At Current Price, Is It Too Late To Buy Innospec Inc. (IOSP)?

On Thursday, shares of Innospec Inc. (NASDAQ:IOSP) marked $75.43 per share versus a previous $78.66 closing price. With having a -4.11% loss, an insight into the fundamental values of Innospec Inc., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. IOSP showed a fall of -27.08% within its YTD performance, with highs and lows between $56.71 – $107.85 during the period of 52 weeks, compared to the simple moving average of -12.07% in the period of the last 200 days.

CL King equity researchers changed the status of Innospec Inc. (NASDAQ: IOSP) shares to a “Buy” rating in the report published on September 4th, 2019. Other analysts, including KeyBanc Capital Markets, also published their reports on IOSP shares. KeyBanc Capital Markets repeated the rating from the previous report, marking IOSP under “Sector Weight” rating, in the report published on April 12th, 2019. Additionally, IOSP shares got another “Buy” rating from Johnson Rice. On the other hand, Monness Crespi & Hardt Downgrade the “Neutral” rating for IOSP shares, as published in the report on November 9th, 2017. Monness Crespi & Hardt seems to be going bullish on the price of IOSP shares, based on the price prediction for IOSP, indicating that the shares will jump to $65, giving the shares “Buy” rating based on their report from August 22nd, 2017. Another “Neutral” rating came from Monness Crespi & Hardt.

Innospec Inc. (IOSP) Analysis

The present dividend yield for IOSP owners is set at 0.01, marking the return investors will get regardless of the company’s performance in the upcoming period. However, in order for the company to be able to pay its dividends, just like it is the case with Innospec Inc., the company needs to provide a healthy cash flow, currently at the value of 17.02. In addition, the growth of sales from quarter to quarter is recording -4.10%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Innospec Inc. (IOSP) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 12.90% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 1.40 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while IOSP is currently recording an average of 113.06K in volumes. The volatility of the stock on monthly basis is set at 2.93%, while the weekly volatility levels are marked at 2.32%with -5.20% of loss in the last seven days. Additionally, long-term investors are predicting the target price of $87.50, indicating growth from the present price of $75.43, which can represent yet another valuable research and analysis points that can help you decide whether to invest in IOSP or pass.

What to Look for When Analyzing Innospec Inc. Shares?

Innospec Inc. (IOSP) is based in the USA and it represents one of the well-known company operating with Basic Materials sector. If you wish to compare IOSP shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 16.08 for Innospec Inc., while the value 15.29 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 4.69 is supported by the yearly EPS growth of 14.70%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 1.00%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 97.60% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in IOSP Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in IOSP in the recent period. That is how Fidelity Management & Research Co now has an increase position in IOSP by 24.72% in the first quarter, owning 2.84 million shares of IOSP stocks, with the value of $219.59 million after the purchase of an additional 563,356 shares during the last quarter. In the meanwhile, The Vanguard Group, Inc. also increased their stake in IOSP shares changed 1.06% in the first quarter, which means that the company now owns 2.57 million shares of company, all valued at $198.84 million after the acquisition of additional 26,942 shares during the last quarter.

Wells Capital Management, Inc. acquired a new position in Innospec Inc. during the first quarter, with the value of $104.7 million, and SSgA Funds Management, Inc. increased their stake in the company’s shares by 6.38% in the first quarter, now owning 45,385 shares valued at $58.42 million after the acquisition of the additional 756281 shares during the last quarter. In the end, Royce & Associates LP increased their position by 2.73% during the first quarter, now owning 696102 IOSP shares, now holding the value of $53.77 million in IOSP with the purchase of the additional 103,761 shares during the period of the last quarter. At the present, 97.60% of IOSP shares are in the ownership of institutional investors.