DowDuPont Inc. (DWDP): The Insiders Are Selling, Are You?

With 101.16 sell/buy ratio, DowDuPont Inc. (NYSE:DWDP) experienced more insider selling than insider buying over the last three months. Could this be a sign for outside investors to start selling as well? DWDP recorded 6 sales on the open market in the last three months. They sold nearly 111,483 shares while purchases amounted to 1,102 shares that period. Looking even further back to 12 months, corporate insiders offloaded 1,601,537 shares when buyers snapped up 209,730 shares. The 12-month’s totals signify about a 7.64-to-1 sell/buy ratio.

Kalil Charles J parted with a total of 100.65 thousand shares of DowDuPont Inc. (DWDP) at average share price of $70.75. This insider trade in the company took place on 08/27/2018. 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 -21.87 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 -18.24 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 -20.54 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 -19.81 percent since the reporting date. Liveris Andrew N now left with a stake of 1.19 million DWDP stock worth $65.93 million after the insider selling.

The 12-month median price target for DowDuPont Inc. (DWDP) assigned by the analysts stands at $71, which represents a return potential of 28.44 percent when compared to the closing price of the stock of $55.28 on Friday, January 11. The lowest price target for the stock is $62 — slightly more than 12.16 percent from DWDP’s current share price. The stock will probably climb 32.29 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 62.81 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 53.43 on daily chart, which may remain a cause for concern. If the price breaks below $54.22 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $55.77 mark may result into a pull-back move towards $56.25 level. The stock is currently hovering around the first support level of $54.75. Below this, the next support is placed in the zone of $54.22. Till the time, the DWDP stock trades above this level, bulls have nothing to fear.

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.

On 11th of January, DowDuPont Inc. (NYSE:DWDP) shares ended lower after a volatile session. The shares dropped -0.4 points or -0.72 percent at $55.28 with a light trade volume of 7.155 million shares. After opening the session at $55.24, the shares went as high as $55.7249 and as low as $54.71, 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 2.31 billion shares outstanding. DowDuPont Inc. (DWDP) stock has gained 3.79 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 surged 3.37 percent year to date (YTD) against a decline of -25.5 percent in 12 month’s time. The company’s shares still trade -28.28 percent away from its 1-year high of $77.08 and 13.07 percent up from 52-week low of $48.89. 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.