Valvoline (NYSE:VVV) Shares Up 7.2% on Strong Earnings

Valvoline Inc. (NYSE:VVV) shares rose 7.2% during mid-day trading on Thursday following a better than expected earnings announcement. The stock traded as high as $39.52 and last traded at $39.48. Approximately 1,124,987 shares changed hands during trading, a decline of 22% from the average daily volume of 1,441,876 shares. The stock had previously closed at $36.84.

The basic materials company reported $0.32 earnings per share for the quarter, topping analysts’ consensus estimates of $0.31 by $0.01. Valvoline had a return on equity of 197.22% and a net margin of 13.06%.

Analysts Set New Price Targets

VVV has been the topic of a number of research analyst reports. Stephens began coverage on shares of Valvoline in a research note on Tuesday, October 15th. They issued an “overweight” rating and a $49.00 target price on the stock. Wells Fargo & Company dropped their price objective on Valvoline from $46.00 to $44.00 and set an “overweight” rating on the stock in a research note on Wednesday, November 20th. Royal Bank of Canada decreased their target price on Valvoline from $52.00 to $46.00 and set an “outperform” rating for the company in a research note on Wednesday, November 20th. Stifel Nicolaus assumed coverage on Valvoline in a research report on Friday, December 20th. They issued a “hold” rating and a $42.00 target price for the company. Finally, Morgan Stanley reissued an “equal weight” rating and issued a $38.00 price target (down previously from $42.00) on shares of Valvoline in a report on Tuesday, January 21st. Three investment analysts have rated the stock with a hold rating, six have issued a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $44.89.

Insider Activity

In other Valvoline news, Director Charles M. Sonsteby purchased 10,000 shares of the firm’s stock in a transaction that occurred on Monday, November 25th. The shares were acquired at an average cost of $39.50 per share, for a total transaction of $395,000.00. Following the transaction, the director now directly owns 26,437 shares in the company, valued at approximately $1,044,261.50. The trade was a 60.84 % increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this link. Also, CEO Lori Ann Flees acquired 2,500 shares of the business’s stock in a transaction on Wednesday, November 27th. The stock was acquired at an average price of $39.64 per share, with a total value of $99,100.00. Following the transaction, the chief executive officer now owns 38,428 shares in the company, valued at approximately $1,523,285.92. The trade was a 6.96 % increase in their position. The disclosure for this purchase can be found here. 0.66% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in VVV. UMB Bank n.a. raised its stake in shares of Valvoline by 92.1% in the third quarter. UMB Bank n.a. now owns 630 shares of the basic materials company’s stock worth $26,000 after acquiring an additional 302 shares during the last quarter. Centricity Wealth Management LLC acquired a new stake in shares of Valvoline in the fourth quarter valued at approximately $36,000. Prospera Private Wealth LLC bought a new position in Valvoline in the 3rd quarter worth approximately $41,000. ORG Partners LLC raised its position in Valvoline by 466.7% in the 4th quarter. ORG Partners LLC now owns 1,275 shares of the basic materials company’s stock worth $46,000 after purchasing an additional 1,050 shares during the last quarter. Finally, Blue Trust Inc. lifted its holdings in Valvoline by 83.0% during the 3rd quarter. Blue Trust Inc. now owns 1,332 shares of the basic materials company’s stock worth $58,000 after buying an additional 604 shares in the last quarter. Institutional investors and hedge funds own 96.13% of the company’s stock.

Valvoline Price Performance

The stock has a 50-day simple moving average of $37.03 and a 200 day simple moving average of $39.96. The stock has a market capitalization of $5.05 billion, a P/E ratio of 24.40 and a beta of 1.45. The company has a debt-to-equity ratio of 5.77, a quick ratio of 0.61 and a current ratio of 0.72.

About Valvoline

Valvoline Inc engages in the operation and franchising of vehicle service centers and retail stores in the United States and Canada. The company, through its service centers, provides fluid exchange for motor oil, transmission and differential fluid, and coolant; parts replacement for batteries, filters, wiper blades, and belts; and safety services, such as tire inflation and rotation, bulbs, and safety checks.