Stepan (NYSE:SCL) Upgraded by StockNews.com to Buy Rating

StockNews.com upgraded shares of Stepan (NYSE:SCL) from a hold rating to a buy rating in a research note published on Friday morning.

Stepan Stock Up 0.8 %

NYSE SCL traded up $0.55 during midday trading on Friday, hitting $72.89. 155,256 shares of the company traded hands, compared to its average volume of 89,245. Stepan has a 52 week low of $69.78 and a 52 week high of $96.68. The company’s 50-day simple moving average is $75.08 and its 200-day simple moving average is $80.72. The company has a market cap of $1.64 billion, a PE ratio of 36.25 and a beta of 0.81. The company has a debt-to-equity ratio of 0.29, a current ratio of 1.27 and a quick ratio of 0.92.

Stepan (NYSE:SCL) last announced its quarterly earnings data on Wednesday, October 30th. The basic materials company reported $1.03 EPS for the quarter, beating the consensus estimate of $0.64 by $0.39. Stepan had a net margin of 2.10% and a return on equity of 4.56%. The business had revenue of $546.84 million during the quarter, compared to analysts’ expectations of $577.23 million. During the same period in the previous year, the business posted $0.64 EPS. The business’s quarterly revenue was down 2.7% compared to the same quarter last year. As a group, equities research analysts forecast that Stepan will post 2.09 earnings per share for the current year.

Stepan Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, December 13th. Stockholders of record on Friday, November 29th will be issued a dividend of $0.385 per share. This represents a $1.54 annualized dividend and a dividend yield of 2.11%. The ex-dividend date is Friday, November 29th. This is a positive change from Stepan’s previous quarterly dividend of $0.38. Stepan’s payout ratio is currently 74.63%.

Insider Buying and Selling at Stepan

In related news, VP David Kabbes acquired 1,056 shares of the firm’s stock in a transaction dated Wednesday, August 14th. The stock was acquired at an average price of $71.39 per share, for a total transaction of $75,387.84. Following the purchase, the vice president now owns 1,056 shares of the company’s stock, valued at $75,387.84. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 6.90% of the stock is owned by corporate insiders.

Institutional Trading of Stepan

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Quest Partners LLC grew its holdings in shares of Stepan by 3,053.3% in the 2nd quarter. Quest Partners LLC now owns 473 shares of the basic materials company’s stock worth $40,000 after acquiring an additional 458 shares during the period. Copeland Capital Management LLC acquired a new position in Stepan during the 3rd quarter worth $48,000. Innealta Capital LLC acquired a new stake in shares of Stepan in the second quarter valued at $59,000. Adirondack Trust Co. lifted its position in shares of Stepan by 60.0% during the 2nd quarter. Adirondack Trust Co. now owns 800 shares of the basic materials company’s stock valued at $67,000 after acquiring an additional 300 shares during the last quarter. Finally, 1620 Investment Advisors Inc. purchased a new position in Stepan in the 2nd quarter worth about $123,000. 82.70% of the stock is owned by hedge funds and other institutional investors.

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.