Valvoline Inc. (NYSE: VVV) stock fell -2.21% on Friday to $26.96 against a previous-day closing price of $27.57. With 1.1 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.26 million shares. During the session, the Oil & Gas Refining & Marketing company that operates in wider Energy sector, reached to the highest price of $27.66 whereas the lowest price it dropped to was $26.95. The 52-week range on VVV shows that it touched its highest point at $37.97 and its lowest point at $26.69 during that stretch. It currently has a 1-year price target of $38.40. With its current market cap of 4.85 billion, VVV has annualized dividend of $0.50 while the current yield stands at 1.85%. Beta for the stock currently stands at 1.34.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of VVV was down-trending over the past week, with a drop of -2.64%, but this was down by -11.02% over a month. Three-month performance dropped to -6.26% while six-month performance fell -11.46%. The stock lost -13.45% in the past year, while it has lost -27.70% so far this year. A look at the trailing 12-month EPS for VVV yields 2.41 with Next year EPS estimates of 1.95. For the next quarter, that number is 0.51. This implies an EPS growth rate of 35.70% for this year and -4.75% for next year. EPS is expected to grow by 10.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 11.50%.
Float and Shares Shorts:
At present, 179.00 million VVV shares are outstanding with a float of 176.45 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.66 million, which was 2.05% higher than short shares on Jun 14, 2022. In addition to Mr. Samuel J. Mitchell Jr. as the firm’s CEO & Director, Ms. Mary E. Meixelsperger serves as its Chief Financial Officer.
Through their ownership of 94.22% of VVV’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 96.46% of VVV, in contrast to 51.10% held by mutual funds. Shares owned by individuals account for 41.01%. As the largest shareholder in VVV with 9.42% of the stake, The Vanguard Group, Inc. holds 16,682,297 shares worth 16,682,297. A second-largest stockholder of VVV, BlackRock Fund Advisors, holds 14,280,709 shares, controlling over 8.07% of the firm’s shares. Fidelity Management & Research Co is the third largest shareholder in VVV, holding 13,780,010 shares or 7.78% stake. With a 2.98% stake in VVV, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 5,270,365 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 2.96% of VVV stock, is the second-largest Mutual Fund holder. It holds 5,243,157 shares valued at 152.42 million. Vanguard Small Cap Index Fund holds 2.55% of the stake in VVV, owning 4,513,788 shares worth 131.22 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for VVV since 7 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With VVV analysts setting a high price target of $41.00 and a low target of $35.00, the average target price over the next 12 months is $38.00. Based on these targets, VVV could surge 52.08% to reach the target high and rise by 29.82% to reach the target low. Reaching the average price target will result in a growth of 40.95% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. VVV will report FY 2022 earnings on 11/09/2022. Analysts have provided yearly estimates in a range of $2.11 being high and $1.98 being low. For VVV, this leads to a yearly average estimate of $2.09. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Valvoline Inc. surprised analysts by $0.01 when it reported $0.58 EPS against a consensus estimate of $0.57. The surprise factor in the prior quarter was -$0.02. Based on analyst estimates, the high estimate for the next quarter is $0.57 and the low estimate is $0.54. The average estimate for the next quarter is thus $0.56.
Summary of Insider Activity:
Insiders traded VVV stock several times over the past three months with 1 Buys and 1 Sells. In these transactions, 3,816 shares were bought while 6,500 shares were sold. The number of buy transactions has increased to 37 while that of sell transactions has risen to 40 over the past year. The total number of shares bought during that period was 235,434 while 107,259 shares were sold.