DuPont de Nemours, Inc. (DD) Leaves Investors Bruised, But Is It Still Worth Buying?

On December 03, 2019, DuPont de Nemours, Inc. (NYSE:DD) shares lost -3.53% or -2.29 points to close at $62.57 with a heavy trading volume of 5.293 million shares. It opened the trading session at $64.2, the shares rose to $64.2 and dropped to $62.49, the range by which the price of stock traded the whole day. The company now has a market cap of $46.9 billion and currently has 749.95 million outstanding shares. DuPont de Nemours, Inc. (DD) stock has plunged -10.15 percent of market value in 21 trading days.

DD 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 -$0.56 share in the trailing 52 weeks. The stock’s value fallen -17.77 percent year to date (YTD) compared to a decline of -23.98 percent in 52 week’s period. The firm’s shares are still trading -26.96 percent below its 1-year high of $85.66 and -0.48 percent down from 52-week low of $62.87. The average consensus ranking on the company is 2, 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 buy.

DuPont de Nemours, Inc. (DD) is most likely going to rise 29.46 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $95-month high price target. This represents a whopping 51.83 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $81, which means a return possibility of 29.46 percent in comparison with the closing price of the stock of $62.57 on December 03. The lowest price set for the stock is $68 — just above 8.68 percent from DD share price now.

Past records have indicated that shares in DuPont de Nemours, Inc. declined on 18 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 DD’s Q4 earnings on February 01. Analysts are predicting revenue to suffer decline of -73.8 percent to $5.27B in the financial fourth quarter, while EPS will soar by about -31.21 percent to $0.97 per share. In the last quarter, it earnings of $2.64 per share came better than the $0.82231, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $5.43B, missing the $5.44B analysts had expected. Earnings are seen to rise by 477.4 percent this year, 12.11 percent in the coming year and the trend continues by 6.14 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at DuPont de Nemours, Inc. (NYSE:DD) and observe the pattern. The earliest insider trade happened on 08/17/2017. Cachinero Benito parted with a total of 10.62 thousand shares of the firm at average share price of $81.67. The total amount for the sale was set at $867.42 thousand. On completing this exchange, the SVP – Human Resources account balance was 31.2 thousand shares. The stock lost -20.58 percent from that insider sale. On 05/01/2017, Collins James C. Jr., Executive Vice President, did a sale of 54.73 thousand shares at a price of $79.7 per share. This got rid of 4.36 million shares from the insider’s fortune and the stock experienced a -18.62 percent retreat in price since the news became public. This exchange saw 142.98 thousand shares get out from the Executive Vice President account.

On 03/28/2017, Executive Vice President & CFO FANANDAKIS NICHOLAS C recorded a sale transaction valued at $3.68 million. The sale at $81.93 a share has eliminated 44.92 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -20.83 percent decrease since the transaction reporting date. The company insider is left with 157.57 thousand shares remaining in the account. Doyle Christopher Marc, who works as EVP at the company, performed a sale of 5.42 thousand shares in a transaction worth $376.99 thousand. The disposal recorded on 08/26/2016 was priced at $69.53 per share. The stock price plunged -6.72 percent since the transaction. Doyle Christopher Marc currently holds a stake of 80.75 thousand in DD stock which is worth $5.05 million after the insider selling.

The stock is lingering around the initial support level of $61.97. After this, the following support is at the zone of $61.38. Up until the time the DD stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 32.08 on the daily chart, and this may be a cause for comfort. In case the price goes below $61.38 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $63.68 level may cause a pull-back move approaching $64.8 mark.

DuPont de Nemours, Inc. (DD) shares are trading at a P/E ratio of 16.5 times earnings posted in the trailing 12 months. The industry DD deals with has an average P/E of 27.5. Its P/B ratio is standing at 1.1X compared to the 1.5 industry average. It is additionally sporting a 0.6 on the Price-to-Sales ratio, compared to the industry’s P/S average of 1.1. DuPont de Nemours, Inc. has a 28% gross profit margin, with its operating margin around 0.2%. Alongside this, the company’s net profit margin currently stands at 2%.