Stepan (NYSE:SCL) Shares Up 6.8% Following Strong Earnings

Stepan (NYSE:SCL) rose 6.8% on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $78.59 and last traded at $77.93. Approximately 4,206 shares changed hands during trading, a decline of 95% from the average daily volume of 90,963 shares. The stock had previously closed at $72.96.

The basic materials company reported $1.03 EPS for the quarter, topping analysts’ consensus estimates of $0.64 by $0.39. Stepan had a return on equity of 4.56% and a net margin of 2.10%. The business had revenue of $546.84 million for the quarter, compared to analysts’ expectations of $577.23 million. During the same quarter in the previous year, the firm earned $0.64 earnings per share. The business’s revenue was down 2.7% compared to the same quarter last year.

Stepan Increases Dividend

The firm 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 $0.385 dividend. This is a boost from Stepan’s previous quarterly dividend of $0.38. This represents a $1.54 annualized dividend and a dividend yield of 2.13%. The ex-dividend date is Friday, November 29th. Stepan’s dividend payout ratio (DPR) is currently 74.63%.

Analyst Upgrades and Downgrades

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

Insider Activity

In other news, VP David Kabbes acquired 1,056 shares of the company’s stock in a transaction dated Wednesday, August 14th. The shares were bought at an average price of $71.39 per share, for a total transaction of $75,387.84. Following the completion of the purchase, the vice president now directly owns 1,056 shares of the company’s stock, valued at approximately $75,387.84. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 6.90% of the company’s stock.

Hedge Funds Weigh In On Stepan

Hedge funds and other institutional investors have recently modified their holdings of the company. Quest Partners LLC lifted its holdings in shares of Stepan by 3,053.3% in the second quarter. Quest Partners LLC now owns 473 shares of the basic materials company’s stock valued at $40,000 after buying an additional 458 shares during the period. Copeland Capital Management LLC bought a new position in shares of Stepan in the 3rd quarter valued at approximately $48,000. Innealta Capital LLC acquired a new position in shares of Stepan during the 2nd quarter worth about $59,000. Adirondack Trust Co. increased its holdings 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 worth $67,000 after purchasing an additional 300 shares during the period. Finally, 1620 Investment Advisors Inc. acquired a new stake in shares of Stepan during the 2nd quarter valued at about $123,000. Institutional investors and hedge funds own 82.70% of the company’s stock.

Stepan Stock Down 2.7 %

The firm’s fifty day moving average is $75.21 and its 200-day moving average is $80.85. The company has a current ratio of 1.27, a quick ratio of 0.92 and a debt-to-equity ratio of 0.29. The stock has a market capitalization of $1.63 billion, a P/E ratio of 36.03 and a beta of 0.80.

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.