HSBC buys $682K Valvoline stake as shares slide to $31.78
What's the deal? HSBC HoldingsDealroom has a profile for this one. Try Dealroom → acquired a new position in ValvolineDealroom has a profile for this one. Try Dealroom → during the second quarter, buying 17,265 shares worth about $682,000, Holdings Channel.com reports. The move adds HSBC to a roster of institutional investors that own 96.13% of the automotive services company's stock.
The numbers: Valvoline opened at $31.78 on Thursday, near its one-year low of $28.50 and below its 200-day moving average of $35.63. The company carries a market cap of $4.06 billion, a price-to-earnings ratio of 39.73, and a debt-to-equity ratio of 3.77.
Why now? Valvoline last reported quarterly earnings on August 5, posting $0.57 earnings per share and beating the consensus estimate of $0.50 by $0.07. The stock's 50-day moving average sits at $36.76, above the current price.
Who else is buying? BlackRock opened a new stake worth roughly $501.9 million in the second quarter, while Boston PartnersDealroom has a profile for this one. Try Dealroom → lifted its position 39.2% to 5,537,621 shares valued at $198.8 million. Norges BankDealroom has a profile for this one. Try Dealroom → and Eminence CapitalDealroom has a profile for this one. Try Dealroom → also added new positions in recent quarters.
What are analysts saying? Twelve analysts rate Valvoline a buy and five rate it a hold, for a consensus of "Moderate Buy" and an average target price of $42.88. Benchmark initiated coverage with a $48.00 target on August 19, and StephensDealroom has a profile for this one. Try Dealroom → raised its target to $48.00 in late July.
Insider moves: Chief accounting officer Jordan M. Denny bought 1,506 shares at $33.20 on August 12, a 57.59% increase in his position. In June, insider Jonathan L. Caldwell sold 2,851 shares at $40.00 under a pre-arranged Rule 10b5-1 plan. Corporate insiders hold 0.66% of the stock.
The signal: HSBC's modest entry, against BlackRock's far larger commitment and analyst targets well above the current price, points to continued institutional interest even as Valvoline trades near its yearly low.
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