Should Traders Take A Bite Out Of Stepan Company (SCL)?

On Tuesday, shares of Stepan Company (NYSE:SCL) marked $109.08 per share versus a previous $109.58 closing price. With having a -0.46% loss, an insight into the fundamental values of Stepan Company, investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. SCL showed a rise of 6.48% within its YTD performance, with highs and lows between $69.33 – $110.50 during the period of 52 weeks, compared to the simple moving average of 13.19% in the period of the last 200 days.

Seaport Global Securities equity researchers changed the status of Stepan Company (NYSE: SCL) shares from “Neutral” to a “Buy” rating in the report published on April 2nd, 2020. Other analysts, including CL King, also published their reports on SCL shares. CL King repeated the rating from the previous report, marking SCL under “Neutral” rating, in the report published on March 18th, 2020. Additionally, SCL shares got another “Buy” rating from Stifel, setting a target price of $94 on the company’s shares, according to the report published in December 11th, 2018. On the other hand, Seaport Global Securities Downgrade the “Neutral” rating for SCL shares, as published in the report on May 3rd, 2016. Global Hunter Securities seems to be going bullish on the price of SCL shares, based on the price prediction for SCL, indicating that the shares will jump to $57, giving the shares “Accumulate” rating based on their report from June 4th, 2015.

Stepan Company (SCL) Analysis

The present dividend yield for SCL 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 Stepan Company, the company needs to provide a healthy cash flow, currently at the value of 21.86. In addition, the growth of sales from quarter to quarter is recording -2.60%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Stepan Company (SCL) 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 12.70% 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 1.80 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 SCL is currently recording an average of 98.80K in volumes. The volatility of the stock on monthly basis is set at 2.74%, while the weekly volatility levels are marked at 1.65%with 1.52% of gain in the last seven days. Additionally, long-term investors are predicting the target price of $123.50, indicating growth from the present price of $109.08, which can represent yet another valuable research and analysis points that can help you decide whether to invest in SCL or pass.

What to Look for When Analyzing Stepan Company Shares?

Stepan Company (SCL) is based in the USA and it represents one of the well-known company operating with Basic Materials sector. If you wish to compare SCL shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 22.82 for Stepan Company, while the value 17.63 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 4.78 is supported by the yearly EPS growth of -6.80%.

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 1.70%, 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 78.70% 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 SCL Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in SCL in the recent period. That is how The Vanguard Group, Inc. now has an increase position in SCL by 2.90% in the first quarter, owning 2.33 million shares of SCL stocks, with the value of $226.18 million after the purchase of an additional 65,634 shares during the last quarter. In the meanwhile, SSgA Funds Management, Inc. also increased their stake in SCL shares changed 134.30% in the first quarter, which means that the company now owns 1.42 million shares of company, all valued at $137.4 million after the acquisition of additional 811,108 shares during the last quarter.

Dimensional Fund Advisors LP acquired a new position in Stepan Company during the first quarter, with the value of $106.07 million, and Norges Bank Investment Management increased their stake in the company’s shares by 1.11% in the first quarter, now owning 5,348 shares valued at $47.49 million after the acquisition of the additional 489133 shares during the last quarter. At the present, 78.70% of SCL shares are in the ownership of institutional investors.