The Mosaic Company (MOS): A Roller-Coaster Ride For Uninformed Investors

On November 29, 2019, The Mosaic Company (NYSE:MOS) shares gained 0.26% or 0.05 points to close at $19.05 with a thin trading volume of 1.775 million shares. It opened the trading session at $18.88, the shares rose to $19.12 and dropped to $18.84, the range by which the price of stock traded the whole day. The company now has a market cap of $7.26 billion and currently has 381.08 million outstanding shares. The Mosaic Company (MOS) stock has plunged -5.6 percent of market value in 21 trading days.

MOS stock’s trailing 3-year beta is 1.62, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was -$0.09 share in the trailing 52 weeks. The stock’s value fallen -34.78 percent year to date (YTD) compared to a decline of -46.06 percent in 52 week’s period. The firm’s shares are still trading -48.97 percent below its 1-year high of $37.33 and 9.74 percent up from 52-week low of $17.36. The average consensus ranking on the company is 2.3, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

The Mosaic Company (MOS) is most likely going to rise 38.79 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $44-month high price target. This represents a whopping 130.97 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $25, which means a return possibility of 31.23 percent in comparison with the closing price of the stock of $19.05 on November 29. The lowest price set for the stock is $18 — just above -5.51 percent from MOS share price now.

Past records have indicated that shares in The Mosaic Company rose on 23 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of MOS’s Q4 earnings on February 19. Analysts are predicting revenue to suffer decline of -17.9 percent to $2.07B in the financial fourth quarter, while EPS will soar by about -87.01 percent to $0.1 per share. In the last quarter, it earnings of $0.08 per share came worse than the $0.09024, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $2.52B, topping the $2.36B analysts had expected. Earnings are seen to rise by 21.8 percent this year, 183.14 percent in the coming year and the trend continues by -6.29 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at The Mosaic Company (NYSE:MOS) and observe the pattern. The earliest insider trade happened on 09/10/2019. MONAHAN WILLIAM T gathered a total of 2.36 thousand shares of the firm at average share price of $21.15. The total amount for the purchase was set at $49.91 thousand. On completing this exchange, the Director account balance was 39.24 thousand shares. The stock lost -9.93 percent from that insider purchase. On 08/21/2019, BEEBE CHERYL K, Director, did a purchase of 13 thousand shares at a price of $19.21 per share. This increased 249.69 thousand shares to the insider’s fortune and the stock experienced a -0.83 percent retreat in price since the news became public. This exchange saw 23.7 thousand shares get into the Director account.

On 05/10/2019, Director Koenig Emery N. recorded a purchase transaction valued at $50.03 thousand. The purchase at $23.95 a share has added 2.09 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed -20.46 percent decrease since the transaction reporting date. The company insider is left with 25.24 thousand shares remaining in the account. Isaacson Mark J., who works as SVP, Gen. Counsel & Corp. Sec. at the company, performed a purchase of 1 thousand shares in a transaction worth $23.55 thousand. The acquisition recorded on 05/10/2019 was priced at $23.55 per share. The stock price plunged -19.11 percent since the transaction. Isaacson Mark J. currently holds a stake of 20.06 thousand in MOS stock which is worth $382.18 thousand after the insider buying.

The stock is lingering around the initial support level of $18.89. After this, the following support is at the zone of $18.72. Up until the time the MOS stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 44.77 on the daily chart, and this may be a cause for concern. In case the price goes below $18.72 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $19.17 level may cause a pull-back move approaching $19.28 mark.

The industry MOS deals with has an average P/E of 19.3. Its P/B ratio is standing at 0.7X compared to the 1.3 industry average. It is additionally sporting a 0.8 on the Price-to-Sales ratio, compared to the industry’s P/S average of 1.4. The Mosaic Company has a 13.7% gross profit margin, with its operating margin around 3.8%. Alongside this, the company’s net profit margin currently stands at -0.4%.