Valvoline Inc (NYSE:VVV) Sees Large Decline in Short Interest

Valvoline Inc (NYSE:VVV) was the recipient of a significant decline in short interest in August. As of August 31st, there was short interest totalling 4,148,600 shares, a decline of 27.4% from the July 31st total of 5,712,800 shares. Based on an average daily volume of 1,060,000 shares, the short-interest ratio is presently 3.9 days. Approximately 2.2% of the company’s stock are short sold.

Several equities research analysts recently weighed in on VVV shares. Citigroup upped their target price on shares of Valvoline from $21.00 to $25.00 and gave the stock a “buy” rating in a research note on Friday, August 2nd. Zacks Investment Research reiterated a “buy” rating and set a $25.00 target price on shares of Valvoline in a report on Saturday. Finally, Buckingham Research raised shares of Valvoline from a “neutral” rating to a “buy” rating and raised their price target for the company from $18.00 to $24.00 in a research report on Monday, July 1st. Two investment analysts have rated the stock with a sell rating, three have assigned a hold rating and six have assigned a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus target price of $23.00.

VVV stock traded up $0.33 during mid-day trading on Wednesday, reaching $22.44. The company had a trading volume of 658,786 shares, compared to its average volume of 1,267,030. The firm has a fifty day simple moving average of $21.91 and a 200 day simple moving average of $19.55. The company has a market capitalization of $4.17 billion, a price-to-earnings ratio of 17.40, a price-to-earnings-growth ratio of 1.79 and a beta of 0.90. Valvoline has a fifty-two week low of $16.90 and a fifty-two week high of $23.16.

Valvoline (NYSE:VVV) last announced its quarterly earnings data on Wednesday, July 31st. The basic materials company reported $0.37 EPS for the quarter, topping the Zacks’ consensus estimate of $0.33 by $0.04. Valvoline had a negative return on equity of 80.89% and a net margin of 9.60%. The business had revenue of $613.00 million during the quarter, compared to the consensus estimate of $610.42 million. During the same period in the previous year, the company posted $0.32 earnings per share. The business’s revenue for the quarter was up 6.2% on a year-over-year basis. Sell-side analysts predict that Valvoline will post 1.33 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Monday, September 16th. Investors of record on Friday, August 30th will be paid a $0.106 dividend. The ex-dividend date is Thursday, August 29th. This represents a $0.42 dividend on an annualized basis and a yield of 1.89%. Valvoline’s dividend payout ratio is currently 32.56%.

Hedge funds and other institutional investors have recently bought and sold shares of the business. Wasatch Advisors Inc. raised its holdings in shares of Valvoline by 467.4% in the 1st quarter. Wasatch Advisors Inc. now owns 3,475,951 shares of the basic materials company’s stock valued at $64,514,000 after purchasing an additional 2,863,305 shares in the last quarter. HG Vora Capital Management LLC acquired a new position in shares of Valvoline during the second quarter worth $29,295,000. Nuveen Asset Management LLC acquired a new position in shares of Valvoline during the second quarter worth $22,641,000. Jacobs Levy Equity Management Inc. grew its stake in shares of Valvoline by 463.6% during the second quarter. Jacobs Levy Equity Management Inc. now owns 966,918 shares of the basic materials company’s stock worth $18,884,000 after purchasing an additional 795,348 shares in the last quarter. Finally, D. E. Shaw & Co. Inc. increased its holdings in Valvoline by 39.6% in the second quarter. D. E. Shaw & Co. Inc. now owns 1,730,172 shares of the basic materials company’s stock valued at $33,790,000 after buying an additional 491,102 shares during the last quarter. Institutional investors own 94.08% of the company’s stock.

Valvoline Company Profile

Valvoline Inc manufactures and markets engine and automotive maintenance products and services. It operates through three segments: Core North America, Quick Lubes, and International. The company offers lubricants for passenger car, light duty, and heavy duty; antifreeze/coolants for original equipment manufacturers; functional and maintenance chemicals, such as brake fluids and power steering fluids, as well as specialty coatings for automotive and industrial applications comprising rust prevention and sound absorption; and oil and air filters for light-duty vehicles.

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