NewMarket (NYSE:NEU) Downgraded by Zacks Investment Research to Sell

Zacks Investment Research lowered shares of NewMarket (NYSE:NEU) from a hold rating to a sell rating in a research note released on Tuesday morning, Zacks.com reports.

According to Zacks, “NewMarket Corporation through its subsidiaries, Afton Chemical Corporation and Ethyl Corporation, develops, manufactures, blends, and delivers chemical additives that enhance the performance of petroleum products. From custom-formulated chemical blends to market-general additive components, the NewMarket family of companies provides the world with the technology to make fuels burn cleaner, engines run smoother and machines last longer. “

Shares of NYSE:NEU opened at $487.23 on Tuesday. The company has a debt-to-equity ratio of 1.09, a quick ratio of 1.63 and a current ratio of 2.95. NewMarket has a 52 week low of $378.24 and a 52 week high of $505.16. The firm has a market cap of $5.38 billion, a PE ratio of 23.95 and a beta of 0.44. The firm’s fifty day moving average is $483.06 and its 200-day moving average is $447.25.

NewMarket (NYSE:NEU) last posted its quarterly earnings data on Wednesday, October 23rd. The specialty chemicals company reported $6.06 earnings per share for the quarter, beating the Zacks’ consensus estimate of $5.93 by $0.13. NewMarket had a return on equity of 47.54% and a net margin of 12.17%. The business had revenue of $555.82 million during the quarter. Sell-side analysts forecast that NewMarket will post 23.42 EPS for the current year.

The company also recently announced a quarterly dividend, which will be paid on Thursday, January 2nd. Investors of record on Monday, December 16th will be paid a dividend of $1.90 per share. This represents a $7.60 dividend on an annualized basis and a yield of 1.56%. The ex-dividend date is Friday, December 13th. NewMarket’s dividend payout ratio is presently 37.36%.

In other news, CAO Bruce R. Hazelgrove III sold 171 shares of NewMarket stock in a transaction dated Thursday, October 31st. The stock was sold at an average price of $479.16, for a total value of $81,936.36. Following the completion of the transaction, the chief accounting officer now directly owns 358 shares of the company’s stock, valued at approximately $171,539.28. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 17.02% of the stock is owned by insiders.

Large investors have recently added to or reduced their stakes in the company. Point72 Asset Management L.P. bought a new position in NewMarket during the third quarter worth $47,000. Steward Partners Investment Advisory LLC bought a new stake in shares of NewMarket during the second quarter valued at approximately $41,000. SRS Capital Advisors Inc. acquired a new position in shares of NewMarket during the second quarter worth approximately $54,000. Oppenheimer Asset Management Inc. raised its position in shares of NewMarket by 49.4% during the second quarter. Oppenheimer Asset Management Inc. now owns 133 shares of the specialty chemicals company’s stock worth $53,000 after purchasing an additional 44 shares during the period. Finally, Point72 Hong Kong Ltd lifted its holdings in shares of NewMarket by 41.2% in the 2nd quarter. Point72 Hong Kong Ltd now owns 257 shares of the specialty chemicals company’s stock worth $103,000 after purchasing an additional 75 shares in the last quarter. Institutional investors own 53.54% of the company’s stock.

About NewMarket

NewMarket Corporation, through its subsidiaries, engages in the petroleum additives businesses. The company offers lubricant additives for use in various vehicle and industrial applications, including engine oils, transmission fluids, off-road powertrain and hydraulic systems, gear oils, hydraulic oils, turbine oils, metalworking fluids, and other applications where metal-to-metal moving parts are utilized; and engine oil, driveline, and industrial additives.

Read More: Equal Weight Rating

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