Valvoline (NYSE:VVV) Trading 8.6% Higher After Earnings Beat

Valvoline (NYSE:VVV)’s share price rose 8.6% during mid-day trading on Wednesday following a better than expected earnings announcement. The company traded as high as $36.38 and last traded at $36.1450. Approximately 979,961 shares traded hands during trading, a decline of 50% from the average daily volume of 1,965,430 shares. The stock had previously closed at $33.29.

The basic materials company reported $0.37 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.03. Valvoline had a return on equity of 72.49% and a net margin of 12.32%.The firm had revenue of $461.80 million for the quarter, compared to analysts’ expectations of $466.87 million. During the same quarter last year, the firm posted $0.32 EPS. The company’s revenue was up 11.5% compared to the same quarter last year.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on the company. Roth Mkm began coverage on Valvoline in a research note on Wednesday, December 17th. They set a “buy” rating and a $42.00 price objective on the stock. Robert W. Baird lowered their price objective on Valvoline from $44.00 to $40.00 and set an “outperform” rating for the company in a research report on Thursday, November 20th. Stifel Nicolaus cut their target price on shares of Valvoline from $42.00 to $35.00 and set a “hold” rating on the stock in a report on Thursday, November 20th. Jefferies Financial Group began coverage on shares of Valvoline in a report on Wednesday, December 17th. They set a “buy” rating and a $40.00 price target for the company. Finally, Zacks Research raised shares of Valvoline from a “strong sell” rating to a “hold” rating in a research note on Monday, January 19th. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat, Valvoline presently has a consensus rating of “Moderate Buy” and an average price target of $38.81.

Insiders Place Their Bets

In other news, insider Julie Marie O’daniel sold 3,200 shares of the company’s stock in a transaction dated Wednesday, November 26th. The shares were sold at an average price of $31.88, for a total value of $102,016.00. Following the sale, the insider directly owned 17,251 shares of the company’s stock, valued at $549,961.88. This represents a 15.65% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Lori Ann Flees purchased 4,500 shares of the firm’s stock in a transaction that occurred on Monday, November 24th. The stock was acquired at an average price of $30.82 per share, with a total value of $138,690.00. Following the completion of the purchase, the chief executive officer owned 69,267 shares in the company, valued at $2,134,808.94. This represents a 6.95% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders own 0.66% of the company’s stock.

Hedge Funds Weigh In On Valvoline

Several large investors have recently modified their holdings of the stock. Cooke & Bieler LP bought a new position in shares of Valvoline in the second quarter worth approximately $110,501,000. Boston Partners boosted its stake in Valvoline by 67.3% during the 2nd quarter. Boston Partners now owns 3,977,293 shares of the basic materials company’s stock valued at $150,604,000 after purchasing an additional 1,599,973 shares during the last quarter. Norges Bank bought a new stake in Valvoline in the 2nd quarter worth about $57,739,000. Mawer Investment Management Ltd. raised its holdings in shares of Valvoline by 118.8% during the second quarter. Mawer Investment Management Ltd. now owns 2,678,878 shares of the basic materials company’s stock valued at $101,449,000 after purchasing an additional 1,454,458 shares during the last quarter. Finally, Channing Capital Management LLC boosted its holdings in Valvoline by 189.8% in the second quarter. Channing Capital Management LLC now owns 2,163,631 shares of the basic materials company’s stock worth $81,937,000 after purchasing an additional 1,417,156 shares during the last quarter. Hedge funds and other institutional investors own 96.13% of the company’s stock.

Valvoline Stock Up 7.7%

The company has a market cap of $4.56 billion, a P/E ratio of 21.84 and a beta of 1.19. The company has a quick ratio of 0.58, a current ratio of 0.70 and a debt-to-equity ratio of 3.10. The company has a fifty day moving average of $31.07 and a 200 day moving average of $34.26.

About Valvoline

Valvoline (NYSE: VVV) is a leading global producer and distributor of automotive and industrial lubricants. The company’s portfolio spans engine oils, gear oils, transmission fluids, greases, coolants and driveline products, all designed to help improve vehicle performance and longevity. Valvoline’s products are marketed under the Valvoline®, Valvoline NextGen® and Valvoline™ SynPower® brand names and are formulated to meet the stringent requirements of passenger cars, light trucks, heavy‐duty vehicles and off‐road applications.

In addition to its core lubricant business, Valvoline operates one of North America’s largest quick‐lubricant service networks through Valvoline Instant Oil Change℠ (VIOC).