Empowered Funds takes new $4.95M stake in chemical maker Stepan
What's the deal? Empowered Funds LLCDealroom has a profile for this one. Try Dealroom → bought a new position in Stepan CompanyDealroom has a profile for this one. Try Dealroom → during the second quarter, acquiring 88,869 shares valued at about $4,952,000, according to Holdings ChannelDealroom has a profile for this one. Try Dealroom →. Stepan is a global manufacturer of specialty and intermediate chemicals, best known for surfactants.
Why now? The move follows Stepan's July 29 earnings, when it reported $1.18 earnings per share, nearly double the $0.61 consensus. Revenue reached $684.11 million, above the $635.85 million analysts expected and up 15% year on year.
The numbers behind the stock: Shares opened at $62.49 on Tuesday, near the top of a 52-week range of $41.82 to $68.00. Stepan carries a market capitalisation of $1.42 billion and a debt-to-equity ratio of 0.20.
What could go wrong? Analyst sentiment is mixed. MarketBeatDealroom has a profile for this one. Try Dealroom → data puts the consensus rating at "Reduce," though Seaport Research PartnersDealroom has a profile for this one. Try Dealroom → kept a "buy" rating with an $85.00 target and Wall Street ZenDealroom has a profile for this one. Try Dealroom → recently lifted the stock to "buy."
Empowered Funds joins a wave of institutional buyers. Northwestern Mutual Wealth ManagementDealroom has a profile for this one. Try Dealroom → and Allworth FinancialDealroom has a profile for this one. Try Dealroom → each opened new positions in the second quarter, while EverSource Wealth AdvisorsDealroom has a profile for this one. Try Dealroom → raised its holding by 206.5%. Institutions now own 82.70% of the stock.
The signal: Stepan's earnings beat and thickening institutional base point to renewed interest in a company whose PE ratio of -520.75 still reflects thin profitability. A payout ratio well below zero underscores that the recovery is early — its $0.395 quarterly dividend, yielding 2.5%, currently outpaces earnings.
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