Stepan (NYSE:SCL) Cut to Strong Sell at Zacks Research

Zacks Research lowered shares of Stepan (NYSE:SCL) from a hold rating to a strong sell rating in a research report sent to investors on Wednesday,Zacks.com reports.

Separately, Weiss Ratings cut shares of Stepan from a “hold (c-)” rating to a “sell (d+)” rating in a report on Wednesday. Two equities research analysts have rated the stock with a Sell rating, According to MarketBeat.com, the stock presently has an average rating of “Sell”.

Stepan Trading Down 1.6%

Shares of Stepan stock opened at $48.05 on Wednesday. The business has a fifty day simple moving average of $55.27 and a 200-day simple moving average of $49.78. Stepan has a fifty-two week low of $41.82 and a fifty-two week high of $68.00. The firm has a market cap of $1.09 billion, a price-to-earnings ratio of 23.44 and a beta of 1.05. The company has a quick ratio of 0.84, a current ratio of 1.29 and a debt-to-equity ratio of 0.27.

Stepan (NYSE:SCL) last issued its quarterly earnings results on Monday, February 23rd. The basic materials company reported ($0.02) EPS for the quarter, missing the consensus estimate of $0.35 by ($0.37). Stepan had a return on equity of 3.38% and a net margin of 2.01%.The business had revenue of $553.89 million during the quarter, compared to the consensus estimate of $570.60 million. During the same quarter last year, the firm posted $0.12 earnings per share. Stepan’s revenue was up 5.4% compared to the same quarter last year. On average, equities analysts forecast that Stepan will post 3.55 EPS for the current fiscal year.

Stepan Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 13th. Investors of record on Monday, March 2nd will be issued a dividend of $0.395 per share. This represents a $1.58 annualized dividend and a dividend yield of 3.3%. The ex-dividend date is Monday, March 2nd. Stepan’s dividend payout ratio (DPR) is currently 77.07%.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. EverSource Wealth Advisors LLC grew its stake in shares of Stepan by 206.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 521 shares of the basic materials company’s stock valued at $28,000 after buying an additional 351 shares in the last quarter. 1620 Investment Advisors Inc. grew its position in Stepan by 86.9% in the fourth quarter. 1620 Investment Advisors Inc. now owns 570 shares of the basic materials company’s stock worth $27,000 after acquiring an additional 265 shares in the last quarter. Financial Consulate Inc. bought a new position in shares of Stepan during the 3rd quarter valued at $30,000. Parallel Advisors LLC lifted its stake in shares of Stepan by 700.0% in the 4th quarter. Parallel Advisors LLC now owns 688 shares of the basic materials company’s stock valued at $33,000 after purchasing an additional 602 shares during the last quarter. Finally, Quarry LP bought a new stake in Stepan in the third quarter worth $34,000. 82.70% of the stock is owned by institutional investors and hedge funds.

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.