Valvoline (NYSE:VVV) Shares Gap Down – Time to Sell?

Shares of Valvoline Inc. (NYSE:VVV) gapped down before the market opened 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 traded.

Analyst Ratings Changes

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

Valvoline Trading Down 0.6 %

The stock has a market cap of $5.38 billion, a P/E ratio of 32.94 and a beta of 1.45. The company has a current ratio of 0.73, a quick ratio of 0.62 and a debt-to-equity ratio of 10.57. The company has a 50-day moving average price of $40.97 and a two-hundred day moving average price of $42.12.

Valvoline (NYSE:VVV) last issued 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 return on equity of 182.88% and a net margin of 10.45%. The company had revenue of $421.00 million for the quarter, compared to analysts’ expectations of $425.17 million. During the same quarter last year, the company earned $0.43 earnings per share. The company’s revenue for the quarter was up 11.9% compared to the same quarter last year. On average, research analysts expect that Valvoline Inc. will post 1.53 EPS for the current fiscal year.

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

Institutional Investors Weigh In On Valvoline

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Blue Trust Inc. increased its stake in Valvoline by 57.9% during the second quarter. Blue Trust Inc. now owns 728 shares of the basic materials company’s stock worth $32,000 after acquiring an additional 267 shares during the last quarter. UMB Bank n.a. lifted its holdings in Valvoline by 92.1% during the 3rd quarter. UMB Bank n.a. now owns 630 shares of the basic materials company’s stock worth $26,000 after buying an additional 302 shares during the last quarter. Evergreen Capital Management LLC lifted its holdings in Valvoline by 6.1% during the 2nd quarter. Evergreen Capital Management LLC now owns 6,292 shares of the basic materials company’s stock worth $272,000 after buying an additional 359 shares during the last quarter. Park Place Capital Corp lifted its holdings in shares of Valvoline by 29.3% in the 3rd quarter. Park Place Capital Corp now owns 1,608 shares of the basic materials company’s stock valued at $67,000 after purchasing an additional 364 shares during the last quarter. Finally, GAMMA Investing LLC lifted its holdings in shares of Valvoline by 46.5% in the 3rd quarter. GAMMA Investing LLC now owns 1,465 shares of the basic materials company’s stock valued at $61,000 after purchasing an additional 465 shares during the last quarter. Institutional investors and hedge funds own 96.13% of the company’s stock.

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.