Market Analysts see Dow Inc. [DOW] gaining to $56. Time to buy?

Dow Inc. [NYSE: DOW] traded at a high on 11/17/20, posting a 1.02 gain after which it closed the day’ session at $54.48. The company report on November 17, 2020 that Dow and Royal Umbrella, leading Thai rice brand, collaborate to reduce carbon dioxide emissions with improved packaging.

Dow (NYSE: DOW) recently announced its collaboration with Royal Umbrella and Prepack, Thai leading flexible packaging producer under SCG Packaging (SCGP), to reduce carbon dioxide emissions by optimizing plastic resin used in rice bags as well as reducing energy use in production. The collaboration utilizes Dow’s sustainable packaging solution INNATE™ and down-gauging technology. The new recyclable rice bags will be launched in 2021 in response to consumers’ demand for environmental-friendly packaging and to address the partners’ sustainability goals.

Royal Umbrella’s developmental packaging is Thailand’s first brand to use multi-layer, mono-material polyethylene rice bags made from Dow’s innovative INNATE™ precision packaging resins. In spite of a reduction in thickness, packaging made with Dow’s resins will be stronger.

The results of the trading session contributed to over 4783773 shares changing hands. Over the past one week, the price volatility of Dow Inc. stands at 3.33% while the volatility over the past one month is 3.61%.

The market cap for DOW stock reached $39.69 billion, with 741.75 million shares outstanding and 740.79 million shares in the current float. Compared to the average trading volume of 4.38M shares, DOW reached a trading volume of 4783773 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Dow Inc. [DOW]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for DOW shares is $50.59 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on DOW stock is a recommendation set at 2.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Deutsche Bank have made an estimate for Dow Inc. shares, keeping their opinion on the stock as Hold, with their previous recommendation back on November 13, 2020. The new note on the price target was released on November 13, 2020, representing the official price target for Dow Inc. stock.

The Average True Range (ATR) for Dow Inc. is set at 1.95, with the Price to Sales ratio for DOW stock in the period of the last 12 months amounting to 1.04. The Price to Book ratio for the last quarter was 3.27. Price to Free Cash Flow for DOW in the course of the last twelve months was 6.07 with Quick ratio for the last quarter at 1.20.

How has DOW stock performed recently?

Dow Inc. [DOW] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 1.91. With this latest performance, DOW shares gained by 11.55% in over the last four-week period, additionally plugging by 50.58% over the last 6 months – not to mention a rise of 0.29% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for DOW stock in for the last two-week period is set at 64.55, with the RSI for the last a single of trading hit 68.09, and the three-weeks RSI is set at 62.20 for Dow Inc. [DOW]. The present Moving Average for the last 50 days of trading for this stock 48.81, while it was recorded at 52.73 for the last single week of trading, and 41.58 for the last 200 days.

Dow Inc. [DOW]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Dow Inc. [DOW] shares currently have an operating margin of +8.38 and a Gross Margin at +13.87. Dow Inc.’s Net Margin is presently recorded at -4.18.

Return on Total Capital for DOW is now 8.88, given the latest momentum, and Return on Invested Capital for the company is -4.65. Return on Equity for this stock declined to -8.90, with Return on Assets sitting at -2.61. When it comes to the capital structure of this company, Dow Inc. [DOW] has a Total Debt to Total Equity ratio set at 141.47. Additionally, DOW Total Debt to Total Capital is recorded at 58.59, with Total Debt to Total Assets ending up at 31.65. Long-Term Debt to Equity for the company is recorded at 130.82, with the Long-Term Debt to Total Capital now at 54.18.

Reflecting on the efficiency of the workforce at the company, Dow Inc. [DOW] managed to generate an average of -$49,233 per employee. Receivables Turnover for the company is 4.30 with a Total Asset Turnover recorded at a value of 0.62.Dow Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.70.

Earnings analysis for Dow Inc. [DOW]

With the latest financial reports released by the company, Dow Inc. posted 0.78/share EPS, while the average EPS was predicted by analysts to be reported at 0.74/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 5.40%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for DOW. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Dow Inc. go to -7.60%.

Insider trade positions for Dow Inc. [DOW]

There are presently around $27,209 million, or 67.40% of DOW stock, in the hands of institutional investors. The top three institutional holders of DOW stocks are: VANGUARD GROUP INC with ownership of 60,189,249, which is approximately -1.769% of the company’s market cap and around 0.09% of the total institutional ownership; CAPITAL WORLD INVESTORS, holding 51,620,148 shares of the stock with an approximate value of $2.81 billion in DOW stocks shares; and BLACKROCK INC., currently with $2.43 billion in DOW stock with ownership of nearly -0.718% of the company’s market capitalization.

Positions in Dow Inc. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 482 institutional holders increased their position in Dow Inc. [NYSE:DOW] by around 27,394,009 shares. Additionally, 578 investors decreased positions by around 24,457,194 shares, while 185 investors held positions by with 447,588,234 shares. The mentioned changes placed institutional holdings at 499,439,437 shares, according to the latest SEC report filing. DOW stock had 121 new institutional investments in for a total of 2,532,580 shares, while 93 institutional investors sold positions of 1,856,526 shares during the same period.

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