Bullish Move: F. Quinn Stepan, Jr. Shows Confidence, Acquires $135K In Stepan Stock

F. Quinn Stepan, Jr., Director at Stepan SCL, reported an insider buy on May 14, according to a new SEC filing.

What Happened: Jr. made a significant move by purchasing 2,500 shares of Stepan as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction's total worth stands at $135,655.

In the Thursday's morning session, Stepan's shares are currently trading at $54.61, experiencing a down of 0.0%.

All You Need to Know About Stepan

Stepan Co manufactures and sells a variety of chemicals and chemical-based products. The company organizes itself into three segments based on product type. The surfactants segment, which generates the majority of revenue, sells cleaning agents used in detergents, shampoos, body wash, fabric softeners, toothpastes, and other personal-care products. The polymers segment sells polyurethane used to manufacture rigid foam for thermal insulation, as well as phthalic anhydride used to make plastic components for the construction, automotive, and boating industries. The specialty products segment sells chemicals used in food and flavoring. The majority of Stepan's revenue comes from the United States, followed by France, Poland, the United Kingdom, Brazil, Mexico, and other countries.

Financial Insights: Stepan

Revenue Growth: Stepan's remarkable performance in 3 months is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 7.59%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Materials sector.

Exploring Profitability:

• Gross Margin: With a low gross margin of 12.72%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): With an EPS below industry norms, Stepan exhibits below-average bottom-line performance with a current EPS of 0.86.

Debt Management: With a below-average debt-to-equity ratio of 0.6, Stepan adopts a prudent financial strategy, indicating a balanced approach to debt management.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The P/E ratio of 22.29 is lower than the industry average, implying a discounted valuation for Stepan's stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.56 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Stepan's EV/EBITDA ratio, lower than industry averages at 9.12, indicates attractively priced shares.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Key in Investment Decisions

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Transaction Codes Worth Your Attention

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Stepan's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.