Royal Bank Of Canada Reiterates Outperform Rating for Valvoline (NYSE:VVV)

Key Points

• Royal Bank of Canada has reiterated its outperform rating for Valvoline (NYSE: VVV) with a price target of $48.00, suggesting a potential upside of 36.85% from the current stock price.
• Valvoline's recent quarterly earnings showed a 4.2% increase in revenue year-over-year, with earnings per share reported at $0.47, exceeding expectations by $0.01.
• Institutional investors and hedge funds own 96.13% of Valvoline's stock, indicating strong institutional interest in the company.

Valvoline (NYSE:VVV - Get Free Report)'s stock had its "outperform" rating reissued by equities researchers at Royal Bank Of Canada in a research report issued on Tuesday,Benzinga reports. They presently have a $48.00 price target on the basic materials company's stock. Royal Bank Of Canada's price objective would suggest a potential upside of 36.85% from the company's current price.

Several other research firms have also commented on VVV. Cfra Research upgraded Valvoline to a "hold" rating in a research report on Monday, July 7th. Weiss Ratings restated a "hold (c+)" rating on shares of Valvoline in a research report on Wednesday, October 8th. Zacks Research upgraded Valvoline to a "hold" rating in a report on Tuesday, August 12th. Wall Street Zen lowered Valvoline from a "hold" rating to a "sell" rating in a report on Friday, September 26th. Finally, Piper Sandler lifted their price target on Valvoline from $44.00 to $50.00 and gave the stock an "overweight" rating in a report on Monday, September 8th. Nine analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat, Valvoline presently has a consensus rating of "Moderate Buy" and a consensus target price of $42.62.

Valvoline Price Performance

Shares of Valvoline stock traded up $0.18 during mid-day trading on Tuesday, reaching $35.08. 70,639 shares of the stock traded hands, compared to its average volume of 1,716,070. Valvoline has a fifty-two week low of $31.01 and a fifty-two week high of $43.74. The company has a quick ratio of 0.60, a current ratio of 0.73 and a debt-to-equity ratio of 3.37. The stock has a market capitalization of $4.46 billion, a PE ratio of 16.31 and a beta of 1.18. The business has a 50-day moving average of $37.81 and a 200 day moving average of $36.41.

Valvoline (NYSE:VVV - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The basic materials company reported $0.47 EPS for the quarter, beating the consensus estimate of $0.46 by $0.01. The firm had revenue of $439.00 million during the quarter, compared to analysts' expectations of $436.35 million. Valvoline had a return on equity of 84.85% and a net margin of 16.43%.The business's revenue for the quarter was up 4.2% on a year-over-year basis. During the same quarter last year, the firm earned $0.45 earnings per share. On average, analysts predict that Valvoline will post 1.63 EPS for the current year.

Insider Transactions at Valvoline

In related news, CFO J Kevin Willis purchased 12,725 shares of the company's stock in a transaction that occurred on Thursday, August 14th. The shares were purchased at an average price of $39.41 per share, for a total transaction of $501,492.25. Following the transaction, the chief financial officer directly owned 12,725 shares of the company's stock, valued at approximately $501,492.25. The trade was a ∞ increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 0.66% of the stock is owned by company insiders.

Hedge Funds Weigh In On Valvoline

Institutional investors have recently added to or reduced their stakes in the stock. Maseco LLP acquired a new position in Valvoline in the 2nd quarter valued at about $27,000. Elevation Point Wealth Partners LLC acquired a new position in Valvoline during the 2nd quarter worth approximately $43,000. Parallel Advisors LLC increased its position in Valvoline by 67.5% during the 2nd quarter. Parallel Advisors LLC now owns 1,164 shares of the basic materials company's stock worth $44,000 after purchasing an additional 469 shares during the period. Steph & Co. acquired a new position in Valvoline during the 2nd quarter worth approximately $45,000. Finally, CWM LLC increased its position in Valvoline by 50.8% during the 1st quarter. CWM LLC now owns 1,440 shares of the basic materials company's stock worth $50,000 after purchasing an additional 485 shares during the period. Institutional investors and hedge funds own 96.13% of the company's stock.

About Valvoline

Valvoline Inc engages in the operation and franchising of vehicle service centers and retail stores in the United States and Canada. The company, through its service centers, provides fluid exchange for motor oil, transmission and differential fluid, and coolant; parts replacement for batteries, filters, wiper blades, and belts; and safety services, such as tire inflation and rotation, bulbs, and safety checks.

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