Stepan (NYSE:SCL) Downgraded to "Sell (D+)" Rating by Weiss Ratings

Key Points

• Stepan Company has been downgraded by Weiss Ratings from a "hold (C-)" rating to a "sell (D+)" rating, indicating a bearish outlook from analysts.
• In addition to Weiss, Zacks Research also downgraded Stepan from a "hold" to a "strong sell," contributing to an average rating of "Sell" across research analysts.
• Despite the downgrades, Stepan's stock rose 2.1% to $48.72, with the company recently reporting quarterly earnings of $0.52 per share, missing estimates by $0.40.

Stepan (NYSE:SCL - Get Free Report) was downgraded by equities research analysts at Weiss Ratings from a "hold (c-)" rating to a "sell (d+)" rating in a research note issued to investors on Wednesday,Weiss Ratings reports.

A number of other research analysts have also weighed in on SCL. Zacks Research lowered Stepan from a "hold" rating to a "strong sell" rating in a research report on Wednesday, August 13th. Wall Street Zen lowered Stepan from a "buy" rating to a "hold" rating in a research report on Saturday, August 2nd. Two research analysts have rated the stock with a Sell rating, According to MarketBeat, the stock has an average rating of "Sell".

Stepan Stock Up 2.1%

SCL stock opened at $48.72 on Wednesday. Stepan has a twelve month low of $44.23 and a twelve month high of $82.08. The company has a quick ratio of 0.86, a current ratio of 1.35 and a debt-to-equity ratio of 0.31. The firm has a market cap of $1.10 billion, a PE ratio of 19.18 and a beta of 0.96. The business has a 50 day moving average of $49.18 and a 200 day moving average of $52.33.

Stepan (NYSE:SCL - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The basic materials company reported $0.52 earnings per share for the quarter, missing analysts' consensus estimates of $0.92 by ($0.40). Stepan had a net margin of 2.57% and a return on equity of 4.78%. The company had revenue of $594.69 million for the quarter, compared to the consensus estimate of $598.25 million. During the same period last year, the business earned $0.41 EPS. The firm's quarterly revenue was up 6.9% on a year-over-year basis. On average, research analysts forecast that Stepan will post 3.55 EPS for the current fiscal year.

Hedge Funds Weigh In On Stepan

A number of institutional investors and hedge funds have recently modified their holdings of SCL. GAMMA Investing LLC boosted its stake in shares of Stepan by 11,484.7% in the 1st quarter. GAMMA Investing LLC now owns 14,365 shares of the basic materials company's stock worth $791,000 after buying an additional 14,241 shares during the last quarter. Pullen Investment Management LLC boosted its stake in shares of Stepan by 225.9% in the 1st quarter. Pullen Investment Management LLC now owns 22,990 shares of the basic materials company's stock worth $1,265,000 after buying an additional 15,935 shares during the last quarter. World Equity Group Inc. purchased a new position in shares of Stepan in the 1st quarter worth $273,000. Grace & White Inc. NY boosted its stake in shares of Stepan by 11.4% in the 1st quarter. Grace & White Inc. NY now owns 135,013 shares of the basic materials company's stock worth $7,431,000 after buying an additional 13,866 shares during the last quarter. Finally, Copeland Capital Management LLC boosted its stake in shares of Stepan by 67.9% in the 1st quarter. Copeland Capital Management LLC now owns 1,048 shares of the basic materials company's stock worth $58,000 after buying an additional 424 shares during the last quarter. 82.70% of the stock is currently owned by hedge funds and other institutional investors.

About Stepan

Stepan Company, together with its subsidiaries, produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products worldwide. It operates through three segments: Surfactants, Polymers, and Specialty Products. The Surfactants segment offers surfactants that are used in consumer and industrial cleaning and disinfection products, including detergents for washing clothes, dishes, carpets, and floors and walls, as well as shampoos and body washes; and other applications, such as fabric softeners, germicidal quaternary compounds, disinfectants, and lubricating ingredients.

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