Stepan (NYSE:SCL) Shares Gap Up After Strong Earnings

Stepan (NYSE:SCL)’s share price gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $84.53, but opened at $87.16. Stepan shares last traded at $86.70, with a volume of 17,754 shares.

The basic materials company reported $0.64 EPS for the quarter, beating the consensus estimate of $0.35 by $0.29. The business had revenue of $551.40 million during the quarter, compared to analysts’ expectations of $575.83 million. Stepan had a net margin of 1.71% and a return on equity of 4.04%. The business’s quarterly revenue was down 15.4% compared to the same quarter last year. During the same period in the previous year, the business posted $0.71 EPS.

Stepan Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 14th. Stockholders of record on Friday, May 31st will be paid a $0.375 dividend. The ex-dividend date is Friday, May 31st. This represents a $1.50 dividend on an annualized basis and a dividend yield of 1.79%. Stepan’s payout ratio is 90.36%.

Analyst Ratings Changes

Separately, StockNews.com raised shares of Stepan from a “sell” rating to a “hold” rating in a research note on Tuesday, March 26th.

Insider Activity at Stepan

In other Stepan news, Director F Quinn Stepan, Jr. sold 5,000 shares of the stock in a transaction that occurred on Friday, February 23rd. The stock was sold at an average price of $91.07, for a total transaction of $455,350.00. Following the transaction, the director now owns 255,567 shares in the company, valued at $23,274,486.69. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In other news, Director F Quinn Stepan, Jr. sold 2,000 shares of Stepan stock in a transaction dated Thursday, March 7th. The shares were sold at an average price of $87.43, for a total value of $174,860.00. Following the sale, the director now owns 250,676 shares in the company, valued at $21,916,602.68. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director F Quinn Stepan, Jr. sold 5,000 shares of the business’s stock in a transaction dated Friday, February 23rd. The stock was sold at an average price of $91.07, for a total transaction of $455,350.00. Following the sale, the director now directly owns 255,567 shares of the company’s stock, valued at approximately $23,274,486.69. The disclosure for this sale can be found here. Insiders sold a total of 10,637 shares of company stock worth $957,940 in the last 90 days. Corporate insiders own 6.90% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Fifth Third Bancorp increased its stake in Stepan by 2,141.7% during the 4th quarter. Fifth Third Bancorp now owns 269 shares of the basic materials company’s stock worth $25,000 after buying an additional 257 shares in the last quarter. Global Retirement Partners LLC acquired a new position in Stepan during the first quarter worth about $36,000. Copeland Capital Management LLC boosted its position in Stepan by 277.5% during the fourth quarter. Copeland Capital Management LLC now owns 453 shares of the basic materials company’s stock worth $43,000 after acquiring an additional 333 shares during the last quarter. Adirondack Trust Co. purchased a new stake in Stepan during the 3rd quarter valued at about $37,000. Finally, Exchange Traded Concepts LLC acquired a new stake in Stepan in the 4th quarter valued at about $48,000. 82.70% of the stock is owned by hedge funds and other institutional investors.

Stepan Price Performance

The company has a debt-to-equity ratio of 0.33, a quick ratio of 0.96 and a current ratio of 1.38. The stock’s 50 day simple moving average is $86.98 and its two-hundred day simple moving average is $86.14. The firm has a market capitalization of $1.89 billion, a PE ratio of 50.57 and a beta of 0.84.

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.