The Chemours Company (CC) Stock Hits $26.88: Is It Still In Bear Zone?

For this quarter, Wall Street analysts forecast The Chemours Company (CC) revenue in a range of $1.47 billion to $1.57 billion, which should be compared with $1.7 billion generated last year. EPS is seen in a range of $0.9 to $1.13, against the $1.12 reported a year ago.The shares have dropped -22.3% since the company’s last earnings report. Over the past 12 fiscal quarters, The Chemours Company (NYSE:CC) has topped consensus earnings estimates in 9 quarters (75%), missed earnings in 3 quarters (25%), whereas at 0 occasion EPS met analyst expectations. CC last reported earnings on November 01, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $1.49 per share, -68.7% change on the same period last year. That was better than consensus for $1.42. Revenue for the recent quarter stood at $1.63 billion, up 3% on last year and below the $1.71 billion predicted by analysts.

CC’s 50 day simple moving average (SMA 50) price is $33.62 and its 200-day simple moving average (SMA 200) price is $43.89. The company’s stock currently has a total float of 167.9M shares. Its weekly volatility is hovering around 4.97% and felt 4.42% volatility in price over a month. On the upside, the share price will test short term resistance at around $27.43. On a downside, the stock is likely to find some support, which begins at $25.77. The failure to get near-term support could push it to $24.67.

Separately, it has been reported that multiple insider activity took place at The Chemours Company (CC). Director Brown Richard H acquired 10,000 shares for $73,334 in transaction occurred on 2018/12/03. After making this transaction, the Director owns a direct stake of 286,000 shares, worth $1,971,218, as per the last closing price. On 2018/12/03 Brown Richard H, Director at CC, purchased 10,000 shares at an average price of $28.6 per share. The new stake is valued at $1,971,218.

President and CEO, Vergnano Mark P had divested 200,151 shares for $353,961 through a trade on 2018/05/09. Following this activity, the insider holds 10,101,621 shares worth $9,514,472 as of recent close. Wall Street’s most bullish The Chemours Company (NYSE:CC) analysts are predicting the share price to blow past $58 per share during the next 12 months. The current median share price forecast by them is $46, suggesting that the stock could increase 71.13% in that time frame. The average price target of $45.67 calls for a nearly 69.9% increase in the stock price.

It had seen a negative analyst call from Citigroup, which downgraded the stock from Buy to Neutral on November 02. Analysts at RBC Capital Mkts, started covering the stock on July 18 with a Outperform rating. Analysts at Morgan Stanley, made their first call about the stock on January 30, recommending it is Equal-Weight. Goldman analysts came out with bearish views on December 06 when the call was made. They think the stock is now Neutral compared to to their prior call for Buy.

When looking at valuations, The Chemours Company (CC) has a cheap P/E of 4.51x as compared to industry average of 23.55x. Moreover, it trades for 4.65 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 4.16x price/book and 0.68x price/sales. Compared to others, The Chemours Company is in a different league with regards to profitability, having net margins of 16%. To put some perspective around this, the industry’s average net margin is 9.47%. CC’s ROE is 107.8%, which is also considerably better than the industry’s ROE of 6.65%. It’s also very liquid in the near term, with a current ratio of 2. The stock has a debt/capital of 3.51.

The Chemours Company (NYSE:CC) shares went down -0.99% in Thursday’s session, putting the price tag at $26.88 plus $4.6B in market capitalization. Earlier in the session, the stock traded between $25.22 and $26.88. Trading activity significantly improved as the volume at ready counter increased to 3,940,684 shares versus 1,881,630 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,716,785 shares. The stock is now -0.52% above against its bear-market low of $27.02 on December 06, 2018. It has retreated -103.2% since it’s 52-week high of $54.62 reached in January. Now the market price is down -45.48% on the year and down -46.3% YTD.