Innospec (NASDAQ:IOSP) Sees Unusually-High Trading Volume – Should You Buy?

Innospec Inc. (NASDAQ:IOSP) shares saw unusually-high trading volume on Monday . Approximately 131,503 shares traded hands during mid-day trading, an increase of 4% from the previous session’s volume of 127,023 shares.The stock last traded at $98.51 and had previously closed at $96.01.

Wall Street Analyst Weigh In

Separately, StockNews.com cut Innospec from a “buy” rating to a “hold” rating in a research report on Friday, March 14th.

Innospec Stock Performance

The firm has a market capitalization of $2.43 billion, a price-to-earnings ratio of 68.67 and a beta of 1.08. The company has a 50 day moving average price of $106.94 and a two-hundred day moving average price of $110.88.

Innospec (NASDAQ:IOSP) last issued its quarterly earnings results on Tuesday, February 18th. The specialty chemicals company reported $1.41 EPS for the quarter, topping the consensus estimate of $1.36 by $0.05. The company had revenue of $466.80 million during the quarter, compared to analyst estimates of $447.43 million. Innospec had a net margin of 1.93% and a return on equity of 12.27%. On average, equities analysts expect that Innospec Inc. will post 6.18 earnings per share for the current fiscal year.

Innospec declared that its Board of Directors has authorized a share buyback plan on Monday, March 10th that authorizes the company to repurchase $50.00 million in outstanding shares. This repurchase authorization authorizes the specialty chemicals company to repurchase up to 2% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s management believes its stock is undervalued.

Insider Activity at Innospec

In other news, Director Milton C. Blackmore sold 652 shares of the stock in a transaction dated Friday, February 21st. The shares were sold at an average price of $103.30, for a total value of $67,351.60. Following the completion of the sale, the director now directly owns 8,376 shares in the company, valued at $865,240.80. This represents a 7.22 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, VP Philip John Boon sold 3,754 shares of the business’s stock in a transaction that occurred on Friday, February 21st. The stock was sold at an average price of $103.30, for a total value of $387,788.20. Following the transaction, the vice president now owns 20,079 shares in the company, valued at approximately $2,074,160.70. This represents a 15.75 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 7,696 shares of company stock valued at $794,853. 1.52% of the stock is owned by corporate insiders.

Institutional Trading of Innospec

A number of hedge funds and other institutional investors have recently modified their holdings of IOSP. Murphy & Mullick Capital Management Corp acquired a new position in shares of Innospec during the 4th quarter valued at about $106,000. Covestor Ltd lifted its position in Innospec by 13.9% in the fourth quarter. Covestor Ltd now owns 967 shares of the specialty chemicals company’s stock valued at $106,000 after buying an additional 118 shares during the last quarter. Blue Trust Inc. boosted its stake in Innospec by 54.2% during the fourth quarter. Blue Trust Inc. now owns 1,201 shares of the specialty chemicals company’s stock worth $136,000 after buying an additional 422 shares during the period. KBC Group NV increased its position in shares of Innospec by 82.3% during the fourth quarter. KBC Group NV now owns 1,236 shares of the specialty chemicals company’s stock valued at $136,000 after acquiring an additional 558 shares during the last quarter. Finally, Smartleaf Asset Management LLC raised its stake in shares of Innospec by 91.9% in the 4th quarter. Smartleaf Asset Management LLC now owns 1,802 shares of the specialty chemicals company’s stock valued at $198,000 after acquiring an additional 863 shares during the period. 96.64% of the stock is owned by institutional investors and hedge funds.

About Innospec

Innospec Inc develops, manufactures, blends, markets, and supplies specialty chemicals in the United States, rest of North America, the United Kingdom, rest of Europe, and internationally. The company's Fuel Specialties segment offers a range of specialty chemical products that are used as additives in additives in diesel, jet, marine, fuel oil and other fuels.