The Chemours Company (CC): Analysts Giving Thumbs Up or Thumbs Down?

Here’s how investors should make decisions about buying, holding or selling The Chemours Company (NYSE:CC) stock. On Thursday, shares of The Chemours Company (NYSE:CC) closed lower after an active session. The shares dropped -0.27 points or -0.99 percent at $26.88 with a heavy trade volume of 3.941 million shares. After opening the session at $26.71, the shares went as high as $26.88 and as low as $25.22, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $4.6 billion and now has 171.2 million shares outstanding. The Chemours Company (CC) stock has lost -19.18 percent of market value in 21 trading days.

CC stock has a trailing 3-year beta of 2.57, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $5.96 a share in the trailing twelve months. The stock’s value has fallen -46.3 percent year to date (YTD) against a decline of -45.48 percent in 12 month’s time. The company’s shares still trade -50.79 percent away from its 1-year high of $54.62 and -0.52 percent down from 52-week low of $27.02. The average consensus rating on the company is 2.2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

The Chemours Company (CC) will probably climb 69.9 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $58-month high price target. This represents a whopping 115.77 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $46, which represents a return potential of 71.13 percent when compared to the closing price of the stock of $26.88 on Thursday, December 06. The lowest price target for the stock is $36 — slightly more than 33.93 percent from CC’s current share price.

History has shown that shares in The Chemours Company have gone up on 6 different earnings reaction days and are predicted to add 0.06 percent when the company reports upcoming earnings. Investors will get their next glimpse of CC’s Q4 earnings on February 13. Analysts are forecasting revenue to suffer decline of -3.5 percent to $1.52B in the fiscal fourth quarter, while earnings are seen soaring by nearly -13.45 percent to $1.03 per share. It earned $1.49 per share, better than the $1.42, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $1.63B, worse than the $1.71B analysts expected. Earnings are estimated to increase by 47.9 percent this year, 2.32 percent next year and continue to increase by 1.5 percent annually for the next 5 years.

Let’s take a look at some insider activity at The Chemours Company (NYSE:CC) and see the pattern. The earliest insider trade took place on 12/03/2018. Brown Richard H gathered a total of 10 thousand shares of company at average share price of $28.6. The total for the purchase was set at $286 thousand. After this transaction, the Director account balance stood at 73.33 thousand shares. The stock lost -5.07 percent since that insider purchase. On 12/03/2018, Brown Richard H, Director, purchased 10 thousand shares at a price per share of $28.6. This added 286 thousand shares to the insider’s fortune and the stock saw a -5.07 percent retreat in value since the news became public. This transaction left 73.33 thousand shares in the Director account.

On 05/09/2018, President and CEO Vergnano Mark P performed a sale transaction worth $10.1 million. This sale at $50.47 each has eliminated 200.15 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -46.21 percent decrease since the transaction was reported. The insider now is left with 353.96 thousand shares remaining in the account. Newman Mark, who performs the SVP and CFO job, sold 43.68 thousand shares for $2.19 million. The disposal occurred on 05/08/2018 was priced at $50.04 per share. The share price plunged -45.74 percent since the reporting date. Newman Mark now left with a stake of 84.2 thousand CC stock worth $2.26 million after the insider selling.

The stock is currently hovering around the first support level of $25.77. Below this, the next support is placed in the zone of $24.67. Till the time, the CC stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 26.41 on daily chart, which may remain a cause for comfort. If the price breaks below $24.67 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $27.43 mark may result into a pull-back move towards $27.99 level.

Shares of The Chemours Company (CC) are trading at a P/E ratio of 4.74 times earnings reported for the past 12 months. The industry CC operates in has an average P/E of 23.55. Its P/E ratio went as low as 12.16X and as high as 578.88 over the 5-year span.Further, it is sporting a 0.68 on the Price-to-Sales ratio. Compare this with the industry average P/S of 175.53. 30.5 percent is the gross profit margin for The Chemours Company and operating margin sits at 18.6 percent. Along with this, the net profit margin is 16 percent.