Stepan (NYSE:SCL) Stock Crosses Above 200-Day Moving Average - What's Next?

Key Points

• Stepan shares crossed above their 200-day moving average, reaching $62.22 versus the average of $57.07, signaling improved technical momentum.
• Analyst sentiment has strengthened, with several upgrades and Seaport Research Partners maintaining a “buy” rating with an $85 price target; MarketBeat classifies the stock as a “Moderate Buy.”
• Stepan beat quarterly earnings and revenue estimates, reporting $1.18 in EPS and $684.11 million in revenue, while maintaining a quarterly dividend of $0.395 per share, equivalent to a 2.5% annual yield.

Shares of Stepan Company (NYSE:SCL - Get Free Report) crossed above its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $57.07 and traded as high as $62.22. Stepan shares last traded at $62.0950, with a volume of 97,167 shares.

Analysts Set New Price Targets

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

Stepan Price Performance

The stock has a 50-day moving average price of $62.89 and a 200 day moving average price of $57.07. The company has a debt-to-equity ratio of 0.20, a current ratio of 1.15 and a quick ratio of 0.77. The firm has a market cap of $1.41 billion, a price-to-earnings ratio of -517.46 and a beta of 0.94.

Stepan (NYSE:SCL - Get Free Report) last posted its earnings results on Wednesday, July 29th. The basic materials company reported $1.18 earnings per share for the quarter, beating the consensus estimate of $0.61 by $0.57. The business had revenue of $684.11 million during the quarter, compared to the consensus estimate of $635.85 million. Stepan had a positive return on equity of 3.90% and a negative net margin of 0.11%. The business's quarterly revenue was up 15.0% on a year-over-year basis. During the same period in the previous year, the business earned $0.52 EPS. As a group, equities research analysts forecast that Stepan Company will post 2.69 earnings per share for the current fiscal year.

Stepan Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders 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 dividend on an annualized basis and a yield of 2.5%. Stepan's payout ratio is currently -1,316.67%.

Institutional Investors Weigh In On Stepan

Large investors have recently modified their holdings of the company. O Keefe Stevens Advisory Inc. raised its holdings in shares of 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 valued at $6,204,000 after buying an additional 3,901 shares during the last quarter. Farther Finance Advisors LLC boosted its stake in shares of Stepan by 194.8% during the third quarter. Farther Finance Advisors LLC now owns 395 shares of the basic materials company's stock worth $25,000 after buying an additional 261 shares during the period. Core Capital Management & Research inc. acquired a new stake in shares of Stepan during the second quarter worth about $2,670,000. Integrated Wealth Concepts LLC purchased a new position in shares of Stepan during the second quarter worth about $85,000. Finally, Squarepoint Ops LLC purchased a new position in shares of Stepan during the second quarter worth about $283,000. 82.70% of the stock is owned by institutional investors and hedge funds.

Stepan Company Profile

Stepan Company NYSE: SCL is a global manufacturer of specialty and intermediate chemicals. The company produces surfactants, polymers and specialty products used in a broad range of consumer and industrial applications, including household and institutional cleaning, personal care, agriculture, food, construction, automotive, coatings and insulation.

Stepan's surfactants are used as cleaning agents, emulsifiers, dispersants and wetting agents in products such as detergents, shampoos, agricultural formulations and industrial cleaners.

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