Stepan (NYSE:SCL) Upgraded at Zacks Research

Key Points

• Stepan has been upgraded from a "strong sell" rating to a "hold" rating by Zacks Research, signaling a potential change in investor outlook.
• Despite the Zacks upgrade, Weiss Ratings downgraded the stock from "hold" to "sell," contributing to a mixed rating environment with an average rating of "Reduce."
• Stepan reported a missed earnings estimate in its last quarter, with an EPS of $0.52 compared to the consensus estimate of $0.92, reflecting challenges in its financial performance.

Stepan (NYSE:SCL - Get Free Report) was upgraded by equities researchers at Zacks Research from a "strong sell" rating to a "hold" rating in a report issued on Monday,Zacks.com reports.

Other research analysts have also issued research reports about the stock. Weiss Ratings lowered shares of Stepan from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, October 8th. Wall Street Zen lowered shares of Stepan from a "buy" rating to a "hold" rating in a research report on Saturday, August 2nd. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Reduce".

Stepan Price Performance

Shares of NYSE:SCL opened at $47.02 on Monday. Stepan has a 12 month low of $44.23 and a 12 month high of $82.08. The stock has a market cap of $1.06 billion, a price-to-earnings ratio of 18.51 and a beta of 0.96. The stock's 50 day moving average price is $48.95 and its 200 day moving average price is $52.03. The company has a debt-to-equity ratio of 0.31, a current ratio of 1.35 and a quick ratio of 0.86.

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

Hedge Funds Weigh In On Stepan

A number of hedge funds have recently modified their holdings of the stock. O Keefe Stevens Advisory Inc. increased its stake in shares of Stepan by 5.8% in the third quarter. O Keefe Stevens Advisory Inc. now owns 77,518 shares of the basic materials company's stock worth $3,698,000 after acquiring an additional 4,229 shares during the last quarter. Assenagon Asset Management S.A. acquired a new position in shares of Stepan in the third quarter worth $207,000. Corient Private Wealth LLC acquired a new position in shares of Stepan in the second quarter worth $248,000. Westwood Holdings Group Inc. increased its stake in shares of Stepan by 6.7% in the second quarter. Westwood Holdings Group Inc. now owns 1,336,855 shares of the basic materials company's stock worth $72,966,000 after acquiring an additional 83,941 shares during the last quarter. Finally, Public Sector Pension Investment Board increased its stake in shares of Stepan by 7.8% in the second quarter. Public Sector Pension Investment Board now owns 72,307 shares of the basic materials company's stock worth $3,947,000 after acquiring an additional 5,249 shares during the last quarter. 82.70% of the stock is owned by institutional investors and hedge funds.

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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