NewMarket falls 8.0% after third-quarter earnings and dividend hike

What happened

NewMarket (NEU) fell 8.0% on October 29, 2026, because of its third-quarter results and a dividend increase. The company reported third-quarter 2026 net income of $124.1 million, or $13.50 per share, and its board approved a quarterly common-stock dividend of $3.25 per share, an increase of $0.25, according to Business Wire. Trading opened 1.9% below the previous close and the stock closed at $803.07 on a session when the S&P 500 fell 0.3%.

How big was the move

The stock fell 8.0%, a move sized at 5.3 times a typical daily move for this stock, and trading volume was 1.9 times its 20-day average. Over the last five sessions the stock fell 8.4% while the S&P 500 over five sessions rose 0.7% and the Basic Materials sector median on the day rose 0.1%, putting the stock 8.2 percentage points worse than the sector median. NewMarket’s market value was $8.01 billion on the session. In the past five years the stock had 6 sessions with a decline of at least 8.0%; twenty trading days later the median result was a decline of 0.2%, and 3 of 6 were higher.

The technical picture

The stock was 9.5% below its 20-day moving average and 10.3% below its 50-day moving average, while 5.4% above its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend, and the stock had been above the 200-day average for 112 consecutive trading days. The Relative Strength Index (14 days) was 22 (below 30, a level often called oversold) and the stock was 18.2% below the 52-week high. Over one month the stock fell 10.5% and over three months it fell 5.5%.

The technicals show a short-term break from an otherwise longer-term uptrend: the stock remains above its 200-day average but has pulled back sharply from shorter moving averages. Volatility was muted by historical standards, with 24% annualized over 60 days, lower than 60% of its own readings over five years, and the share price movement this session was well outside a typical daily range.

Fundamentals and valuation

For the four quarters through September 30, 2026, revenue was $2.77 billion, which grew 0.9% from a year earlier, and diluted earnings per share were $49.22, which rose 4.0% from a year earlier. Gross margin was 31.7% (a year earlier: 31.9%), operating margin was 20.2% (a year earlier: 20.6%) and free-cash-flow margin was 1.0%. Return on invested capital was 13.3% and the balance sheet showed net debt of 1.1 times EBITDA. Share count over one year decreased by 2.2%.

Valuation by the price-to-earnings measure stood at 16.3 times trailing earnings, higher than 81% of its own readings over the past five years (five-year median: 13.6 times earnings). Free-cash-flow yield was 0.4%. PromtFinance scores ranked the company 40 for Value (Weak), 29 for Growth (Very weak), 58 for Quality (Neutral), 72 for Momentum (Positive) and 91 for Stability (Exceptional). Those results point to steady profitability and balance-sheet strength but stretched valuation and weak growth metrics relative to peers.

Earnings and analyst expectations

NewMarket’s last report was October 28, 2026, with earnings per share of $13.50. The company published prepared remarks for its Q3 2026 earnings call and reported third-quarter 2026 net income of $124.1 million, according to Business Wire and Seeking Alpha. The typical two-day reaction after recent reports was that the stock fell 0.6%.

Analysts numbering four provide a consensus rating of Hold and 0% of those analysts rate the stock Buy or Strong Buy. The next report is scheduled for February 3, 2027. The combination of a dividend increase and a mixed quarter — modest revenue growth, slightly higher EPS but small free-cash-flow margin — helps explain the session’s sharp price response despite an overall solid return on invested capital.

What to watch

• Quarterly common-stock dividend of $3.25 per share payable January 1, 2027
• Next earnings report on February 3, 2027
• Price to trailing earnings at 16.3 times trailing earnings
• Relative Strength Index (14 days) at 22 (below 30)
• Trading volume at 1.9 times its 20-day average