Stepan (NYSE:SCL) Sets New 12-Month Low – Time to Sell?

Stepan (NYSE:SCL) hit a new 52-week low during mid-day trading on Thursday . The stock traded as low as $56.44 and last traded at $56.72, with a volume of 6067 shares. The stock had previously closed at $57.37.

Analyst Upgrades and Downgrades

Separately, StockNews.com cut shares of Stepan from a “buy” rating to a “hold” rating in a report on Thursday, February 20th.

Stepan Price Performance

The business has a 50-day moving average of $60.82 and a 200 day moving average of $68.56. The firm has a market capitalization of $1.25 billion, a P/E ratio of 25.07 and a beta of 0.82. The company has a current ratio of 1.21, a quick ratio of 0.86 and a debt-to-equity ratio of 0.28.

Stepan (NYSE:SCL) last released its quarterly earnings data on Wednesday, February 19th. The basic materials company reported $0.12 EPS for the quarter, missing the consensus estimate of $0.45 by ($0.33). Stepan had a net margin of 2.31% and a return on equity of 4.21%. The firm had revenue of $525.60 million for the quarter, compared to the consensus estimate of $520.97 million. During the same quarter in the prior year, the firm earned $0.33 EPS. The company’s revenue was down 1.2% compared to the same quarter last year. On average, sell-side analysts predict that Stepan will post 3.55 earnings per share for the current fiscal year.

Stepan Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, March 14th. Shareholders of record on Monday, March 3rd were paid a $0.385 dividend. This represents a $1.54 dividend on an annualized basis and a dividend yield of 2.78%. The ex-dividend date was Monday, March 3rd. Stepan’s dividend payout ratio (DPR) is 69.68%.

Insider Activity

In related news, Director Susan Lewis bought 500 shares of the company’s stock in a transaction dated Tuesday, February 25th. The shares were bought at an average price of $63.53 per share, for a total transaction of $31,765.00. Following the completion of the acquisition, the director now directly owns 1,896 shares of the company’s stock, valued at $120,452.88. This trade represents a 35.82 % increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 6.90% of the company’s stock.

Institutional Investors Weigh In On Stepan

Institutional investors and hedge funds have recently bought and sold shares of the stock. Norges Bank purchased a new stake in Stepan in the 4th quarter valued at about $7,545,000. Deprince Race & Zollo Inc. grew its holdings in shares of Stepan by 20.5% in the fourth quarter. Deprince Race & Zollo Inc. now owns 638,500 shares of the basic materials company’s stock valued at $41,311,000 after acquiring an additional 108,556 shares in the last quarter. Southernsun Asset Management LLC lifted its holdings in Stepan by 24.0% during the fourth quarter. Southernsun Asset Management LLC now owns 383,685 shares of the basic materials company’s stock worth $24,824,000 after acquiring an additional 74,238 shares during the period. Jacobs Levy Equity Management Inc. boosted its position in Stepan by 409.2% in the third quarter. Jacobs Levy Equity Management Inc. now owns 92,053 shares of the basic materials company’s stock worth $7,111,000 after purchasing an additional 73,976 shares during the last quarter. Finally, Westwood Holdings Group Inc. grew its stake in Stepan by 7.1% in the 4th quarter. Westwood Holdings Group Inc. now owns 921,704 shares of the basic materials company’s stock valued at $59,634,000 after purchasing an additional 60,985 shares during the period. 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.