Valvoline (NYSE:VVV) Earns Overweight Rating from Analysts at Stephens

Equities research analysts at Stephens began coverage on shares of Valvoline (NYSE:VVV) in a research note issued on Tuesday, Briefing.com reports. The brokerage set an “overweight” rating and a $49.00 price target on the basic materials company’s stock. Stephens’ price objective would suggest a potential upside of 18.87% from the stock’s previous close.

VVV has been the topic of several other reports. Citigroup increased their price objective on shares of Valvoline from $45.00 to $48.00 and gave the company a “neutral” rating in a report on Friday, July 19th. Royal Bank of Canada cut their price target on Valvoline from $54.00 to $48.00 and set an “outperform” rating on the stock in a research note on Thursday, August 8th. Robert W. Baird assumed coverage on Valvoline in a research note on Thursday, August 15th. They set an “outperform” rating and a $48.00 price objective for the company. Baird R W raised Valvoline to a “strong-buy” rating in a research note on Thursday, August 15th. Finally, Wells Fargo & Company decreased their target price on Valvoline from $50.00 to $46.00 and set an “overweight” rating for the company in a research report on Thursday, August 8th. Two equities research analysts have rated the stock with a hold rating, seven have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $47.75.

Valvoline Stock Up 1.2 %

NYSE VVV opened at $41.22 on Tuesday. The stock has a market capitalization of $5.31 billion, a P/E ratio of 32.71 and a beta of 1.45. Valvoline has a 52 week low of $29.15 and a 52 week high of $48.26. The company has a debt-to-equity ratio of 10.57, a quick ratio of 0.62 and a current ratio of 0.73. The stock has a fifty day moving average of $40.88 and a 200-day moving average of $42.14.

Valvoline (NYSE:VVV) last announced its quarterly earnings data on Wednesday, August 7th. The basic materials company reported $0.45 EPS for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.03). Valvoline had a return on equity of 182.88% and a net margin of 10.45%. The firm had revenue of $421.00 million during the quarter, compared to analyst estimates of $425.17 million. During the same quarter in the previous year, the business earned $0.43 earnings per share. Valvoline’s revenue for the quarter was up 11.9% compared to the same quarter last year. On average, equities research analysts forecast that Valvoline will post 1.53 EPS for the current year.

Valvoline announced that its board has initiated a share buyback plan on Tuesday, July 30th that allows the company to repurchase $400.00 million in outstanding shares. This repurchase authorization allows the basic materials company to purchase up to 7.6% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s leadership believes its shares are undervalued.

Institutional Investors Weigh In On Valvoline

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Wasatch Advisors LP grew its stake in Valvoline by 25.1% in the first quarter. Wasatch Advisors LP now owns 8,507,925 shares of the basic materials company’s stock valued at $379,198,000 after purchasing an additional 1,706,190 shares in the last quarter. Wellington Management Group LLP increased its stake in shares of Valvoline by 19,218.1% during the 4th quarter. Wellington Management Group LLP now owns 3,735,549 shares of the basic materials company’s stock worth $140,382,000 after purchasing an additional 3,716,212 shares during the last quarter. Congress Asset Management Co. MA raised its holdings in shares of Valvoline by 6.5% in the 1st quarter. Congress Asset Management Co. MA now owns 3,499,430 shares of the basic materials company’s stock valued at $155,970,000 after purchasing an additional 212,428 shares during the period. Dimensional Fund Advisors LP lifted its stake in Valvoline by 3.6% in the 2nd quarter. Dimensional Fund Advisors LP now owns 2,720,748 shares of the basic materials company’s stock valued at $117,534,000 after purchasing an additional 94,673 shares during the last quarter. Finally, Sculptor Capital LP grew its holdings in Valvoline by 187.6% during the second quarter. Sculptor Capital LP now owns 1,879,500 shares of the basic materials company’s stock worth $81,194,000 after purchasing an additional 1,226,000 shares during the period. 96.13% of the stock is owned by institutional investors.

About Valvoline

Valvoline Inc engages in the operation and franchising of vehicle service centers and retail stores in the United States and Canada. The company, through its service centers, provides fluid exchange for motor oil, transmission and differential fluid, and coolant; parts replacement for batteries, filters, wiper blades, and belts; and safety services, such as tire inflation and rotation, bulbs, and safety checks.