Insider Concerns Just Created a Buying Opportunity in Dana Incorporated (DAN)

On 13 March, shares of Dana Incorporated (NYSE:DAN) closed lower after a volatile session. The shares dropped -0.46 points or -2.43 percent at $18.45 with a heavy trade volume of 2.924 million shares. After opening the session at $19.03, the shares went as high as $19.09 and as low as $18.415, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $2.7 billion and now has 146.55 million shares outstanding. Dana Incorporated (DAN) stock has gained 10.35 percent of market value in 21 trading days.

DAN stock has a trailing 3-year beta of 1.89, 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 $2.91 a share in the trailing twelve months. The stock’s value has surged 35.36 percent year to date (YTD) against a decline of -29.42 percent in 12 month’s time. The company’s shares still trade -32.19 percent away from its 1-year high of $27.21 and 45.91 percent up from 52-week low of $12.65. 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.

Dana Incorporated (DAN) will probably climb 21.03 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $24-month high price target. This represents a whopping 30.08 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $22.5, which represents a return potential of 21.95 percent when compared to the closing price of the stock of $18.45 on Wednesday, March 13. The lowest price target for the stock is $20 — slightly more than 8.4 percent from DAN’s current share price.

History has shown that shares in Dana Incorporated have gone up on 19 different earnings reaction days and are predicted to add 0.05 percent when the company reports upcoming earnings.

The stock is currently hovering around the first support level of $18.21. Below this, the next support is placed in the zone of $17.98. Till the time, the DAN stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 48.39 on daily chart, which may remain a cause for concern. If the price breaks below $17.98 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $18.89 mark may result into a pull-back move towards $19.33 level.

Shares of Dana Incorporated (DAN) are trading at a P/E ratio of 6.49 times earnings reported for the past 12 months. The industry DAN operates in has an average P/E of 15.94. Its P/E ratio went as low as 4.35X and as high as 16.16 over the 5-year span.Further, it is sporting a 0.33 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.45. 14.3 percent is the gross profit margin for Dana Incorporated and operating margin sits at 7.1 percent. Along with this, the net profit margin is 5.2 percent.