Don’t Get Into Mondelez International, Inc. (NASDAQ:MDLZ) Shares For The Wrong Reasons

Taking into account all relevant factors, Mondelez International, Inc. (NASDAQ:MDLZ) scores 72% Buy on the technical side. The share price is also flashing a Buy from the Barchart TrendSpotter trading system. Investors starting out on a short-term path of investing should know that short terms indicators for MDLZ averaged 100% Buy with an average daily trading volume over the past 20 days at 5662471 shares. Those using medium-term investment strategies, the 50-day average daily volume remained almost 5554185 shares. It’s also important to note that the stock, whose average daily volume over the 100 days as of this piece was 5693608 shares, is signaling100% Buy for long term investors.

The stock is lingering around the initial support level of $54.37. After this, the following support is at the zone of $54.01. Up until the time the MDLZ stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 60.58 on the daily chart, and this may be a cause for concern. In case the price goes below $54.01 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $55.04 level may cause a pull-back move approaching $55.35 mark.

Mondelez International, Inc. (MDLZ) is most likely going to rise 10.67 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $66 as 12-month high price target. This represents a whopping 19.74 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $61, which means a return possibility of 10.67 percent in comparison with the closing price of the stock of $55.12 in recent trading session. The lowest price set for the stock is $55 which is just above -0.22 percent from MDLZ share’s price at the end of session.

Let’s take a glimpse at some insider activity at Mondelez International, Inc. (NASDAQ:MDLZ) and observe the pattern. The earliest insider trade happened on 09/06/2019. Gruber Vinzenz P. parted with a total of 40.38 thousand shares of the firm at average share price of $56.68. The total amount for the sale was set at $2.29 million. On completing this exchange, the EVP and President, Europe account balance was 112.14 thousand shares. The stock lost -3.23 percent from that insider sale. On 06/13/2019, Brusadelli Maurizio, EVP and President AMEA, did a sale of 39.88 thousand shares at a price of $54.52 per share. This got rid of 2.17 million shares from the insider’s fortune and the stock experienced a 0.61 percent rally in price since the news became public. This exchange saw 92.01 thousand shares get out from the EVP and President AMEA account. On 05/02/2019, EVP & General Counsel Pleuhs Gerhard W. recorded a sale transaction valued at $4.13 million. The sale at $51.57 a share has eliminated 80 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 6.36 percent increase since the transaction reporting date. The company insider is left with 133.31 thousand shares remaining in the account. Lorenzo Alejandro, who works as EVP & President, LA at the company, performed a sale of 26.35 thousand shares in a transaction worth $1.24 million. The disposal recorded on 03/05/2019 was priced at $46.94 per share. The stock price soared 16.85 percent since the transaction. Lorenzo Alejandro currently holds a stake of 59.32 thousand in MDLZ stock which is worth $3.27 million after the insider selling.

In the recent trading session, Mondelez International, Inc. (NASDAQ:MDLZ) shares gained 0.69% or 0.38 points to reach at $55.12 with a thin trading volume of 1.016 million shares. It opened the trading session at $54.53, the shares rose to $54.98 and dropped to $54.31, the range by which the price of stock traded the whole session. The company now has a market cap of $78.7 billion and currently has 1.44 billion outstanding shares. Mondelez International, Inc. (MDLZ) stock has accumulated 2.82 percent of market value in 21 trading days.

Stock analysts at Deutsche Bank, assumed coverage of shares of Mondelez International, Inc. (NASDAQ:MDLZ) with Hold recommendation, according to their opinion released on December 12. Analysts at Morgan Stanley issued an upgrade for the stock to Overweight from previous rating of Equal-Weight, in a research note that dated back to August 08.

MDLZ stock’s trailing 3-year beta is 0.75, 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 $2.67 share in the trailing 52 weeks. The stock’s value fallen -0.62 percent year to date (YTD) compared to a rise of 27.48 percent in 52 week’s period. The firm’s shares are still trading -2.82 percent below its 1-year high of $56.72 and 29.74 percent up from 52-week low of $42.49. 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.

Mondelez International, Inc. (MDLZ) shares are trading at a P/E ratio of 20.44 times earnings posted in the trailing 12 months. The industry MDLZ deals with has an average P/E of 24.43. Its P/B ratio is standing at 2.85X compared to the 7.06 industry average. It is additionally sporting a 3.1 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.45. Mondelez International, Inc. has a 39.4% gross profit margin, with its operating margin around 14.8%. Alongside this, the company’s net profit margin currently stands at 15.4%.

Past records have indicated that shares in Mondelez International, Inc. rose on 19 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 MDLZ’s Q4 earnings on January 29. Analysts are predicting revenue to climb 1 percent to $6.84B in the financial fourth quarter, while EPS will soar by about -4.76 percent to $0.6 per share. In the last quarter, it’s earnings of $0.64 per share came better than the $0.56737, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $6.36B, topping the $6.35B analysts had expected. Earnings are seen to rise by 25.8 percent this year, 7.33 percent in the coming year and the trend continues by 5.66 percent every year in the next 5 years.