Valvoline (NYSE:VVV) Shares Gap Down – Here’s Why

Valvoline Inc. (NYSE:VVV)’s share price gapped down prior to trading on Friday . The stock had previously closed at $42.05, but opened at $41.07. Valvoline shares last traded at $41.50, with a volume of 126,828 shares.

Wall Street Analyst Weigh In

VVV has been the topic of a number of recent analyst reports. Citigroup raised their price target on shares of Valvoline from $45.00 to $48.00 and gave the company a “neutral” rating in a report on Friday, July 19th. Wells Fargo & Company lowered their target price on shares of Valvoline from $50.00 to $46.00 and set an “overweight” rating for the company in a research note on Thursday, August 8th. Stephens started coverage on Valvoline in a research report on Tuesday, October 15th. They set an “overweight” rating and a $49.00 price target on the stock. Baird R W raised Valvoline to a “strong-buy” rating in a research report on Thursday, August 15th. Finally, Royal Bank of Canada dropped their target price on Valvoline from $54.00 to $48.00 and set an “outperform” rating on the stock in a research note on Thursday, August 8th. Two analysts have rated the stock with a hold rating, seven have issued a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, Valvoline has a consensus rating of “Moderate Buy” and an average price target of $47.75.

Valvoline Stock Down 0.6 %

The firm has a market capitalization of $5.38 billion, a price-to-earnings ratio of 33.17 and a beta of 1.45. 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 company’s 50 day moving average price is $41.01 and its 200 day moving average price is $42.09.

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

Valvoline declared that its board has initiated a share repurchase program on Tuesday, July 30th that allows the company to buyback $400.00 million in shares. This buyback authorization allows the basic materials company to purchase up to 7.6% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s management believes its stock is undervalued.

Institutional Trading of Valvoline

Several institutional investors and hedge funds have recently bought and sold shares of the business. Wasatch Advisors LP raised its holdings in shares of Valvoline by 25.1% during the first quarter. Wasatch Advisors LP now owns 8,507,925 shares of the basic materials company’s stock worth $379,198,000 after purchasing an additional 1,706,190 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in shares of Valvoline by 3.6% during the 2nd quarter. Dimensional Fund Advisors LP now owns 2,720,748 shares of the basic materials company’s stock valued at $117,534,000 after buying an additional 94,673 shares during the last quarter. Sculptor Capital LP lifted its holdings in shares of Valvoline by 187.6% in the 2nd quarter. Sculptor Capital LP now owns 1,879,500 shares of the basic materials company’s stock valued at $81,194,000 after buying an additional 1,226,000 shares during the period. Commerce Bank lifted its holdings in shares of Valvoline by 0.8% in the 1st quarter. Commerce Bank now owns 1,197,378 shares of the basic materials company’s stock valued at $53,367,000 after buying an additional 10,086 shares during the period. Finally, Vaughan Nelson Investment Management L.P. boosted its stake in shares of Valvoline by 6.4% in the second quarter. Vaughan Nelson Investment Management L.P. now owns 1,130,920 shares of the basic materials company’s stock worth $48,857,000 after buying an additional 68,340 shares during the last quarter. 96.13% of the stock is currently owned by institutional investors and hedge funds.

Valvoline Company Profile

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.