Short Interest in NewMarket Corporation (NYSE:NEU) Grows By 31.6%

Key Points

• Short interest in NewMarket grew 31.6% in March to 617,168 shares, equal to about 7.2% of the stock sold short and a days-to-cover ratio of 3.6.
• Weiss Ratings downgraded NEU from a Buy (B-) to a Hold (C+), and MarketBeat's consensus analyst rating is currently Hold.
• NewMarket declared a quarterly dividend of $3.00 per share (annualized $12.00, ~1.9% yield) with an ex-dividend date of March 16 and payment on April 1.

NewMarket Corporation (NYSE:NEU - Get Free Report) was the recipient of a large growth in short interest during the month of March. As of March 13th, there was short interest totaling 617,168 shares, a growth of 31.6% from the February 26th total of 468,930 shares. Currently, 7.2% of the company's stock are sold short. Based on an average trading volume of 170,040 shares, the days-to-cover ratio is presently 3.6 days.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings lowered shares of NewMarket from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, March 20th. One equities research analyst has rated the stock with a Hold rating, Based on data from MarketBeat.com, NewMarket has a consensus rating of "Hold".

Insider Activity

In other news, Director Ting Xu bought 400 shares of the stock in a transaction dated Tuesday, February 24th. The stock was bought at an average price of $619.21 per share, for a total transaction of $247,684.00. Following the completion of the acquisition, the director directly owned 929 shares in the company, valued at approximately $575,246.09. This trade represents a 75.61% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 8.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On NewMarket

Several institutional investors have recently bought and sold shares of the company. GAMMA Investing LLC increased its position in NewMarket by 7.3% in the third quarter. GAMMA Investing LLC now owns 220 shares of the specialty chemicals company's stock worth $182,000 after buying an additional 15 shares during the last quarter. OneDigital Investment Advisors LLC lifted its position in shares of NewMarket by 5.8% during the 3rd quarter. OneDigital Investment Advisors LLC now owns 329 shares of the specialty chemicals company's stock valued at $273,000 after buying an additional 18 shares during the last quarter. Great Lakes Advisors LLC grew its stake in shares of NewMarket by 5.5% during the 4th quarter. Great Lakes Advisors LLC now owns 366 shares of the specialty chemicals company's stock worth $252,000 after acquiring an additional 19 shares during the period. MGO One Seven LLC grew its stake in shares of NewMarket by 6.5% during the 3rd quarter. MGO One Seven LLC now owns 328 shares of the specialty chemicals company's stock worth $272,000 after acquiring an additional 20 shares during the period. Finally, Abel Hall LLC increased its holdings in NewMarket by 6.3% in the 4th quarter. Abel Hall LLC now owns 335 shares of the specialty chemicals company's stock worth $230,000 after acquiring an additional 20 shares during the last quarter. Hedge funds and other institutional investors own 61.09% of the company's stock.

NewMarket Stock Performance

Shares of NYSE:NEU traded down $1.41 during midday trading on Friday, reaching $627.72. The company had a trading volume of 55,140 shares, compared to its average volume of 159,131. The company's 50 day moving average price is $636.75 and its 200 day moving average price is $718.93. The company has a current ratio of 2.53, a quick ratio of 1.33 and a debt-to-equity ratio of 0.50. The stock has a market cap of $5.90 billion, a P/E ratio of 14.13 and a beta of 0.50. NewMarket has a 52-week low of $510.07 and a 52-week high of $875.97.

NewMarket (NYSE:NEU - Get Free Report) last posted its quarterly earnings data on Wednesday, February 11th. The specialty chemicals company reported $8.65 earnings per share (EPS) for the quarter. The business had revenue of $635.40 million during the quarter. NewMarket had a net margin of 15.37% and a return on equity of 25.38%.

NewMarket Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Monday, March 16th will be paid a dividend of $3.00 per share. The ex-dividend date is Monday, March 16th. This represents a $12.00 annualized dividend and a dividend yield of 1.9%. NewMarket's dividend payout ratio (DPR) is presently 27.01%.

NewMarket Company Profile

NewMarket Corporation is a specialty chemicals and lubricants company headquartered in Richmond, Virginia. Through its Valvoline business, the company markets a broad portfolio of automotive aftermarket products, including engine oils, transmission fluids, greases and vehicle care solutions. Valvoline products are distributed through retail and commercial channels as well as a network of quick-lube service centers that provide oil changes, preventive maintenance and related services.

In its chemical additives segment, NewMarket develops, manufactures and sells performance additives for fuels, lubricants and industrial fluids.

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