Shares of engine and automotive maintenance products and services provider Valvoline Inc. (VVV) have surged 37% over the past 12 months. Recently, Valvoline partnered with EV maker Arrival and became its network service provider.
The move is part of Valvoline’s strategy to extend its preventive auto maintenance service model to EVs and hybrid vehicles. Valvoline’s upcoming earnings for the first quarter are expected on February 8.
Consensus estimates point to earnings per share of $0.45 as compared to the year-ago figure of $0.41. With these developments in mind, let us take a look at the changes in Valvoline’s key risk factors that investors should know.
According to the TipRanks Risk Factors tool, Valvoline’s top risk category is Finance & Corporate, contributing 23% (compared to a sector average of 35%) to the total 26 risks identified.
In its recent annual report, the company has added two key risk factors under the Finance & Corporate risk category.
Valvoline noted that its articles specify the Fayette County Circuit Court of the Commonwealth of Kentucky as the sole and exclusive forum for almost all disputes between Valvoline and its shareholders. This may deter lawsuits against Valvoline’s key personnel by shareholders.
Valvoline has announced the separation of its two business segments, Retail Services, and Global Products. The risk remains that this undertaking could be disruptive to the company’s business, lead to higher expenses, or fail to yield the desired benefits.
Hedge Fund Activity
According to TipRanks data, the Wall Street’s top hedge funds have increased holdings in Valvoline by 1.3 million shares in the last quarter, indicating a very positive hedge fund confidence signal in the stock based on activities of five hedge funds in the recent quarter.
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