Stock analysts at Morgan Stanley cut their rating on shares of Dow Inc. (NYSE:DOW) from Overweight to a new rating of Equal-Weight in their opinion released on December 02. BMO Capital Markets analysts again handed out a Market Perform rating to DOW shares but they lifted target price for the firm in a flash note to investors on October 25. The price target has been raised from $51 to the new $53. BMO Capital Markets, analysts launched coverage of DOW shares with a Market Perform recommendation, according to their flash note to investors on October 25. Analysts at BofA/Merrill downgraded the company stock to a Underperform call from its previous Neutral stance, in a flash note that dated back to August 16.
Let’s take a glimpse at some insider activity at Dow Inc. (NYSE:DOW) and observe the pattern. The earliest insider trade happened on 11/26/2019. Edmonds Ronald C parted with a total of 10 thousand shares of the firm at average share price of $55.64. The total amount for the sale was set at $556.4 thousand. On completing this exchange, the Controller and Vice President account balance was 37.56 thousand shares. The stock lost -4.46 percent from that insider sale. On 08/08/2019, Yohannes Daniel, Director, did a purchase of 1 thousand shares at a price of $46.71 per share. This increased 46.71 thousand shares to the insider’s fortune and the stock experienced a 13.81 percent rally in price since the news became public. This exchange saw 5.1 thousand shares get into the Director account. On 08/08/2019, Director BUSH WESLEY G recorded a purchase transaction valued at $233.2 thousand. The purchase at $46.64 a share has added 5 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed 13.98 percent increase since the transaction reporting date. The company insider is left with 9.02 thousand shares remaining in the account. FETTIG JEFF M, who works as Director at the company, performed a purchase of 30 thousand shares in a transaction worth $1.38 million. The acquisition recorded on 08/02/2019 was priced at $46 per share. The stock price soared 15.57 percent since the transaction. FETTIG JEFF M currently holds a stake of 48.72 thousand in DOW stock which is worth $2.59 million after the insider buying.
The stock is lingering around the initial support level of $52.78. After this, the following support is at the zone of $52.41. Up until the time the DOW stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 52.19 on the daily chart, and this may be a cause for concern. In case the price goes below $52.41 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $53.64 level may cause a pull-back move approaching $54.13 mark.
On December 02, 2019, Dow Inc. (NYSE:DOW) shares lost -0.39% or -0.21 points to close at $53.16 with a thin trading volume of 3.35 million shares. It opened the trading session at $53, the shares rose to $53.75 and dropped to $52.89, the range by which the price of stock traded the whole day. The company now has a market cap of $40.1 billion and currently has 754.14 million outstanding shares. Dow Inc. (DOW) stock has accumulated 5.29 percent of market value in 21 trading days.
DOW stock’s trailing 3-year beta is 0, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $1.89 share in the trailing 52 weeks. The stock’s value surged 6.75 percent year to date (YTD) compared to a decline of 0 percent in 52 week’s period. The firm’s shares are still trading -12.16 percent below its 1-year high of $60.52 and 31.45 percent up from 52-week low of $40.44. The average consensus ranking on the company is 2.6, 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.
Dow Inc. (DOW) shares are trading at a P/E ratio of 14.8 times earnings posted in the trailing 12 months. The industry DOW deals with has an average P/E of 28. Its P/B ratio is standing at 2.3X compared to the 1.6 industry average. It is additionally sporting a 0.7 on the Price-to-Sales ratio, compared to the industry’s P/S average of 1.1. Dow Inc. has a 16% gross profit margin, with its operating margin around 4.9%. Alongside this, the company’s net profit margin currently stands at 3.9%.
Past records have indicated that shares in Dow Inc. rose on 16 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.