Stepan (NYSE:SCL) Shares Gap Down on Disappointing Earnings

Stepan (NYSE:SCL)’s share price gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $90.03, but opened at $84.58. Stepan shares last traded at $87.09, with a volume of 6,597 shares.

The basic materials company reported $0.41 earnings per share for the quarter, missing analysts’ consensus estimates of $0.67 by ($0.26). The company had revenue of $556.41 million for the quarter, compared to the consensus estimate of $581.30 million. Stepan had a net margin of 1.58% and a return on equity of 3.82%. The business’s revenue was down 4.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.53 earnings per share.

Stepan Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 13th. Shareholders of record on Friday, August 30th will be given a $0.375 dividend. The ex-dividend date is Friday, August 30th. This represents a $1.50 annualized dividend and a yield of 1.93%. Stepan’s dividend payout ratio is presently 90.36%.

Analysts Set New Price Targets

Separately, StockNews.com lowered Stepan from a “buy” rating to a “hold” rating in a report on Sunday, July 28th.

Hedge Funds Weigh In On Stepan

Hedge funds have recently made changes to their positions in the stock. Russell Investments Group Ltd. lifted its holdings in shares of Stepan by 30.7% during the 4th quarter. Russell Investments Group Ltd. now owns 105,217 shares of the basic materials company’s stock worth $9,948,000 after acquiring an additional 24,721 shares during the last quarter. US Bancorp DE grew its holdings in Stepan by 229.9% in the fourth quarter. US Bancorp DE now owns 12,728 shares of the basic materials company’s stock worth $1,203,000 after purchasing an additional 8,870 shares during the period. Everence Capital Management Inc. purchased a new stake in Stepan in the fourth quarter worth about $258,000. Dimensional Fund Advisors LP grew its holdings in Stepan by 2.7% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,201,133 shares of the basic materials company’s stock worth $113,568,000 after purchasing an additional 31,641 shares during the period. Finally, Norges Bank purchased a new stake in Stepan in the fourth quarter worth about $12,869,000. 82.70% of the stock is currently owned by hedge funds and other institutional investors.

Stepan Trading Down 3.0 %

The firm’s 50 day moving average price is $85.77 and its 200-day moving average price is $87.31. The stock has a market cap of $1.75 billion, a P/E ratio of 48.16 and a beta of 0.81. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.38 and a quick ratio of 0.97.

Stepan Company Profile

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.