Capital Research & Management Co.. recently announced the acquisition of new stake in Dow Inc. (NYSE:DOW). The institutional investor has increased its shareholding in the Basic Materials company by 43.70% to 42.1 million shares with purchase of 12.8 million shares. This fresh investment now brings its stake to 5.68% valued currently at $1.73 billion. In addition, SSgA Funds Management, Inc. raised its holdings by 1.57 million to 37.62 million shares. And Capital Research & Management Co.. has lifted its position by 77.69% or 12.99 million shares – to 29.72 million shares.
With over 5.43 million Dow Inc. (DOW) shares trading Tuesday and a closing price of $47.27 on the day, the dollar volume was approximately $256.52 million. The shares have shown a positive weekly performance of 3.69% and its price on 09/01/20 gained nearly 4.77%. Currently, there are 741.12M common shares owned by the public and among those 740.19M shares have been available to trade.
An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 22 analysts who have offered their price forecasts for DOW have a consensus price objective of $44.20. The analysts have set the share’s price value over the next 12 months at a high of $55.00 and a low of $36.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Dow Inc. stock is 2.70 for the next 12 months. The average price target is -10.75% below its last price level and a downside to the estimated low will see the stock lose -31.31% over that period. But an upside of 14.05% will see the stock hit the forecast high price target while mean target price for the stock is $44.50.
Insiders at the company have transacted a total of 68 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 37 of these insider trades were purchases, accounting for 316,124 shares. Insider sales of the common stock occurred on 31 occasions, with total insider shares sold totaling 253,027 shares.
The top 3 mutual fund holders in Dow Inc. are Washington Mutual Investors Fund, Vanguard Total Stock Market Index, and Capital Income Builder. Washington Mutual Investors Fund owns 26.34 million shares of the company’s stock, all valued at over $1.08 billion. The company bought an additional 5.66 million shares recently to bring their total holdings to about 3.55% of the shares outstanding. Vanguard Total Stock Market Index sold 49469.0 shares to see its total holdings shrink to 21.12 million shares valued at over $867.05 million and representing 2.85% of the shares outstanding. Capital Income Builder bought 6.76 million shares to bring its total holdings to over 18.28 million shares at a value of $750.73 million. Capital Income Builder now owns shares totaling to 2.47% of the shares outstanding.
Shares of Dow Inc. (NYSE: DOW) opened at $44.79, down -$0.33 from a prior closing price of $45.12. However, the script later closed the day at $47.27, up 4.77%. The company’s stock has a 5-day price change of 3.69% and 13.55% over the past three months. DOW shares are trading -13.63% year to date (YTD), with the 12-month market performance up to 13.09% higher. It has a 12-month low price of $21.95 and touched a high of $56.25 over the same period. Currently, 5.43 million shares have been traded, compared to an average intraday trading volume of 4.52 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 6.54%, 10.44%, and 10.90% respectively.
Institutional ownership of Dow Inc. (NYSE: DOW) shares accounts for 68.30% of the company’s 741.12M shares outstanding. Mutual fund holders own 26.07%, while other institutional holders and individual stakeholders account for 41.49% and 0.13% respectively.
It has a market capitalization of $35.12B. The earnings-per-share (ttm) stands at -$2.65. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.37% over the week and 3.04% over the month.
Analysts forecast that Dow Inc. (DOW) will achieve an EPS of $0.11 for the current quarter, $0.29 for the next quarter and $2.09 for 2021. The lowest estimate earnings-per-share for the quarter is $0.01 while analysts give the company a high EPS estimate of $0.33. Comparatively, EPS for the current quarter was $0.91 a year ago. Earnings per share for the fiscal year are expected to decrease by -164.70%, and 178.88% over the next financial year.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 22 brokerage firm advisors rate Dow Inc. (DOW) as a “Moderate Buy” at a consensus score of 2.70. Specifically, 6 Wall Street analysts polled rate the stock as a buy, while 14 of the 22 advise that investors “hold,” and 0 rated it as a “Sell.”
Looking at the support for the DOW, a number of firms have released research notes about the stock. HSBC Securities stated their Hold rating for the stock in a research note on May 14, 2020, with the firm’s price target at $35. UBS coverage for the Dow Inc. (DOW) stock in a research note released on May 06, 2020 offered a Neutral rating with a price target of $32. BofA/Merrill was of a view on May 04, 2020 that the stock is Underperform, while Credit Suisse gave the stock Neutral rating on May 01, 2020, issuing a price target of $39- $34. Citigroup on their part issued Neutral rating on May 01, 2020.