Technicals Say Dow Inc. (DOW) Is A Hold

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MDVL Stock
MDVL Stock

Dow Inc. (NYSE:DOW) finished Thursday with a subtraction of -$0.21 to close at $44.77, a downside of -0.47 percent. An average of 6,085,460 shares of common stock have been traded in the last five days. There was a fall of -$2.14 in the past week, and it reached a new high 18 times over the past 12 months. The last 20 days have seen an average of 6,764,500 shares traded, while the 50-day average volume stands at 6,015,316.

DOW stock has decreased by -19.51% in the last month. The company shares reached their 1-month lowest point of $44.75 on 09/22/22. With the stock rallying to its 52-week high on 04/21/22, shares of the company touched a low of $44.97 and a high of $71.86 in 52 weeks. It has reached a new high 21 times so far this year and lost -21.07% or -$11.95 in price. In spite of this, the price is down -37.70% from the 52-week high.


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Insider Transactions

142 days have passed since Dow Inc. (DOW) last reported insider trading activity. Ungerleider Howard I, who is President and CFO, most recently acquired $104,101 shares at $68.70 per share on May 04.

Valuation Metrics

Dow Inc. (DOW) has a trailing price-to-earnings (P/E) ratio of 5.02. The stock’s beta is 1.36. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.54, the price-to-book (PB) ratio at 1.71, and the price-to-cash flow ratio at 4.02.

The company has a payout ratio of 31.10%. The company’s most recent quarterly dividend payment was $0.70 a share, without any change from last year. Its latest increase dividend $0.24 reported on Thursday April 11 2019.

Financial Health

The quick ratio of Dow Inc. for the three months ended June 29 was 1.00, and the current ratio was 1.60, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.69 and a total debt to equity ratio of 0.72 for the quarter ending June 29. Its gross profit as reported stood at $10.78 billion compared to revenue of $54.97 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Dow Inc.’s return on assets was 10.60%.

Earnings Surprise

For the three-month period that ended June 29, Dow Inc. had $13.06 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $1.66 billion in the quarter, while revenues of $1.57 billion were shrunk -14.45%. The analyst consensus anticipated Dow Inc.’s latest quarter earnings to come in at $2.14 per share, but it turned out to be $2.31, a 7.90% surprise. For the quarter, EBITDA amounted to $2.71 billion. Shareholders own equity worth $718.17 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Dow Inc. (DOW) price momentum. RSI 9-day as of the close on 22 September was 22.09%, suggesting the stock is oversold, with historical volatility in this time frame at 29.59%.

As of today, DOW’s price is $45.80 -4.56% or -$2.14 from its 5-day moving average. DOW is currently trading -17.46% lower than its 20-day SMA and -32.68% lower than its 100-day SMA. However, the stock’s current price level is -9.87% below the SMA50 and -16.91% below the SMA200.

The stochastic %K and %D were 3.88% and 9.02%, respectively, and the average true range (ATR) was 1.48. With the 14-day stochastic at 0.28% and the average true range at 1.49, the RSI (14) stands at 27.61%. The stock has reached -1.58 on the 9-day MACD Oscillator while the 14-day reading was at -2.47.

Analyst Ratings

Jefferies downgraded Dow Inc. (NYSE: DOW) to a a Hold rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for Dow Inc. (DOW) among analysts is Hold. According to current brokerage recommendations, 2 brokerage firms advise that investors sell DOW, while 18 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 3 others rate it as a “buy”.

What is DOW’s price target for the next 12 months?

Analysts predict a range of price targets between $44.00 and $65.00, with a median target of $51.00. Taking a look at these predictions, the average price target given by analysts for Dow Inc. (DOW) stock is $53.62.

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