Innospec (NASDAQ:IOSP) Shares Gap Down – Here’s What Happened

Shares of Innospec Inc. (NASDAQ:IOSP) gapped down before the market opened on Wednesday. The stock had previously closed at $99.23, but opened at $91.65. Innospec shares last traded at $88.4250, with a volume of 37,238 shares trading hands.

Key Stories Impacting Innospec

Here are the key news stories impacting Innospec this week:

• Positive Sentiment: Adjusted and GAAP earnings were $1.29 per share, above the $1.26 consensus and up from $1.12 a year earlier. Revenue rose 7.2% year over year, and the company said all businesses contributed to revenue and operating-income growth. Innospec third-quarter results
• Positive Sentiment: Innospec raised its annual dividend by 9% and declared a semiannual payment of $0.94 per share, payable November 25 to shareholders of record November 17. It also reported $17.4 million in operating cash flow and $251.9 million in net cash. Dividend and financial results
• Negative Sentiment: Quarterly revenue of $473.6 million missed analyst expectations of $479.17 million. The shortfall may temper the positive earnings surprise and contribute to pressure on the shares. Innospec earnings report

Wall Street Analyst Weigh In

Several research analysts have issued reports on the stock. Wall Street Zen lowered shares of Innospec from a “strong-buy” rating to a “buy” rating in a report on Saturday, September 26th. Weiss Ratings upgraded shares of Innospec from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 8th. Finally, Seaport Research Partners reissued a “buy” rating and set a $110.00 target price on shares of Innospec in a research note on Thursday, August 6th. Two research analysts have rated the stock with a Hold rating. Based on data from MarketBeat.com, Innospec currently has a consensus rating of “Hold”.

Innospec Stock Down 16.9%

The firm has a 50 day moving average of $96.24 and a 200 day moving average of $84.60. The firm has a market cap of $2.03 billion, a PE ratio of 16.82, a P/E/G ratio of 2.65 and a beta of 0.88.

Innospec (NASDAQ:IOSP) last announced its quarterly earnings results on Tuesday, November 3rd. The specialty chemicals company reported $1.29 EPS for the quarter, beating the consensus estimate of $1.26 by $0.03. Innospec had a net margin of 6.60% and a return on equity of 9.22%. The firm had revenue of $473.60 million during the quarter, compared to the consensus estimate of $479.17 million. During the same period last year, the firm earned $1.12 EPS. The business’s quarterly revenue was up 7.2% compared to the same quarter last year. On average, research analysts anticipate that Innospec Inc. will post 5.01 EPS for the current year.

Innospec Announces Dividend

The business also recently announced a dividend, which will be paid on Wednesday, November 25th. Investors of record on Tuesday, November 17th will be given a $0.94 dividend. The ex-dividend date is Tuesday, November 17th. This represents a yield of 189.0%. Innospec’s payout ratio is 37.55%.

Hedge Funds Weigh In On Innospec

Hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. bought a new position in shares of Innospec during the 2nd quarter valued at about $356,596,000. Dimensional Fund Advisors LP boosted its stake in Innospec by 5.7% in the first quarter. Dimensional Fund Advisors LP now owns 1,242,089 shares of the specialty chemicals company’s stock worth $90,698,000 after buying an additional 66,967 shares in the last quarter. Assenagon Asset Management S.A. grew its position in Innospec by 17.2% during the third quarter. Assenagon Asset Management S.A. now owns 319,633 shares of the specialty chemicals company’s stock valued at $30,467,000 after acquiring an additional 46,851 shares during the last quarter. Western Standard LLC bought a new position in Innospec during the second quarter valued at approximately $19,276,000. Finally, Bank of America Corp DE purchased a new position in shares of Innospec during the second quarter worth approximately $19,187,000. 96.64% of the stock is currently owned by hedge funds and other institutional investors.

Innospec Company Profile

Innospec Inc (NASDAQ: IOSP) is a global specialty chemicals company that develops, manufactures and markets products used in the fuel, oilfield, personal care and industrial markets. The company serves customers through a portfolio of chemical additives, formulations and technical services designed to improve product performance, efficiency and reliability.

Innospec operates through businesses focused on fuel specialties, performance chemicals and oilfield services. Its fuel-related products include fuel additives for gasoline, diesel, marine and other applications, including detergents, lubricity improvers, cetane improvers and other performance-enhancing formulations.