Zacks Investment Research Downgrades NewMarket (NYSE:NEU) to Sell

NewMarket (NYSE:NEU) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Thursday, 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. “

Separately, Buckingham Research raised shares of NewMarket from an “underperform” rating to a “neutral” rating and set a $420.00 price target on the stock in a research report on Friday, August 2nd.

NYSE NEU traded up $3.61 on Thursday, hitting $494.69. 30,524 shares of the stock were exchanged, compared to its average volume of 58,925. The company has a debt-to-equity ratio of 1.09, a current ratio of 2.95 and a quick ratio of 1.63. The business’s fifty day moving average is $469.93 and its 200 day moving average is $438.37. NewMarket has a 52 week low of $378.24 and a 52 week high of $495.30. The company has a market capitalization of $5.40 billion, a PE ratio of 24.32 and a beta of 0.44.

NewMarket (NYSE:NEU) last posted its quarterly earnings results on Wednesday, October 23rd. The specialty chemicals company reported $6.06 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $5.93 by $0.13. NewMarket had a net margin of 12.17% and a return on equity of 47.54%. The firm had revenue of $555.82 million for the quarter. Analysts predict that NewMarket will post 23.42 EPS for the current fiscal year.

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In other NewMarket news, CAO Bruce R. Hazelgrove III sold 171 shares of the company’s stock in a transaction on Thursday, October 31st. The shares were sold at an average price of $479.16, for a total transaction of $81,936.36. Following the sale, the chief accounting officer now directly owns 358 shares of the company’s stock, valued at $171,539.28. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 17.02% of the company’s stock.

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Atria Investments LLC acquired a new position in shares of NewMarket in the second quarter valued at $1,316,000. Jacobs Levy Equity Management Inc. acquired a new position in shares of NewMarket in the second quarter valued at $19,519,000. Pinebridge Investments L.P. acquired a new position in shares of NewMarket in the second quarter valued at $10,938,000. Nuveen Asset Management LLC acquired a new position in shares of NewMarket in the second quarter valued at $7,120,000. Finally, Russell Investments Group Ltd. increased its holdings in shares of NewMarket by 81.8% in the third quarter. Russell Investments Group Ltd. now owns 32,977 shares of the specialty chemicals company’s stock valued at $15,552,000 after purchasing an additional 14,835 shares during the last quarter. 55.39% of the stock is currently owned by hedge funds and other institutional investors.

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.

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