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 trading hands.

Wall Street Analyst Weigh In

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

Valvoline Stock Down 0.6 %

The company has a market cap of $5.38 billion, a P/E ratio of 33.17 and a beta of 1.45. The company has a debt-to-equity ratio of 10.57, a quick ratio of 0.62 and a current ratio of 0.73. The business’s fifty day moving average is $41.01 and its two-hundred day moving average is $42.09.

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

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

Institutional Trading of Valvoline

Several institutional investors and hedge funds have recently made changes to their positions in the company. UMB Bank n.a. increased its position in Valvoline by 92.1% during the 3rd quarter. UMB Bank n.a. now owns 630 shares of the basic materials company’s stock valued at $26,000 after purchasing an additional 302 shares during the period. Blue Trust Inc. increased its holdings in Valvoline by 57.9% during the second quarter. Blue Trust Inc. now owns 728 shares of the basic materials company’s stock valued at $32,000 after buying an additional 267 shares during the period. Ashton Thomas Private Wealth LLC bought a new position in Valvoline in the second quarter worth approximately $34,000. Mather Group LLC. lifted its holdings in Valvoline by 1,617.0% during the second quarter. Mather Group LLC. now owns 807 shares of the basic materials company’s stock worth $36,000 after buying an additional 760 shares during the period. Finally, GAMMA Investing LLC boosted its position in Valvoline by 46.5% during the 3rd quarter. GAMMA Investing LLC now owns 1,465 shares of the basic materials company’s stock valued at $61,000 after acquiring an additional 465 shares in the last quarter. 96.13% of the stock is currently owned by institutional investors.

About Valvoline

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.