Stepan (NYSE:SCL) Trading 6.8% Higher – Should You Buy?

Shares of Stepan (NYSE:SCL) shot up 6.8% on Wednesday . The company traded as high as $78.59 and last traded at $77.93. 4,206 shares changed hands during trading, a decline of 95% from the average session volume of 90,963 shares. The stock had previously closed at $72.96.

Analyst Upgrades and Downgrades

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

Stepan Stock Up 2.3 %

The company has a quick ratio of 0.92, a current ratio of 1.32 and a debt-to-equity ratio of 0.31. The company has a fifty day moving average price of $75.24 and a 200-day moving average price of $80.90. The stock has a market capitalization of $1.68 billion, a P/E ratio of 47.65 and a beta of 0.80.

Stepan (NYSE:SCL) last announced its earnings results on Wednesday, July 31st. The basic materials company reported $0.41 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.67 by ($0.26). Stepan had a net margin of 1.58% and a return on equity of 3.83%. The business had revenue of $556.41 million for the quarter, compared to analysts’ expectations of $581.30 million. During the same quarter last year, the firm earned $0.53 EPS. The firm’s quarterly revenue was down 4.1% on a year-over-year basis. As a group, research analysts forecast that Stepan will post 2.09 EPS for the current fiscal year.

Insider Activity at Stepan

In other Stepan news, VP David Kabbes purchased 1,056 shares of Stepan stock in a transaction dated Wednesday, August 14th. The shares were acquired at an average cost of $71.39 per share, with a total value of $75,387.84. Following the completion of the transaction, the vice president now owns 1,056 shares in the company, valued at approximately $75,387.84. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 7.00% of the stock is owned by company insiders.

Institutional Investors Weigh In On Stepan

Several hedge funds have recently added to or reduced their stakes in the business. Swedbank AB purchased a new stake in shares of Stepan during the 1st quarter worth about $648,000. First Eagle Investment Management LLC increased its holdings in shares of Stepan by 36.3% during the 1st quarter. First Eagle Investment Management LLC now owns 70,376 shares of the basic materials company’s stock worth $6,337,000 after buying an additional 18,733 shares during the last quarter. Assenagon Asset Management S.A. acquired a new stake in shares of Stepan during the 2nd quarter worth approximately $679,000. Price T Rowe Associates Inc. MD increased its holdings in Stepan by 5.9% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 13,878 shares of the basic materials company’s stock valued at $1,250,000 after purchasing an additional 775 shares during the last quarter. Finally, Semanteon Capital Management LP acquired a new stake in Stepan in the 3rd quarter valued at approximately $1,195,000. 82.70% of the stock is owned by hedge funds and other institutional investors.

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.