Valvoline (NYSE:VVV) Downgraded to "Sell" Rating by Wall Street Zen

Key Points

• Valvoline has been downgraded from "hold" to "sell" by Wall Street Zen following a new report issued over the weekend.
• Despite the downgrade, several brokerages, including Goldman Sachs and Wells Fargo, have raised their target prices for Valvoline, indicating mixed sentiment among analysts.
• Valvoline reported a quarterly EPS of $0.47, slightly beating analyst estimates, and achieved a revenue of $439 million, marking a 4.2% increase year-over-year.

Wall Street Zen cut shares of Valvoline (NYSE:VVV - Free Report) from a hold rating to a sell rating in a report issued on Sunday.

VVV has been the subject of a number of other research reports. The Goldman Sachs Group upgraded shares of Valvoline from a "hold" rating to a "buy" rating and increased their price target for the stock from $40.00 to $45.00 in a research note on Tuesday, June 3rd. Cfra Research upgraded shares of Valvoline to a "hold" rating in a research report on Monday, July 7th. Stephens raised their target price on shares of Valvoline from $40.00 to $44.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 29th. Zacks Research upgraded shares of Valvoline to a "hold" rating in a research note on Tuesday, August 12th. Finally, Wells Fargo & Company raised their target price on shares of Valvoline from $42.00 to $44.00 and gave the stock an "overweight" rating in a research note on Thursday, August 7th. Nine analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $42.77.

Valvoline Stock Performance

NYSE:VVV traded down $0.08 during trading hours on Friday, reaching $40.47. 1,224,422 shares of the company's stock were exchanged, compared to its average volume of 1,432,092. The firm has a market capitalization of $5.14 billion, a price-to-earnings ratio of 18.82 and a beta of 1.21. The company has a 50-day moving average of $38.12 and a 200 day moving average of $36.22. The company has a quick ratio of 0.60, a current ratio of 0.73 and a debt-to-equity ratio of 3.37. Valvoline has a 1-year low of $31.01 and a 1-year high of $43.74.

Valvoline (NYSE:VVV - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The basic materials company reported $0.47 earnings per share for the quarter, topping analysts' consensus estimates 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 net margin of 16.43% and a return on equity of 84.85%. Valvoline's quarterly revenue was up 4.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.45 EPS. Research analysts anticipate that Valvoline will post 1.63 EPS for the current year.

Insider Activity

In related news, CFO J Kevin Willis purchased 12,725 shares of the business's stock in a transaction dated Thursday, August 14th. The stock was acquired at an average price of $39.41 per share, for a total transaction of $501,492.25. Following the acquisition, the chief financial officer directly owned 12,725 shares of the company's stock, valued at $501,492.25. This trade represents a ∞ increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.66% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Valvoline

Large investors have recently made changes to their positions in the stock. Cooke & Bieler LP purchased a new position in Valvoline during the 2nd quarter valued at about $110,501,000. Boston Partners purchased a new stake in shares of Valvoline during the first quarter worth about $82,748,000. Norges Bank purchased a new stake in shares of Valvoline during the second quarter worth about $57,739,000. Mawer Investment Management Ltd. grew its holdings in shares of Valvoline by 118.8% during the second quarter. Mawer Investment Management Ltd. now owns 2,678,878 shares of the basic materials company's stock worth $101,449,000 after buying an additional 1,454,458 shares in the last quarter. Finally, Channing Capital Management LLC grew its holdings in shares of Valvoline by 189.8% during the second quarter. Channing Capital Management LLC now owns 2,163,631 shares of the basic materials company's stock worth $81,937,000 after buying an additional 1,417,156 shares in the last quarter. Hedge funds and other institutional investors 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.