Valvoline (NYSE:VVV) Shares Gap Down After Earnings Miss

Valvoline Inc. (NYSE:VVV) gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. 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 trading hands.

The basic materials company reported $0.34 EPS for the quarter, missing the consensus estimate of $0.36 by ($0.02). Valvoline had a net margin of 16.34% and a return on equity of 143.64%. The firm had revenue of $403.20 million during the quarter, compared to analyst estimates of $405.38 million. During the same quarter in the prior year, the firm posted $0.37 EPS. The firm’s revenue for the quarter was up 3.7% on a year-over-year basis.

Analysts Set New Price Targets

A number of brokerages have commented on VVV. TD Cowen assumed coverage on shares of Valvoline in a report on Friday, April 4th. They set a “buy” rating and a $40.00 price objective on the stock. JPMorgan Chase & Co. increased their price target on shares of Valvoline from $37.00 to $38.00 and gave the company a “neutral” rating in a research note on Thursday, February 13th. Royal Bank of Canada boosted their price objective on shares of Valvoline from $46.00 to $48.00 and gave the stock an “outperform” rating in a research report on Friday, February 7th. Wells Fargo & Company decreased their price objective on Valvoline from $44.00 to $42.00 and set an “overweight” rating on the stock in a research report on Monday, April 28th. Finally, Citigroup dropped their target price on Valvoline from $41.00 to $38.00 and set a “neutral” rating for the company in a research report on Tuesday, April 29th. Four investment analysts have rated the stock with a hold rating, eight have given a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $42.33.

Insider Activity

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Headlands Technologies LLC grew its position in shares of Valvoline by 53.3% in the 1st quarter. Headlands Technologies LLC now owns 3,090 shares of the basic materials company’s stock valued at $108,000 after purchasing an additional 1,075 shares during the period. Deutsche Bank AG lifted its stake in Valvoline by 12.0% in the first quarter. Deutsche Bank AG now owns 149,059 shares of the basic materials company’s stock valued at $5,189,000 after buying an additional 15,919 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its holdings in shares of Valvoline by 1.8% in the first quarter. Charles Schwab Investment Management Inc. now owns 1,673,073 shares of the basic materials company’s stock valued at $58,240,000 after buying an additional 30,319 shares during the period. Primecap Management Co. CA bought a new stake in shares of Valvoline during the first quarter worth $944,000. Finally, Geneva Capital Management LLC raised its holdings in shares of Valvoline by 2.6% during the first quarter. Geneva Capital Management LLC now owns 1,252,659 shares of the basic materials company’s stock worth $43,605,000 after acquiring an additional 32,206 shares during the period. 96.13% of the stock is owned by institutional investors and hedge funds.

Valvoline Stock Down 2.7 %

The firm’s 50-day moving average is $34.42 and its 200 day moving average is $37.01. The firm has a market capitalization of $4.19 billion, a P/E ratio of 15.79 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.