Bull’s Eye Report: Corning Incorporated (GLW)

Will Corning Incorporated (NYSE:GLW) rip to new highs anytime soon? Who knows, but much of it depends on what analysts believe and what action the company’s insiders pursue. The stock closed higher on 12 February. The shares accumulated 0.66 points or 1.98 percent at $34.02 with a light trade volume of 4.922 million shares. After opening the session at $33.58, the shares went as high as $34.21 and as low as $33.52, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $27.1 billion and now has 796.09 million shares outstanding. Corning Incorporated (GLW) stock has gained 13.21 percent of market value in 21 trading days.

GLW stock has a trailing 3-year beta of 1.16, 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 $1.05 a share in the trailing twelve months. The stock’s value has surged 12.61 percent year to date (YTD) against a rise of 18.25 percent in 12 month’s time. The company’s shares still trade -6.95 percent away from its 1-year high of $36.56 and 30.29 percent up from 52-week low of $26.11. The average consensus rating on the company is 2.3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Corning Incorporated (GLW) will probably climb 5.26 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $40 price as 12-month high target. This represents a whopping 17.58 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $36.5, which represents a return potential of 7.29 percent when compared to the closing price of the stock of $34.02 on Tuesday, February 12. The lowest price target for the stock is $31 — slightly more than -8.88 percent from GLW’s current share price.

History has shown that shares in Corning Incorporated have gone down on 19 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings. Investors will get their next glimpse of GLW’s Q1 earnings on April 23. Analysts are forecasting revenue to climb 12.3 percent to $2.82B in the fiscal first quarter, while earnings are seen soaring by nearly 29.03 percent to $0.4 per share. It earned $0.59 per share, better than the $0.57, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $3.08B, better than the $3.01B analysts expected. Earnings are estimated to increase by -117.5 percent this year, 10.96 percent next year and continue to increase by 12.4 percent annually for the next 5 years.

Let’s take a look at some insider activity at Corning Incorporated (NYSE:GLW) and see the pattern. The earliest insider trade took place on 01/30/2019. Morse David L parted with a total of 35.7 thousand shares of company at average share price of $33.71. The total for the sales was set at $1.2 million. After this transaction, the Executive Vice President account balance stood at 36.45 thousand shares. The stock grew 0.92 percent since that insider sale. On 12/19/2018, Mcrae Lawrence D, Vice Chairman & Corp. Dev. Off, sold 20 thousand shares at a price per share of $30.68. This removed 613.6 thousand shares from the insider’s fortune and the stock saw a 10.89 percent rally in value since the news became public. This transaction left 137.1 thousand shares in the Vice Chairman & Corp. Dev. Off account.

On 11/30/2018, Executive Vice President Morse David L performed a sale transaction worth $969.66 thousand. This sale at $32.16 each has eliminated 30.15 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 5.78 percent increase since the transaction was reported. The insider now is left with 36.45 thousand shares remaining in the account. Steverson Lewis A, who performs the Senior Vice President job, sold 12.58 thousand shares for $395.8 thousand. The disposal occurred on 11/26/2018 was priced at $31.47 per share. The share price soared 8.1 percent since the reporting date. Steverson Lewis A now left with a stake of 0 thousand GLW stock worth $0 thousand after the insider selling.

The stock is currently hovering around the first support level of $33.62. Below this, the next support is placed in the zone of $33.23. Till the time, the GLW stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 65.5 on daily chart, which may remain a cause for concern. If the price breaks below $33.23 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $34.31 mark may result into a pull-back move towards $34.61 level.

Shares of Corning Incorporated (GLW) are trading at a P/E ratio of 31.79 times earnings reported for the past 12 months. The industry GLW operates in has an average P/E of 19.03. Its P/E ratio went as low as 7.51X and as high as 26.67 over the 5-year span.Further, it is sporting a 2.4 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.81. 39.5 percent is the gross profit margin for Corning Incorporated and operating margin sits at 12.4 percent. Along with this, the net profit margin is -8.6 percent.