Why This Time It’s Different for DowDuPont Inc. (DWDP)?

Analysts at Stephens cut their rating on shares of DowDuPont Inc. (NYSE:DWDP) from Overweight to Equal-Weight in their opinion released on October 19. Analysts at Nomura downgraded the stock to a Neutral call from its previous Buy stance, in a research note that dated back to September 26.

By watching the trading activity of corporate insiders, it will become easier to get a sense of DowDuPont Inc. (NYSE:DWDP)’s prospects. The earliest insider trade took place on 08/27/2018. Kalil Charles J parted with a total of 100.65 thousand shares of company at average share price of $70.75. The total for the sales was set at $7.12 million. After this transaction, the General Counsel-MatCo account balance stood at 312.33 thousand shares. The stock lost -20.16 percent since that insider sale. On 08/08/2018, Breen Edward D, CEO, purchased 29.58 thousand shares at a price per share of $67.61. This added 2 million shares to the insider’s fortune and the stock saw a -16.45 percent retreat in value since the news became public. This transaction left 364.23 thousand shares in the CEO account. On 06/12/2018, Former Executive Chairman Liveris Andrew N performed a sale transaction worth $6.96 million. This sale at $69.57 each has eliminated 100 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -18.8 percent decrease since the transaction was reported. The insider now is left with 1.19 million shares remaining in the account. Liveris Andrew N, who performs the Former Executive Chairman job, sold 268.41 thousand shares for $18.5 million. The disposal occurred on 06/07/2018 was priced at $68.94 per share. The share price plunged -18.06 percent since the reporting date. Liveris Andrew N now left with a stake of 1.19 million DWDP stock worth $66.7 million after the insider selling.

DowDuPont Inc. (DWDP) is expected to jump by 33.1 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $90-month high price target. This represents a whopping 60.94 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $75, which represents a return potential of 34.12 percent when compared to the closing price of the stock of $55.92 on Thursday, December 06. The lowest price target for the stock is $63 — slightly more than 12.66 percent from DWDP’s current share price.

The shares are currently floating around the first support level of $54.47. Below this, the next support is placed in the zone of $53.03. Till the time, the DWDP stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 41.12 on daily chart, which may remain a cause for concern. If the price breaks below $53.03 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $56.64 mark may result into a pull-back move towards $57.37 level.

DWDP shares dropped -0.57 points or -1.01 percent on Thursday to $55.92 with a heavy trade volume of 14.769 million shares. After opening the session at $55.28, the shares went as high as $55.92 and as low as $53.75, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $128 billion and now has 2.3 billion shares outstanding. DowDuPont Inc. (DWDP) stock has lost -2.97 percent of market value in 21 trading days.

DWDP stock has a trailing 3-year beta of 0, 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 $0.47 a share in the trailing twelve months. The stock’s value has fallen -21.48 percent year to date (YTD) against a decline of -21.83 percent in 12 month’s time. The company’s shares still trade -27.45 percent away from its 1-year high of $77.08 and 8.96 percent up from 52-week low of $51.32. The average consensus rating on the company is 1.9, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of DowDuPont Inc. (DWDP) are trading at a P/E ratio of 122.23 times earnings reported for the past 12 months. The industry DWDP operates in has an average P/E of 20.77. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 1.49 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.9. 22 percent is the gross profit margin for DowDuPont Inc. and operating margin sits at 2.6 percent. Along with this, the net profit margin is 2.4 percent.

DWDP will be showing off its Q4 earnings on January 31. Analysts are forecasting revenue to climb 5.2 percent to $21.1B in the next fiscal quarter, while earnings are seen soaring by nearly 9.88 percent to $0.89 per share. History has shown that shares in DowDuPont Inc. have gone down on 6 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.74 per share, better than the $0.71, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $20.1B, worse than the $20.2B analysts expected. Earnings are estimated to increase by -92 percent this year, 15.02 percent next year and continue to increase by 7 percent annually for the next 5 years.