Valvoline (NYSE:VVV) Trading Up 7.2% After Earnings Beat

Valvoline Inc. (NYSE:VVV)’s stock price traded up 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. 1,124,987 shares changed hands during trading, a decline of 22% from the average session volume of 1,441,876 shares. The stock had previously closed at $36.84.

The basic materials company reported $0.32 EPS for the quarter, topping the consensus estimate of $0.31 by $0.01. Valvoline had a net margin of 13.06% and a return on equity of 197.22%.

Wall Street Analyst Weigh In

VVV has been the topic of several recent research reports. Morgan Stanley restated an “equal weight” rating and issued a $38.00 price target (down from $42.00) on shares of Valvoline in a research report on Tuesday, January 21st. Robert W. Baird decreased their target price on Valvoline from $48.00 to $46.00 and set an “outperform” rating for the company in a research report on Wednesday, November 20th. Stephens assumed coverage on Valvoline in a research note on Tuesday, October 15th. They issued an “overweight” rating and a $49.00 price target for the company. Mizuho reduced their price objective on shares of Valvoline from $46.00 to $42.00 and set an “outperform” rating on the stock in a research note on Monday, January 6th. Finally, Wells Fargo & Company lowered their target price on shares of Valvoline from $46.00 to $44.00 and set an “overweight” rating for the company in a research note on Wednesday, November 20th. Three analysts have rated the stock with a hold rating, six have given a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $44.89.

Insider Activity

In other Valvoline news, CEO Lori Ann Flees purchased 2,500 shares of the firm’s stock in a transaction dated Wednesday, November 27th. The stock was bought at an average cost of $39.64 per share, with a total value of $99,100.00. Following the purchase, the chief executive officer now directly owns 38,428 shares of the company’s stock, valued at $1,523,285.92. The trade was a 6.96 % increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Also, CTO Robert Travis Dobbins sold 1,914 shares of Valvoline stock in a transaction that occurred on Wednesday, December 11th. The shares were sold at an average price of $40.00, for a total transaction of $76,560.00. Following the completion of the sale, the chief technology officer now owns 14,956 shares in the company, valued at $598,240. This trade represents a 11.35 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 0.66% of the company’s stock.

Institutional Inflows and Outflows

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

Valvoline Price Performance

The stock has a market cap of $5.05 billion, a price-to-earnings 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. The company has a 50-day simple moving average of $37.03 and a two-hundred day simple moving average of $39.96.

Valvoline Company Profile

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.