NewMarket (NYSE:NEU) Downgraded to “Sell” at Zacks Investment Research

Zacks Investment Research lowered shares of NewMarket (NYSE:NEU) from a hold rating to a sell rating in a research report sent to investors on Tuesday, 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. “

NYSE NEU traded down $1.50 during trading hours on Tuesday, hitting $485.55. 35,332 shares of the company were exchanged, compared to its average volume of 57,124. The company has a 50 day moving average of $484.10 and a two-hundred day moving average of $447.93. The company has a quick ratio of 1.63, a current ratio of 2.95 and a debt-to-equity ratio of 1.09. NewMarket has a 52-week low of $378.24 and a 52-week high of $505.16. The firm has a market cap of $5.45 billion, a price-to-earnings ratio of 23.87 and a beta of 0.44.

NewMarket (NYSE:NEU) last announced its quarterly earnings data on Wednesday, October 23rd. The specialty chemicals company reported $6.06 earnings per share (EPS) for the quarter, beating the 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. On average, equities research analysts predict 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. The ex-dividend date is Friday, December 13th. This represents a $7.60 dividend on an annualized basis and a dividend yield of 1.57%. NewMarket’s payout ratio is 37.36%.

In other news, CAO Bruce R. Hazelgrove III sold 171 shares of the firm’s stock in a transaction on Thursday, October 31st. The shares were sold at an average price of $479.16, for a total value of $81,936.36. Following the sale, the chief accounting officer now directly owns 358 shares in the company, valued at approximately $171,539.28. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 17.02% of the stock is owned by company insiders.

Hedge funds and other institutional investors have recently made changes to their positions in the business. Steward Partners Investment Advisory LLC purchased a new position in shares of NewMarket in the 2nd quarter valued at about $41,000. Point72 Asset Management L.P. acquired a new stake in shares of NewMarket during the 3rd quarter worth about $47,000. Oppenheimer Asset Management Inc. raised its position in shares of NewMarket by 49.4% during the 2nd quarter. Oppenheimer Asset Management Inc. now owns 133 shares of the specialty chemicals company’s stock worth $53,000 after acquiring an additional 44 shares in the last quarter. SRS Capital Advisors Inc. purchased a new stake in NewMarket during the second quarter worth approximately $54,000. Finally, Point72 Hong Kong Ltd lifted its stake in NewMarket by 41.2% during the second 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 during the last quarter. 53.54% of the stock is owned by institutional investors.

NewMarket Company Profile

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.

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