The Mondelez International, Inc. (NASDAQ:MDLZ) bears won the day, but the reality is that the -0.22 points or -0.49 percent decline gave very little definitive technical indication of where the stock could be headed next. On 06 December, the shares traded at $44.25 with a heavy trade volume of 10.908 million shares. After opening the session at $44.38, the shares went as high as $44.39 and as low as $43.24, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $64.9 billion and now has 1.47 billion shares outstanding. Mondelez International, Inc. (MDLZ) stock has gained 3.61 percent of market value in 21 trading days.
MDLZ stock has a trailing 3-year beta of 0.78, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.22 a share in the trailing twelve months. The stock’s value has surged 3.39 percent year to date (YTD) against a rise of 2.93 percent in 12 month’s time. The company’s shares still trade -4.92 percent away from its 1-year high of $46.54 and 18.25 percent up from 52-week low of $37.42. The average consensus rating on the company is 2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.
Mondelez International, Inc. (MDLZ) will probably climb 9.79 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $56-month high price target. This represents a whopping 26.55 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $49, which represents a return potential of 10.73 percent when compared to the closing price of the stock of $44.25 on Thursday, December 06. The lowest price target for the stock is $43 — slightly more than -2.82 percent from MDLZ’s current share price.
History has shown that shares in Mondelez International, Inc. have gone up on 16 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. Investors will get their next glimpse of MDLZ’s Q4 earnings on February 13. Analysts are forecasting revenue to suffer decline of -2.6 percent to $6.78B in the fiscal fourth quarter, while earnings are seen soaring by nearly 10.53 percent to $0.63 per share. It earned $0.62 per share, better than the $0.61, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $6.29B, worse than the $6.31B analysts expected. Earnings are estimated to increase by 77.3 percent this year, 3.83 percent next year and continue to increase by 8.16 percent annually for the next 5 years.
Let’s take a look at some insider activity at Mondelez International, Inc. (NASDAQ:MDLZ) and see the pattern. The earliest insider trade took place on 09/14/2018. Brusadelli Maurizio parted with a total of 7.38 thousand shares of company at average share price of $43.74. The total for the sales was set at $322.84 thousand. After this transaction, the EVP and President AMEA account balance stood at 66.58 thousand shares. The stock grew 1.17 percent since that insider sale. On 09/12/2018, Myers Daniel P., EVP, Integrated Supply Chain, sold 27.96 thousand shares at a price per share of $43.44. This removed 1.21 million shares from the insider’s fortune and the stock saw a 1.86 percent rally in value since the news became public. This transaction left 86.03 thousand shares in the EVP, Integrated Supply Chain account.
On 03/09/2018, Director Trian Fund Management, L.P. performed a purchase transaction worth $45.54 million. This purchase at $44.27 each has added 1.03 million shares into the insider’s portfolio position. Meanwhile, shares have recorded -0.05 percent decrease since the transaction was reported. The insider now is left with 18.8 million shares remaining in the account. Trian Fund Management, L.P., who performs the Director job, sold 18.19 million shares for $793.31 million. The disposal occurred on 03/06/2018 was priced at $43.61 per share. The share price soared 1.47 percent since the reporting date. Trian Fund Management, L.P. now left with a stake of 17.77 million MDLZ stock worth $786.48 million after the insider selling.
The stock is currently hovering around the first support level of $43.53. Below this, the next support is placed in the zone of $42.81. Till the time, the MDLZ stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 54.15 on daily chart, which may remain a cause for concern. If the price breaks below $42.81 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $44.68 mark may result into a pull-back move towards $45.11 level.
Shares of Mondelez International, Inc. (MDLZ) are trading at a P/E ratio of 20.1 times earnings reported for the past 12 months. The industry MDLZ operates in has an average P/E of 20.85. Its P/E ratio went as low as 10.1X and as high as 42.03 over the 5-year span.Further, it is sporting a 2.48 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.78. 40.1 percent is the gross profit margin for Mondelez International, Inc. and operating margin sits at 13.5 percent. Along with this, the net profit margin is 13.4 percent.