Wall Street Zen Upgrades Stepan (NYSE:SCL) to Buy

Key Points

• Wall Street Zen upgraded Stepan from “hold” to “buy,” though MarketBeat’s overall analyst consensus remains “Reduce,” with other recent ratings ranging from hold to sell and a buy price target of $85.
• Stepan reported quarterly EPS of $1.18, beating the $0.61 consensus estimate, while revenue of $684.1 million exceeded expectations and increased 15% year over year.
• Shares rose 1.8% to $65.14, near the company’s 52-week high, and institutional investors own 82.7% of the stock after several major investors increased their positions.

Stepan (NYSE:SCL - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "hold" rating to a "buy" rating in a report issued on Saturday.

SCL has been the subject of a number of other research reports. Zacks Research raised Stepan from a "strong sell" rating to a "hold" rating in a report on Monday, July 6th. Seaport Research Partners reaffirmed a "buy" rating and issued a $85.00 price objective on shares of Stepan in a research note on Friday. Finally, Weiss Ratings upgraded Stepan from a "sell (d)" rating to a "sell (d+)" rating in a research report on Wednesday, July 29th. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Reduce".

Stepan Stock Up 1.8%

Shares of SCL opened at $65.14 on Friday. Stepan has a one year low of $41.82 and a one year high of $68.00. The company has a market cap of $1.48 billion, a P/E ratio of -542.86 and a beta of 0.94. The company has a debt-to-equity ratio of 0.20, a current ratio of 1.15 and a quick ratio of 0.86. The firm has a 50 day simple moving average of $56.77 and a two-hundred day simple moving average of $54.33.

Stepan (NYSE:SCL - Get Free Report) last released its earnings results on Wednesday, July 29th. The basic materials company reported $1.18 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.57. The firm had revenue of $684.11 million during the quarter, compared to analysts' expectations of $635.85 million. Stepan had a positive return on equity of 3.90% and a negative net margin of 0.11%.The company's quarterly revenue was up 15.0% on a year-over-year basis. During the same period in the prior year, the company earned $0.52 earnings per share. Research analysts forecast that Stepan will post 2.54 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Deprince Race & Zollo Inc. grew its holdings in shares of Stepan by 5.2% during the first quarter. Deprince Race & Zollo Inc. now owns 947,452 shares of the basic materials company's stock worth $47,354,000 after purchasing an additional 47,075 shares during the last quarter. North Star Investment Management Corp. bought a new position in Stepan in the 1st quarter valued at approximately $850,000. Empowered Funds LLC raised its holdings in Stepan by 124.8% in the 1st quarter. Empowered Funds LLC now owns 174,376 shares of the basic materials company's stock valued at $8,715,000 after buying an additional 96,823 shares during the last quarter. Horizon Investments LLC acquired a new stake in Stepan during the 4th quarter worth approximately $623,000. Finally, First Trust Advisors LP boosted its position in Stepan by 11.2% during the 1st quarter. First Trust Advisors LP now owns 94,340 shares of the basic materials company's stock worth $4,715,000 after buying an additional 9,534 shares during the period. 82.70% of the stock is currently owned by institutional investors.

About Stepan

Stepan Company is a global manufacturer of specialty and intermediate chemicals, primarily known for its development and production of surfactants and related specialty products. The company's portfolio includes a wide range of ingredients used to enhance the performance of consumer and industrial formulations, such as emulsifiers, foam control agents, odor control agents, antimicrobial products and performance additives. These products are integral components in cleaning solutions, personal care items, agrochemical formulations, coatings, oilfield treatments and polymer systems.

Serving a diverse set of end-markets, Stepan's offerings address both consumer-facing and industrial applications.

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