Valvoline (NYSE:VVV) Shares Gap Down - Here's Why

Shares of Valvoline Inc. (NYSE:VVV - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $42.05, but opened at $41.07. Valvoline shares last traded at $41.50, with a volume of 126,828 shares trading hands.

Analyst Ratings Changes

VVV has been the topic of a number of recent research reports. Stephens initiated coverage on shares of Valvoline in a research note on Tuesday. They set an "overweight" rating and a $49.00 price target on the stock. Royal Bank of Canada dropped their price target on shares of Valvoline from $54.00 to $48.00 and set an "outperform" rating on the stock in a research note on Thursday, August 8th. Baird R W raised shares of Valvoline to a "strong-buy" rating in a report on Thursday, August 15th. Citigroup upped their target price on shares of Valvoline from $45.00 to $48.00 and gave the stock a "neutral" rating in a report on Friday, July 19th. Finally, Robert W. Baird began coverage on shares of Valvoline in a report on Thursday, August 15th. They set an "outperform" rating and a $48.00 target price on the stock. Two analysts have rated the stock with a hold rating, seven have issued a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $47.75.

Valvoline Stock Down 0.6 %

The stock's fifty day moving average price is $40.97 and its 200 day moving average price is $42.12. The stock has a market cap of $5.38 billion, a P/E ratio of 33.16 and a beta of 1.45. The company has a current ratio of 0.73, a quick ratio of 0.62 and a debt-to-equity ratio of 10.57.

Valvoline (NYSE:VVV - Get Free Report) last issued its quarterly earnings results on Wednesday, August 7th. The basic materials company reported $0.45 EPS for the quarter, missing analysts' consensus estimates of $0.48 by ($0.03). The company had revenue of $421.00 million during the quarter, compared to the consensus estimate of $425.17 million. Valvoline had a return on equity of 182.88% and a net margin of 10.45%. Valvoline's quarterly revenue was up 11.9% on a year-over-year basis. During the same period in the previous year, the company earned $0.43 EPS. As a group, research analysts forecast that Valvoline Inc. will post 1.53 earnings per share for the current fiscal year.

Valvoline announced that its Board of Directors has initiated a share buyback plan on Tuesday, July 30th that allows the company to repurchase $400.00 million in shares. This repurchase authorization allows the basic materials company to reacquire up to 7.6% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board believes its shares are undervalued.

Institutional Investors Weigh In On Valvoline

Institutional investors have recently added to or reduced their stakes in the company. UMB Bank n.a. boosted its position in Valvoline by 92.1% during the 3rd quarter. UMB Bank n.a. now owns 630 shares of the basic materials company's stock valued at $26,000 after buying an additional 302 shares during the period. Blue Trust Inc. boosted its position in Valvoline by 57.9% during the 2nd quarter. Blue Trust Inc. now owns 728 shares of the basic materials company's stock valued at $32,000 after buying an additional 267 shares during the period. Ashton Thomas Private Wealth LLC purchased a new stake in Valvoline during the 2nd quarter valued at $34,000. Mather Group LLC. boosted its position in Valvoline by 1,617.0% during the 2nd quarter. Mather Group LLC. now owns 807 shares of the basic materials company's stock valued at $36,000 after buying an additional 760 shares during the period. Finally, GAMMA Investing LLC boosted its position in Valvoline by 46.5% during the 3rd quarter. GAMMA Investing LLC now owns 1,465 shares of the basic materials company's stock valued at $61,000 after buying an additional 465 shares during the period. Hedge funds and other institutional investors own 96.13% of the company's stock.

About Valvoline

Valvoline Inc engages in the operation and franchising of vehicle service centers and retail stores in the United States and Canada. The company, through its service centers, provides fluid exchange for motor oil, transmission and differential fluid, and coolant; parts replacement for batteries, filters, wiper blades, and belts; and safety services, such as tire inflation and rotation, bulbs, and safety checks.