Stephens Forecasts Strong Price Appreciation for Valvoline (NYSE:VVV) Stock

Key Points

• Valvoline's price target was raised by Stephens from $40.00 to $44.00, indicating a potential upside of 22.91% from the company's previous close.
• The company reported a net margin of 15.97% and a return on equity of 106.36%, while revenue increased by 3.7% compared to the same quarter last year.
• NYSE:VVV has received mixed ratings from analysts, with a consensus rating of Moderate Buy and a consensus price target of $42.15.

Valvoline (NYSE:VVV - Free Report) had its target price hoisted by Stephens from $40.00 to $44.00 in a research note published on Tuesday morning,Benzinga reports. The firm currently has an overweight rating on the basic materials company's stock.

A number of other equities research analysts have also weighed in on VVV. TD Securities initiated coverage on Valvoline in a research note on Friday, April 4th. They issued a "buy" rating and a $40.00 target price for the company. The Goldman Sachs Group raised Valvoline from a "hold" rating to a "buy" rating and boosted their target price for the company from $40.00 to $45.00 in a research note on Tuesday, June 3rd. Cfra Research raised Valvoline to a "hold" rating in a research note on Monday, July 7th. Piper Sandler reissued an "overweight" rating and issued a $44.00 target price (down previously from $45.00) on shares of Valvoline in a research note on Friday, May 9th. Finally, Citigroup lowered their price target on Valvoline from $41.00 to $38.00 and set a "neutral" rating for the company in a research report on Tuesday, April 29th. Five analysts have rated the stock with a hold rating, nine have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $42.15.

Valvoline Price Performance

Shares of VVV traded down $0.23 during midday trading on Tuesday, reaching $35.02. The stock had a trading volume of 1,727,334 shares, compared to its average volume of 1,728,139. The company's 50-day moving average is $36.71 and its 200 day moving average is $35.97. Valvoline has a 12-month low of $31.01 and a 12-month high of $45.28. The company has a current ratio of 0.73, a quick ratio of 0.60 and a debt-to-equity ratio of 4.23. The company has a market capitalization of $4.45 billion, a price-to-earnings ratio of 17.00 and a beta of 1.17.

Valvoline (NYSE:VVV - Get Free Report) last posted its quarterly earnings data on Thursday, May 8th. The basic materials company reported $0.34 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.36 by ($0.02). Valvoline had a return on equity of 106.36% and a net margin of 15.97%. The firm had revenue of $403.20 million during the quarter, compared to analysts' expectations of $405.38 million. During the same quarter in the previous year, the company posted $0.37 earnings per share. Valvoline's revenue for the quarter was up 3.7% compared to the same quarter last year. On average, equities analysts predict that Valvoline will post 1.63 EPS for the current fiscal year.

Insider Buying and Selling at Valvoline

In other Valvoline news, CEO Lori Ann Flees acquired 3,000 shares of Valvoline stock in a transaction that occurred on Tuesday, May 27th. The stock was bought at an average price of $33.78 per share, with a total value of $101,340.00. Following the completion of the purchase, the chief executive officer directly owned 46,614 shares of the company's stock, valued at approximately $1,574,620.92. This represents a 6.88% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.66% of the company's stock.

Hedge Funds Weigh In On Valvoline

Large investors have recently made changes to their positions in the business. Boston Partners purchased a new stake in shares of Valvoline during the first quarter valued at $82,748,000. Norges Bank purchased a new stake in Valvoline in the fourth quarter valued at $54,114,000. Millennium Management LLC boosted its holdings in Valvoline by 315.4% in the first quarter. Millennium Management LLC now owns 1,510,338 shares of the basic materials company's stock valued at $52,575,000 after purchasing an additional 1,146,728 shares during the last quarter. Fiduciary Management Inc. WI boosted its holdings in Valvoline by 35.1% in the fourth quarter. Fiduciary Management Inc. WI now owns 4,221,275 shares of the basic materials company's stock valued at $152,726,000 after purchasing an additional 1,096,486 shares during the last quarter. Finally, Wasatch Advisors LP boosted its holdings in Valvoline by 11.1% in the fourth quarter. Wasatch Advisors LP now owns 10,818,256 shares of the basic materials company's stock valued at $391,405,000 after purchasing an additional 1,080,114 shares during the last quarter. 96.13% of the stock is owned by institutional investors and hedge funds.

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.