Stepan (NYSE:SCL) Stock Price Passes Above Two Hundred Day Moving Average - Here's Why

Key Points

• Stepan shares crossed above their 200-day moving average, trading as high as $63.05 versus the $55.09 average, and last changing hands near $62.98.
• The company reported strong quarterly results, with earnings of $1.18 per share beating estimates of $0.61 and revenue rising 15% year over year to $684.11 million.
• Analyst sentiment remains mixed: Seaport Research Partners maintained a Buy rating with an $85 price target, while MarketBeat’s overall consensus rating is “Reduce.” Stepan also paid a quarterly dividend of $0.395, representing a 2.5% yield.

Stepan Company (NYSE:SCL - Get Free Report) shares crossed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $55.09 and traded as high as $63.05. Stepan shares last traded at $62.9780, with a volume of 242,225 shares traded.

Analyst Ratings Changes

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

Stepan Price Performance

The company has a 50 day moving average of $61.91 and a 200-day moving average of $55.09. The firm has a market capitalization of $1.43 billion, a P/E ratio of -524.82 and a beta of 0.94. The company has a current ratio of 1.15, a quick ratio of 0.77 and a debt-to-equity ratio of 0.20.

Stepan (NYSE:SCL - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The basic materials company reported $1.18 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.57. Stepan had a positive return on equity of 3.90% and a negative net margin of 0.11%.The firm had revenue of $684.11 million for the quarter, compared to analysts' expectations of $635.85 million. During the same quarter last year, the business earned $0.52 EPS. The company's quarterly revenue was up 15.0% compared to the same quarter last year. On average, sell-side analysts predict that Stepan Company will post 2.69 EPS 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 $0.395 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

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Core Capital Management & Research inc. bought a new stake in Stepan in the 2nd quarter valued at about $2,670,000. Integrated Wealth Concepts LLC bought a new position in shares of Stepan during the second quarter worth approximately $85,000. Squarepoint Ops LLC bought a new position in shares of Stepan during the second quarter worth approximately $283,000. Allworth Financial LP raised its position in shares of Stepan by 80.2% in the second quarter. Allworth Financial LP now owns 600 shares of the basic materials company's stock valued at $33,000 after buying an additional 267 shares in the last quarter. Finally, Corient Private Wealth LP acquired a new stake in shares of Stepan in the second quarter valued at approximately $257,000. Institutional investors and hedge funds 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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