Valvoline (NYSE:VVV) Shares Gap Down on Disappointing Earnings

Valvoline Inc. (NYSE:VVV) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $34.57, but opened at $32.79. Valvoline shares last traded at $32.25, with a volume of 827,318 shares traded.

The basic materials company reported $0.34 earnings per share for the quarter, missing analysts’ consensus estimates of $0.36 by ($0.02). Valvoline had a net margin of 16.34% and a return on equity of 143.64%. During the same period in the prior year, the firm posted $0.37 earnings per share. The company’s quarterly revenue was up 3.7% on a year-over-year basis.

Wall Street Analyst Weigh In

Several research firms have weighed in on VVV. TD Securities began coverage on shares of Valvoline in a report on Friday, April 4th. They issued a “buy” rating and a $40.00 price target on the stock. Wells Fargo & Company lowered their target price on Valvoline from $44.00 to $42.00 and set an “overweight” rating on the stock in a research note on Monday, April 28th. TD Cowen assumed coverage on Valvoline in a research note on Friday, April 4th. They issued a “buy” rating and a $40.00 price target for the company. Royal Bank of Canada increased their price objective on Valvoline from $46.00 to $48.00 and gave the stock an “outperform” rating in a research report on Friday, February 7th. Finally, JPMorgan Chase & Co. boosted their target price on shares of Valvoline from $37.00 to $38.00 and gave the company a “neutral” rating in a research report on Thursday, February 13th. Four equities research analysts have rated the stock with a hold rating, eight have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $42.67.

Insider Activity at Valvoline

In other Valvoline news, insider Julie Marie O’daniel sold 6,000 shares of the business’s stock in a transaction that occurred on Tuesday, February 25th. The shares were sold at an average price of $37.41, for a total transaction of $224,460.00. Following the completion of the transaction, the insider now directly owns 15,305 shares in the company, valued at $572,560.05. The trade was a 28.16 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.66% of the stock is owned by insiders.

Hedge Funds Weigh In On Valvoline

A number of institutional investors have recently modified their holdings of the business. Huntington National Bank grew its position in Valvoline by 1,004.9% in the fourth quarter. Huntington National Bank now owns 895 shares of the basic materials company’s stock valued at $32,000 after acquiring an additional 814 shares during the last quarter. Opal Wealth Advisors LLC acquired a new stake in shares of Valvoline in the 1st quarter valued at approximately $35,000. Centricity Wealth Management LLC acquired a new stake in shares of Valvoline in the 4th quarter valued at approximately $36,000. American National Bank & Trust bought a new stake in shares of Valvoline during the 1st quarter valued at approximately $40,000. Finally, Versant Capital Management Inc increased its position in Valvoline by 221.8% during the 1st quarter. Versant Capital Management Inc now owns 1,181 shares of the basic materials company’s stock worth $41,000 after purchasing an additional 814 shares in the last quarter. Institutional investors and hedge funds own 96.13% of the company’s stock.

Valvoline Stock Performance

The company’s 50 day moving average is $34.46 and its 200 day moving average is $37.07. The firm has a market cap of $4.31 billion, a P/E ratio of 16.22 and a beta of 1.20. The company has a debt-to-equity ratio of 4.39, a quick ratio of 0.58 and a current ratio of 0.70.

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.