Why This Time It’s Different for Mondelez International, Inc. (MDLZ)?

Analysts at Morgan Stanley, assumed coverage of Mondelez International, Inc. (NASDAQ:MDLZ) with Equal-Weight recommendation, according to their opinion released on September 17. Consumer Edge Research analysts have downgraded their rating of MDLZ stock from Outperform to Neutral in a separate flash note to investors on May 21. Analysts at Societe Generale issued an upgrade from Hold to Buy for the stock, in a research note that dated back to February 02.

In the latest fortnight, short interest in Mondelez International, Inc. (NASDAQ:MDLZ) stock jumped by 1.72%, indicating a significant rise in bearish sentiment. When it comes to determining how a name is viewed by investors, short interest is often a useful tool. The average analyst recommendations at 0 suggests selling these shares. Between December 14 and December 31, the total number of shorted shares amounted to 13.17 million shares. That was 223,188 more shares than the total of 12.94 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go down. Average daily volume for MDLZ at the December 31st settlement jumped to 10,133,680, as compared to 7,885,076 at the December 14th report. That brought days to cover to 1.299308, a 20.85% decrease from the 1.641529 days to cover recorded at the prior short interest data release.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Mondelez International, Inc. (NASDAQ:MDLZ)’s prospects. 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 lost -3.45 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 -2.79 percent retreat 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 -4.61 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 plunged -3.16 percent since the reporting date. Trian Fund Management, L.P. now left with a stake of 17.77 million MDLZ stock worth $750.58 million after the insider selling.

Mondelez International, Inc. (MDLZ) is expected to jump by 15.25 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 32.61 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $50, which represents a return potential of 18.4 percent when compared to the closing price of the stock of $42.23 on Friday, January 11. The lowest price target for the stock is $43 — slightly more than 1.82 percent from MDLZ’s current share price.

The shares are currently floating around the first support level of $42.03. Below this, the next support is placed in the zone of $41.84. Till the time, the MDLZ stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 52.83 on daily chart, which may remain a cause for concern. If the price breaks below $41.84 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $42.42 mark may result into a pull-back move towards $42.62 level.

MDLZ shares dropped -0.11 points or -0.26 percent on Friday to $42.23 with a light trade volume of 4.745 million shares. After opening the session at $42.3, the shares went as high as $42.42 and as low as $42.03, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $61.6 billion and now has 1.46 billion shares outstanding. Mondelez International, Inc. (MDLZ) stock has lost -4.48 percent of market value in 21 trading days.

MDLZ stock has a trailing 3-year beta of 0.83, 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 5.5 percent year to date (YTD) against a decline of -0.94 percent in 12 month’s time. The company’s shares still trade -9.26 percent away from its 1-year high of $46.54 and 12.85 percent up from 52-week low of $37.42. The average consensus rating on the company is 0, 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 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 2.36 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.