Stephens Initiates Coverage on Valvoline (NYSE:VVV)

Stephens initiated coverage on shares of Valvoline (NYSE:VVV) in a research report report published on Tuesday, MarketBeat Ratings reports. The brokerage issued an overweight rating and a $49.00 target price on the basic materials company’s stock.

A number of other equities analysts have also commented on the stock. Baird R W raised shares of Valvoline to a strong-buy rating in a research report on Thursday, August 15th. Royal Bank of Canada lowered their target price on Valvoline from $54.00 to $48.00 and set an outperform rating for the company in a report on Thursday, August 8th. Citigroup increased their price objective on shares of Valvoline from $45.00 to $48.00 and gave the company a neutral rating in a research note on Friday, July 19th. Robert W. Baird assumed coverage on Valvoline in a research report on Thursday, August 15th. They set an outperform rating and a $48.00 price objective on the stock. Finally, Wells Fargo & Company decreased their price target on shares of Valvoline from $50.00 to $46.00 and set an overweight rating for the company in a research report on Thursday, August 8th. Two investment analysts have rated the stock with a hold rating, seven have issued a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, Valvoline currently has a consensus rating of Moderate Buy and an average target price of $47.75.

Valvoline Price Performance

Valvoline stock opened at $41.48 on Tuesday. Valvoline has a 52-week low of $29.15 and a 52-week high of $48.26. The company has a quick ratio of 0.62, a current ratio of 0.73 and a debt-to-equity ratio of 10.57. The firm’s fifty day moving average is $40.85 and its 200 day moving average is $42.12. The company has a market cap of $5.34 billion, a price-to-earnings ratio of 32.92 and a beta of 1.45.

Valvoline (NYSE:VVV) last announced its earnings results on Wednesday, August 7th. The basic materials company reported $0.45 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.48 by ($0.03). The business had revenue of $421.00 million for the quarter, compared to analysts’ expectations of $425.17 million. Valvoline had a net margin of 10.45% and a return on equity of 182.88%. The firm’s quarterly revenue was up 11.9% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.43 earnings per share. Sell-side analysts forecast that Valvoline will post 1.53 EPS for the current fiscal year.

Valvoline declared that its board has initiated a stock buyback plan on Tuesday, July 30th that authorizes the company to buyback $400.00 million in outstanding shares. This buyback authorization authorizes the basic materials company to reacquire up to 7.6% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

Hedge Funds Weigh In On Valvoline

Several hedge funds and other institutional investors have recently modified their holdings of the stock. UMB Bank n.a. grew 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 purchasing an additional 302 shares during the last quarter. Blue Trust Inc. grew its holdings in shares of Valvoline by 57.9% during the second quarter. Blue Trust Inc. now owns 728 shares of the basic materials company’s stock valued at $32,000 after buying an additional 267 shares during the last quarter. Ashton Thomas Private Wealth LLC acquired a new position in shares of Valvoline in the 2nd quarter valued at $34,000. Mather Group LLC. raised its stake in Valvoline by 1,617.0% in the 2nd quarter. Mather Group LLC. now owns 807 shares of the basic materials company’s stock worth $36,000 after acquiring an additional 760 shares during the last quarter. Finally, GAMMA Investing LLC raised its stake in Valvoline by 46.5% in the 3rd quarter. GAMMA Investing LLC now owns 1,465 shares of the basic materials company’s stock worth $61,000 after acquiring an additional 465 shares during the last quarter. 96.13% of the stock is owned by hedge funds and other institutional investors.

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.