Stepan (NYSE:SCL) Stock Price Up 6.8% on Better-Than-Expected Earnings

Shares of Stepan (NYSE:SCL) were up 6.8% during trading on Wednesday following a stronger than expected earnings report. The company traded as high as $78.59 and last traded at $77.93. Approximately 4,206 shares changed hands during mid-day trading, a decline of 95% from the average daily volume of 90,963 shares. The stock had previously closed at $72.96.

The basic materials company reported $1.03 earnings per share for the quarter, beating the consensus estimate of $0.64 by $0.39. The business had revenue of $546.84 million during the quarter, compared to analysts’ expectations of $577.23 million. Stepan had a net margin of 2.10% and a return on equity of 4.56%. The firm’s revenue for the quarter was down 2.7% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.64 EPS.

Stepan Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 13th. Investors of record on Friday, November 29th will be paid a dividend of $0.385 per share. The ex-dividend date of this dividend is Friday, November 29th. This represents a $1.54 annualized dividend and a yield of 2.13%. This is a positive change from Stepan’s previous quarterly dividend of $0.38. Stepan’s payout ratio is presently 74.63%.

Wall Street Analyst Weigh In

Separately, StockNews.com downgraded Stepan from a “buy” rating to a “hold” rating in a research note on Sunday, July 28th.

Insider Transactions at Stepan

In related news, VP David Kabbes bought 1,056 shares of the business’s stock in a transaction dated Wednesday, August 14th. The shares were purchased at an average price of $71.39 per share, with a total value of $75,387.84. Following the transaction, the vice president now owns 1,056 shares in the company, valued at $75,387.84. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders own 6.90% of the company’s stock.

Institutional Trading of Stepan

A number of institutional investors have recently modified their holdings of SCL. Nisa Investment Advisors LLC grew its position in Stepan by 2.3% during the 2nd quarter. Nisa Investment Advisors LLC now owns 8,541 shares of the basic materials company’s stock worth $717,000 after purchasing an additional 192 shares during the period. Louisiana State Employees Retirement System raised its holdings in Stepan by 1.9% in the 2nd quarter. Louisiana State Employees Retirement System now owns 10,700 shares of the basic materials company’s stock valued at $898,000 after acquiring an additional 200 shares during the last quarter. Inspire Investing LLC lifted its position in Stepan by 5.6% during the second quarter. Inspire Investing LLC now owns 4,210 shares of the basic materials company’s stock worth $353,000 after buying an additional 223 shares in the last quarter. Texas Permanent School Fund Corp increased its holdings in shares of Stepan by 1.3% during the 1st quarter. Texas Permanent School Fund Corp now owns 18,597 shares of the basic materials company’s stock worth $1,674,000 after buying an additional 242 shares during the last quarter. Finally, CWM LLC increased its position in shares of Stepan by 2.8% during the 3rd quarter. CWM LLC now owns 10,500 shares of the basic materials company’s stock worth $811,000 after purchasing an additional 287 shares during the last quarter. 82.70% of the stock is currently owned by institutional investors.

Stepan Trading Down 2.7 %

The business’s 50-day simple moving average is $75.21 and its two-hundred day simple moving average is $80.85. The firm has a market capitalization of $1.63 billion, a price-to-earnings ratio of 36.03 and a beta of 0.80. The company has a quick ratio of 0.92, a current ratio of 1.27 and a debt-to-equity ratio of 0.29.

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.