Stepan (NYSE:SCL) Lowered to Strong Sell Rating by Zacks Research

Zacks Research downgraded shares of Stepan (NYSE:SCL) from a hold rating to a strong sell rating in a report published on Wednesday morning,Zacks.com reports.

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

Stepan Trading Down 1.8%

NYSE:SCL traded down $0.90 during trading hours on Wednesday, hitting $47.94. The company had a trading volume of 23,153 shares, compared to its average volume of 195,964. Stepan has a 1 year low of $41.82 and a 1 year high of $68.00. The company has a market cap of $1.09 billion, a P/E ratio of 23.39 and a beta of 1.05. The company has a 50-day moving average of $55.25 and a 200 day moving average of $49.78. The company has a current ratio of 1.29, a quick ratio of 0.84 and a debt-to-equity ratio of 0.27.

Stepan (NYSE:SCL) last announced its quarterly earnings data on Monday, February 23rd. The basic materials company reported ($0.02) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.35 by ($0.37). Stepan had a net margin of 2.01% and a return on equity of 3.38%. The firm had revenue of $553.89 million during the quarter, compared to analysts’ expectations of $570.60 million. During the same period in the prior year, the company posted $0.12 EPS. The company’s revenue for the quarter was up 5.4% compared to the same quarter last year. Sell-side analysts expect that Stepan will post 3.55 earnings per share for the current year.

Stepan Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 13th. Shareholders of record on Monday, March 2nd will be paid a dividend of $0.395 per share. The ex-dividend date is Monday, March 2nd. This represents a $1.58 dividend on an annualized basis and a yield of 3.3%. Stepan’s dividend payout ratio is 77.07%.

Hedge Funds Weigh In On Stepan

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SCL. 1620 Investment Advisors Inc. raised its stake in shares of Stepan by 86.9% in the fourth quarter. 1620 Investment Advisors Inc. now owns 570 shares of the basic materials company’s stock valued at $27,000 after acquiring an additional 265 shares in the last quarter. EverSource Wealth Advisors LLC grew its position in shares of Stepan by 206.5% during the second quarter. EverSource Wealth Advisors LLC now owns 521 shares of the basic materials company’s stock worth $28,000 after buying an additional 351 shares in the last quarter. Financial Consulate Inc. acquired a new position in shares of Stepan during the third quarter worth about $30,000. Parallel Advisors LLC raised its holdings in Stepan by 700.0% in the fourth quarter. Parallel Advisors LLC now owns 688 shares of the basic materials company’s stock valued at $33,000 after acquiring an additional 602 shares in the last quarter. Finally, Quarry LP purchased a new position in Stepan in the third quarter worth approximately $34,000. Hedge funds and other institutional investors own 82.70% of the company’s stock.

Stepan Company Profile

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.