in revenue, up 15% year over year.
• Analyst sentiment remains cautious despite some upgrades: the consensus rating is “Reduce,” while Seaport Research Partners maintained a Buy rating with an $85 price target. Stepan also pays a quarterly dividend of $0.395, yielding about 2.5%.

Stepan Company (NYSE:SCL - Get Free Report) shares passed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $55.65 and traded as high as $64.76. Stepan shares last traded at $64.4770, with a volume of 137,272 shares trading hands.

Wall Street Analysts Forecast Growth

SCL has been the subject of several recent analyst reports. Wall Street Zen upgraded shares of Stepan from a "hold" rating to a "buy" rating in a research note on Saturday, August 8th. Weiss Ratings raised Stepan from a "sell (d)" rating to a "sell (d+)" rating in a research report on Wednesday, July 29th. Seaport Research Partners reissued a "buy" rating and set a $85.00 target price on shares of Stepan in a report on Friday, August 7th. Finally, Zacks Research raised Stepan from a "strong sell" rating to a "hold" rating in a report on Monday, July 6th. One investment analyst has rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Reduce".

Stepan Trading Up 1.0%

The company has a market cap of $1.47 billion, a P/E ratio of -537.31 and a beta of 0.94. The business has a fifty day moving average price of $62.60 and a 200-day moving average price of $55.65. The company has a quick ratio of 0.77, a current ratio of 1.15 and a debt-to-equity ratio of 0.20.

Stepan (NYSE:SCL - Get Free Report) last announced its earnings results on Wednesday, July 29th. The basic materials company reported $1.18 earnings per share for the quarter, topping analysts' consensus estimates of $0.61 by $0.57. The company had revenue of $684.11 million for the quarter, compared to analyst estimates of $635.85 million. Stepan had a positive return on equity of 3.90% and a negative net margin of 0.11%.The firm's quarterly revenue was up 15.0% compared to the same quarter last year. During the same quarter last year, the company earned $0.52 earnings per share. On average, analysts forecast that Stepan Company will post 2.69 earnings per share for the current year.

Stepan Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st were paid a $0.3950 dividend. The ex-dividend date was Tuesday, September 1st. This represents a $1.58 annualized dividend and a dividend yield of 2.5%. Stepan's dividend payout ratio is -1,316.67%.

Institutional Trading of Stepan

A number of institutional investors have recently bought and sold shares of SCL. Northwestern Mutual Wealth Management Co. acquired a new position in Stepan in the second quarter valued at about $25,000. Allworth Financial LP bought a new position in Stepan in the 2nd quarter valued at about $33,000. State of Wyoming acquired a new position in shares of Stepan in the 2nd quarter valued at approximately $77,000. Integrated Wealth Concepts LLC bought a new stake in shares of Stepan during the 2nd quarter worth approximately $85,000. Finally, Quantbot Technologies LP acquired a new stake in shares of Stepan during the 2nd quarter worth approximately $129,000. Institutional investors own 82.70% of the company's stock.

Stepan Company Profile

Stepan Company is a global manufacturer of specialty and intermediate chemicals. Founded in 1932 and headquartered in Northbrook, Illinois, the company develops, manufactures and sells chemical products used by businesses in a range of consumer and industrial markets.

Its principal products include surfactants, which are used in detergents, cleaners, personal care products, agricultural formulations and food applications. Stepan also produces polyurethane polyols, specialty polymers and other chemical intermediates used in insulation, construction materials, automotive products, coatings, adhesives and other industrial applications.

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

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