Valvoline (NYSE:VVV) Stock Breaks Above 200 Day Moving Average – Here’s Why

Valvoline (NYSE:VVV)’s share price crossed above its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $34.35 and traded as high as $34.43. Valvoline shares last traded at $34.3630, with a volume of 4,040,383 shares changing hands.

Wall Street Analyst Weigh In

A number of analysts recently commented on VVV shares. Piper Sandler reaffirmed an “overweight” rating and issued a $44.00 target price on shares of Valvoline in a research report on Wednesday, July 29th. Morgan Stanley reaffirmed a “buy” rating on shares of Valvoline in a report on Thursday, October 1st. Citigroup cut their price target on Valvoline from $41.00 to $34.00 and set a “neutral” rating for the company in a report on Thursday, October 1st. Weiss Ratings upgraded Valvoline from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, August 6th. Finally, TD Cowen dropped their price objective on Valvoline from $45.00 to $40.00 and set a “buy” rating on the stock in a report on Wednesday, October 14th. Thirteen investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $41.17.

Valvoline Stock Up 7.2%

The business’s 50-day simple moving average is $30.74 and its 200 day simple moving average is $34.38. The company has a current ratio of 0.70, a quick ratio of 0.58 and a debt-to-equity ratio of 3.77. The firm has a market cap of $4.61 billion, a PE ratio of 18.74 and a beta of 1.01.

Valvoline (NYSE:VVV) last posted its earnings results on Wednesday, August 5th. The basic materials company reported $0.57 EPS for the quarter, topping the consensus estimate of $0.50 by $0.07. Valvoline had a return on equity of 65.12% and a net margin of 5.17%. The firm had revenue of $544.60 million for the quarter, compared to analyst estimates of $543.21 million. During the same period last year, the company earned $0.47 earnings per share. Valvoline’s revenue for the quarter was up 24.1% compared to the same quarter last year. As a group, equities research analysts expect that Valvoline will post 1.76 earnings per share for the current year.

Valvoline declared that its Board of Directors has approved a share repurchase program on Tuesday, September 29th that permits the company to repurchase $175 million in outstanding shares. This buyback authorization permits the basic materials company to buy up to 4.8% of its shares through open market purchases. Stock buyback programs are often an indication that the company’s management believes its stock is undervalued.

Insider Buying and Selling at Valvoline

In related news, CAO Jordan M. Denny acquired 1,506 shares of the firm’s stock in a transaction that occurred on Wednesday, August 12th. The shares were purchased at an average price of $33.20 per share, with a total value of $49,999.20. Following the completion of the acquisition, the chief accounting officer owned 4,121 shares in the company, valued at approximately $136,817.20. This represents a 57.59% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Julie O’Daniel sold 3,700 shares of the stock in a transaction on Friday, August 21st. The shares were sold at an average price of $33.81, for a total value of $125,097.00. Following the sale, the insider directly owned 14,279 shares in the company, valued at approximately $482,772.99. The trade was a 20.58% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.66% of the stock is owned by corporate insiders.

Institutional Trading of Valvoline

Several institutional investors and hedge funds have recently bought and sold shares of VVV. Measured Wealth Private Client Group LLC bought a new position in Valvoline during the first quarter worth $28,000. Integrated Wealth Concepts LLC acquired a new stake in shares of Valvoline during the second quarter valued at about $35,000. Elevation Wealth Partners LLC bought a new position in Valvoline during the 3rd quarter worth $34,000. Cedar Mountain Advisors LLC bought a new position in Valvoline during the 1st quarter worth approximately $42,000. Finally, Bullseye Investment Management LLC acquired a new stake in shares of Valvoline during the second quarter worth $54,000. Institutional investors and hedge funds own 96.13% of the company’s stock.

About Valvoline

Valvoline Inc (NYSE: VVV) is an automotive maintenance services company that operates and franchises Valvoline Instant Oil Change service centers. Its locations provide preventive vehicle maintenance designed to help drivers keep their cars operating reliably and extend the useful life of key components.

The company’s services include oil changes, fluid replacement and top-offs, battery testing and replacement, air-conditioning services, tire rotation, tire services, and replacement of filters, wiper blades, and other routine maintenance items.