Valvoline (NYSE:VVV) Stock Price Breaks Above 200-Day Moving Average - What's Next?

Key Points

• Valvoline shares moved above their 200-day moving average of $34.35, trading near $34.36 after reaching $34.43, with about 4 million shares changing hands.
• Analysts remain broadly positive, with 13 Buy ratings and five Holds, producing a “Moderate Buy” consensus and an average price target of $41.17. However, several firms recently reduced their targets to around $40 or lower.
• The company reported quarterly EPS of $0.57, exceeding estimates, while revenue rose 24.1% year over year to $544.6 million. Valvoline also authorized a $175 million share-repurchase program, covering up to 4.8% of outstanding shares.

Valvoline (NYSE:VVV - Get Free Report) crossed above its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $34.35 and traded as high as $34.43. Valvoline shares last traded at $34.3630, with a volume of 4,040,383 shares changing hands.

Analyst Ratings Changes

A number of analysts have issued reports on VVV shares. Morgan Stanley reissued a "buy" rating on shares of Valvoline in a research report on Thursday, October 1st. TD Cowen dropped their price target on Valvoline from $45.00 to $40.00 and set a "buy" rating on the stock in a research report on Wednesday, October 14th. Stephens upped their price target on Valvoline from $44.00 to $48.00 and gave the company an "overweight" rating in a research report on Tuesday, July 28th. Wells Fargo & Company cut their price target on Valvoline from $45.00 to $40.00 and set an "overweight" rating for the company in a research note on Friday, October 23rd. Finally, Citigroup decreased their price objective on Valvoline from $41.00 to $34.00 and set a "neutral" rating for the company in a report on Thursday, October 1st. Thirteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $41.17.

Valvoline Stock Up 6.4%

The company has a market capitalization of $4.38 billion, a PE ratio of 42.95 and a beta of 1.03. The company has a debt-to-equity ratio of 3.77, a quick ratio of 0.58 and a current ratio of 0.70. The stock's 50 day moving average is $30.67 and its 200 day moving average is $34.35.

Valvoline (NYSE:VVV - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The basic materials company reported $0.57 EPS for the quarter, topping the consensus estimate of $0.50 by $0.07. Valvoline had a net margin of 5.17% and a return on equity of 65.12%. The company had revenue of $544.60 million during the quarter, compared to the consensus estimate of $543.21 million. During the same period last year, the firm earned $0.47 EPS. Valvoline's revenue for the quarter was up 24.1% on a year-over-year basis. Valvoline has set its FY 2026 guidance at 1.700-1.750 EPS. On average, sell-side analysts anticipate that Valvoline will post 1.76 EPS for the current fiscal year.

Valvoline announced that its board has initiated a stock repurchase program on Tuesday, September 29th that authorizes the company to buy back $175 million in outstanding shares. This buyback authorization authorizes the basic materials company to buy up to 4.8% of its shares through open market purchases. Stock buyback programs are usually an indication that the company's board believes its stock is undervalued.

Insiders Place Their Bets

In related news, CAO Jordan M. Denny acquired 1,506 shares of the firm's stock in a transaction that occurred on Wednesday, August 12th. The shares were bought at an average cost of $33.20 per share, for a total transaction of $49,999.20. Following the purchase, the chief accounting officer owned 4,121 shares in the company, valued at $136,817.20. This trade represents a 57.59% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Julie O'Daniel sold 3,700 shares of the stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $33.81, for a total value of $125,097.00. Following the sale, the insider directly owned 14,279 shares in the company, valued at $482,772.99. This trade represents a 20.58% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.66% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new position in Valvoline in the 2nd quarter worth about $501,851,000. Junto Capital Management LP purchased a new stake in shares of Valvoline in the 2nd quarter valued at about $81,689,000. Canada Pension Plan Investment Board purchased a new stake in shares of Valvoline in the 2nd quarter valued at about $52,960,000. Bank of America Corp DE bought a new stake in shares of Valvoline during the 2nd quarter valued at about $46,514,000. Finally, TimesSquare Capital Management LLC bought a new stake in shares of Valvoline during the 2nd quarter valued at about $43,541,000. Institutional investors own 96.13% of the company's stock.

Valvoline Company Profile

Valvoline Inc NYSE: VVV is an automotive maintenance services company that operates and franchises Valvoline Instant Oil Change service centers. Its locations provide preventive vehicle maintenance designed to help drivers keep their cars operating reliably and extend the useful life of key components.

The company's services include oil changes, fluid replacement and top-offs, battery testing and replacement, air-conditioning services, tire rotation, tire services, and replacement of filters, wiper blades, and other routine maintenance items.

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