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

Key Points

• Stepan shares rose above their 200-day moving average, reaching $62.44 compared with the $54.98 average, signaling improved technical momentum.
• The company exceeded quarterly expectations, reporting $1.18 in EPS versus the $0.61 consensus and revenue of $684.11 million, up 15% year over year.
• Analyst sentiment remains mixed, with upgrades from some firms but a consensus “Reduce” rating; Stepan also declared a quarterly dividend of $0.395 per share, representing a 2.5% yield.

Stepan Company (NYSE:SCL - Get Free Report)'s stock price passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $54.98 and traded as high as $62.44. Stepan shares last traded at $62.0050, with a volume of 69,796 shares changing hands.

Analyst Ratings Changes

Several analysts recently issued reports on SCL shares. Seaport Research Partners reiterated a "buy" rating and set a $85.00 price target on shares of Stepan in a research report on Friday, August 7th. Zacks Research upgraded shares of Stepan from a "strong sell" rating to a "hold" rating in a research report on Monday, July 6th. Wall Street Zen upgraded shares of Stepan from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. Finally, Weiss Ratings upgraded Stepan from a "sell (d)" rating to a "sell (d+)" rating in a research note on Wednesday, July 29th. One analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Reduce".

Stepan Trading Down 0.2%

The business's 50 day moving average price is $59.52 and its two-hundred day moving average price is $54.98. The company has a current ratio of 1.15, a quick ratio of 0.77 and a debt-to-equity ratio of 0.20. The company has a market capitalization of $1.41 billion, a price-to-earnings ratio of -516.71 and a beta of 0.94.

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

Stepan Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be paid a dividend of $0.395 per share. This represents a $1.58 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is Tuesday, September 1st. Stepan's payout ratio is presently -1,316.67%.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of SCL. Northwestern Mutual Wealth Management Co. acquired a new stake in shares of Stepan during the 2nd quarter valued at $25,000. EverSource Wealth Advisors LLC increased its holdings in Stepan by 206.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 521 shares of the basic materials company's stock worth $28,000 after purchasing an additional 351 shares in the last quarter. 1620 Investment Advisors Inc. increased its holdings in Stepan by 86.9% in the 4th quarter. 1620 Investment Advisors Inc. now owns 570 shares of the basic materials company's stock worth $27,000 after purchasing an additional 265 shares in the last quarter. Allworth Financial LP bought a new position in Stepan in the second quarter valued at about $33,000. Finally, Parallel Advisors LLC raised its position in Stepan by 700.0% in the fourth quarter. Parallel Advisors LLC now owns 688 shares of the basic materials company's stock valued at $33,000 after purchasing an additional 602 shares during the last quarter. 82.70% of the stock is currently owned by institutional investors.

Stepan Company Profile

Stepan Company is a global manufacturer of specialty and intermediate chemicals, primarily known for its development and production of surfactants and related specialty products. The company's portfolio includes a wide range of ingredients used to enhance the performance of consumer and industrial formulations, such as emulsifiers, foam control agents, odor control agents, antimicrobial products and performance additives. These products are integral components in cleaning solutions, personal care items, agrochemical formulations, coatings, oilfield treatments and polymer systems.

Serving a diverse set of end-markets, Stepan's offerings address both consumer-facing and industrial applications.

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