Short Interest in Innospec Inc. (NASDAQ:IOSP) Grows By 14.1%

Key Points

• Short interest rose 14.1% to 460,752 shares as of April 15, implying a days-to-cover of about 2.2 and roughly 1.9% of the float is shorted.
• Innospec beat EPS estimates with $1.50 per share (vs. $1.26 expected) while quarterly revenue fell 2.4% year-over-year and slightly missed forecasts; the stock trades at a 16.3 P/E with a ~$1.9 billion market cap.
• Several institutions materially increased positions—Assenagon, Goldman Sachs and Millennium among them—driving institutional ownership to about 96.64%.

Innospec Inc. (NASDAQ:IOSP - Get Free Report) was the recipient of a large growth in short interest in April. As of April 15th, there was short interest totaling 460,752 shares, a growth of 14.1% from the March 31st total of 403,648 shares. Based on an average daily trading volume, of 213,835 shares, the days-to-cover ratio is currently 2.2 days. Approximately 1.9% of the company's stock are short sold.

Innospec Stock Performance

Shares of IOSP stock opened at $76.26 on Friday. The firm's 50-day moving average is $73.79 and its 200-day moving average is $76.49. The stock has a market cap of $1.90 billion, a price-to-earnings ratio of 16.29, a PEG ratio of 2.03 and a beta of 0.90. Innospec has a 52-week low of $65.51 and a 52-week high of $95.55.

Innospec (NASDAQ:IOSP - Get Free Report) last issued its earnings results on Tuesday, February 17th. The specialty chemicals company reported $1.50 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.26 by $0.24. The company had revenue of $455.60 million for the quarter, compared to analysts' expectations of $460.87 million. Innospec had a net margin of 6.56% and a return on equity of 10.18%. Innospec's quarterly revenue was down 2.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.41 EPS. Sell-side analysts predict that Innospec will post 4.96 EPS for the current fiscal year.

Insider Buying and Selling at Innospec

In other Innospec news, Director David Landless sold 594 shares of the business's stock in a transaction dated Friday, February 27th. The shares were sold at an average price of $76.56, for a total transaction of $45,476.64. Following the sale, the director directly owned 7,632 shares of the company's stock, valued at $584,305.92. The trade was a 7.22% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Larry Padfield sold 594 shares of the business's stock in a transaction dated Friday, February 27th. The stock was sold at an average price of $76.56, for a total transaction of $45,476.64. Following the sale, the director directly owned 9,453 shares in the company, valued at $723,721.68. This trade represents a 5.91% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 4,989 shares of company stock valued at $391,889. Corporate insiders own 1.45% of the company's stock.

Institutional Investors Weigh In On Innospec

A number of institutional investors and hedge funds have recently modified their holdings of IOSP. Assenagon Asset Management S.A. raised its holdings in shares of Innospec by 175.5% in the 1st quarter. Assenagon Asset Management S.A. now owns 490,884 shares of the specialty chemicals company's stock valued at $35,844,000 after purchasing an additional 312,680 shares during the period. Western Standard LLC raised its holdings in shares of Innospec by 894.0% in the 4th quarter. Western Standard LLC now owns 268,367 shares of the specialty chemicals company's stock valued at $20,541,000 after purchasing an additional 241,367 shares during the period. Medina Value Partners LLC bought a new stake in shares of Innospec in the 3rd quarter valued at about $18,206,000. Goldman Sachs Group Inc. raised its holdings in shares of Innospec by 71.6% in the 4th quarter. Goldman Sachs Group Inc. now owns 484,968 shares of the specialty chemicals company's stock valued at $37,119,000 after purchasing an additional 202,325 shares during the period. Finally, Millennium Management LLC raised its holdings in shares of Innospec by 8,176.5% in the 1st quarter. Millennium Management LLC now owns 170,414 shares of the specialty chemicals company's stock valued at $16,147,000 after purchasing an additional 168,355 shares during the period. 96.64% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the stock. Weiss Ratings raised shares of Innospec from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, February 19th. Zacks Research raised shares of Innospec from a "strong sell" rating to a "hold" rating in a research report on Friday, April 24th. Two analysts have rated the stock with a Hold rating, According to MarketBeat, the stock presently has an average rating of "Hold".

Innospec Company Profile

Innospec Incorporated NASDAQ: IOSP is a global specialty chemicals company headquartered in Cleveland, Ohio. The company operates through three principal business segments: Fuel Specialties, Oilfield Services, and Performance Chemicals. In the Fuel Specialties segment, Innospec develops and supplies additives designed to enhance octane levels, improve combustion efficiency, reduce emissions and prevent deposit formation in gasoline and diesel engines. Its Oilfield Services division provides chemical technologies—such as surfactants, corrosion inhibitors and demulsifiers—to support exploration, drilling, production optimization and enhanced oil recovery operations.

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