DowDuPont Inc. (NYSE:DWDP) has been downgraded by Cowen on February 06 which now rates the stock as Market Perform compared with Outperform rating suggested in the past. Analysts at JP Morgan, shed their positive views on February 01 by lowering it fromOverweight to Neutral. The stock lost favor of Stephens analysts who expressed their lack of confidence in it using a downgrade from Overweight to Equal-Weight on October 19.
DowDuPont Inc. (DWDP) hit an intraday high Monday at $52.31. The shares finished at $52, after trading as low as $51.8 earlier in the session. It rose 0.56% in recent trade and currently has a stock-market value of $119.06B. Trading activity significantly weakened as the volume at ready counter decreased to 10,912,291 shares versus 12,906,645 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 12,205,354 shares. The stock is now 6.36% above against its bear-market low of $48.89 on December 26, 2018. It has retreated -42.54% since it’s 52-week high of $74.12 reached in February. Now the market price is down -23.76% on the year and down -2.77% YTD.
DWDP’s 50 day simple moving average (SMA 50) price is $54.61 and its 200-day simple moving average (SMA 200) price is $62.28. The company’s stock currently has a total float of 2.26B shares. Its weekly volatility is hovering around 2.16% and felt 2.37% volatility in price over a month. On the upside, the share price will test short term resistance at around $52.27. On a downside, the stock is likely to find some support, which begins at $51.76. The failure to get near-term support could push it to $51.53.
Separately, it has been reported that multiple insider activity took place at DowDuPont Inc. (DWDP). General Counsel-MatCo Kalil Charles J sold 100,645 shares for $312,329 in transaction occurred on 2018/08/27. After making this transaction, the General Counsel-MatCo owns a direct stake of 7,120,634 shares, worth $16,241,108, as per the last closing price. On 2018/08/08 Breen Edward D, CEO at DWDP, purchased 29,580 shares at an average price of $67.61 per share. The new stake is valued at $18,940,064.
Former Executive Chairman, Liveris Andrew N had divested 100,000 shares for $1,192,746 through a trade on 2018/06/12. Following this activity, the insider holds 6,957,000 shares worth $62,022,792 as of recent close. Wall Street’s most bullish DowDuPont Inc. (NYSE:DWDP) analysts are predicting the share price to blow past $90 per share during the next 12 months. The current median share price forecast by them is $66, suggesting that the stock could increase 26.92% in that time frame. The average price target of $67.32 calls for a nearly 29.46% increase in the stock price.
When looking at valuations, DowDuPont Inc. (DWDP) has a pricey P/E of 88.74x as compared to industry average of 18.26x. Moreover, it trades for 10.9 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.22x price/book and 1.47x price/sales. Compared to others, DowDuPont Inc. is in a different league with regards to profitability, having net margins of 2.6%. To put some perspective around this, the industry’s average net margin is 7.6%. DWDP’s ROE is 2.1%, which is also considerably worse than the industry’s ROE of 10.14%. It’s also very liquid in the near term, with a current ratio of 1.6. The stock has a debt/capital of 0.36.
DWDP last reported earnings on January 31, 2019 when it released Dec-18 results that exceeded expectations. The company raked in $0.88 per share, -24.14% change on the same period last year. That was better than consensus for $0.87. Revenue for the recent quarter stood at $20.1 billion, down 0% on last year and below the $20.92 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $19.97 billion to $20.55 billion, which should be compared with $22.79 billion generated last year. EPS is seen in a range of $0.84 to $0.97, against the $1.36 reported a year ago.