FMC (NYSE:FMC) Stock Price Target Lowered at Royal Bank Of Canada

Key Points

• Royal Bank of Canada lowered FMC’s price target from $11 to $9 while maintaining a “sector perform” rating; the new target still implies roughly 69% upside from the prior close.
• FMC shares fell to $5.33, near their 12-month low of $4.84. Analysts’ consensus remains “Hold,” with an average price target of $13.38.
• The company sharply reduced its third-quarter outlook, projecting revenue of $65 million–$125 million and adjusted EBITDA of negative $565 million–$510 million, citing weak demand, excess channel inventory and costly commercial actions.

FMC (NYSE:FMC - Get Free Report) had its target price lowered by equities researchers at Royal Bank Of Canada from $11.00 to $9.00 in a report released on Thursday, Benzinga reports. The firm currently has a "sector perform" rating on the basic materials company's stock. Royal Bank Of Canada's price objective indicates a potential upside of 69.01% from the company's previous close.

A number of other analysts have also recently weighed in on the stock. Citigroup reissued a "buy" rating on shares of FMC in a research note on Tuesday, August 4th. Weiss Ratings reissued a "sell (d-)" rating on shares of FMC in a research report on Wednesday, August 26th. BMO Capital Markets set a $14.00 price target on shares of FMC in a research note on Friday, July 3rd. JPMorgan Chase & Co. cut their price target on shares of FMC from $16.00 to $12.00 and set a "neutral" rating for the company in a research note on Friday, July 31st. Finally, Mizuho decreased their price objective on FMC from $15.00 to $12.00 and set an "outperform" rating on the stock in a report on Tuesday. Four research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $13.38.

FMC Stock Performance

NYSE:FMC traded down $2.77 during trading hours on Thursday, hitting $5.33. 11,717,466 shares of the company traded hands, compared to its average volume of 3,913,821. The company has a current ratio of 1.99, a quick ratio of 1.48 and a debt-to-equity ratio of 2.38. FMC has a twelve month low of $4.84 and a twelve month high of $30.95. The firm has a 50-day moving average of $10.44 and a 200 day moving average of $12.24. The stock has a market capitalization of $666.83 million, a price-to-earnings ratio of -0.25 and a beta of 0.45.

FMC (NYSE:FMC - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The basic materials company reported $0.26 EPS for the quarter, beating the consensus estimate of $0.22 by $0.04. FMC had a positive return on equity of 11.35% and a negative net margin of 84.83%. The firm had revenue of $841.40 million during the quarter, compared to analysts' expectations of $895.14 million. During the same quarter in the prior year, the firm posted $0.69 EPS. The company's revenue for the quarter was down 17.5% on a year-over-year basis. On average, analysts forecast that FMC will post 1.23 EPS for the current year.

Hedge Funds Weigh In On FMC

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Wellington Management Group LLP increased its stake in shares of FMC by 142.4% in the second quarter. Wellington Management Group LLP now owns 235,089 shares of the basic materials company's stock valued at $2,704,000 after buying an additional 138,098 shares in the last quarter. Public Employees Retirement System of Ohio bought a new position in shares of FMC in the second quarter worth about $1,175,000. Bank of New York Mellon Corp bought a new position in shares of FMC in the second quarter worth about $8,498,000. AXQ Capital LP raised its stake in shares of FMC by 109.9% in the second quarter. AXQ Capital LP now owns 366,661 shares of the basic materials company's stock worth $4,217,000 after acquiring an additional 191,945 shares during the last quarter. Finally, Sequoia Financial Advisors LLC lifted its position in shares of FMC by 379.4% during the second quarter. Sequoia Financial Advisors LLC now owns 65,414 shares of the basic materials company's stock worth $752,000 after purchasing an additional 51,768 shares in the last quarter. 91.86% of the stock is currently owned by institutional investors and hedge funds.

FMC News Roundup

Here are the key news stories impacting FMC this week:

• Positive Sentiment: FMC announced commercial actions in Brazil, Argentina, the United States and Canada intended to accelerate the movement of products through distribution channels and support future replenishment demand. The company also said it expects to comply with its debt covenants as of September 30 and will discuss potential covenant modifications with its banks. FMC Corporation Provides Update to Third-Quarter Expectations
• Neutral Sentiment: The company plans to lower prices on selected products held by channel customers and revise its U.S. selling and pricing model to narrow the gap between gross and net pricing. These steps could improve inventory movement but are likely to pressure near-term margins and revenue. FMC Guides Below Expectations on Weak Demand and Price Cuts
• Negative Sentiment: FMC now expects third-quarter revenue of only $65 million to $125 million and adjusted EBITDA of negative $565 million to $510 million. The revised outlook includes approximately $625 million to $675 million of charges tied to commercial actions. An earlier reported revenue range of $690 million to $800 million was also below the roughly $865 million consensus estimate, underscoring the severity of the subsequent revision. FMC Third-Quarter Update
• Negative Sentiment: High inventories of more expensive products at certain channel customers are slowing product movement and reducing near-term demand. The company has not finalized its quarterly results and said it cannot yet estimate complete GAAP results, increasing uncertainty ahead of its scheduled October 29 earnings release. FMC Shares Plunge as Company Cuts Outlook

FMC Company Profile

FMC Corporation NYSE: FMC is an agricultural sciences company that develops, manufactures and markets crop protection products for farmers and other agricultural professionals. Its portfolio includes herbicides, insecticides and fungicides used to help protect crops from weeds, insects and diseases.

The company also develops biological and other crop health solutions, supported by research in areas such as plant science, chemistry and biotechnology. FMC's products are used across a range of crops and growing conditions, and the company serves agricultural markets in North America, Latin America, Europe, Asia and other regions worldwide.

FMC traces its origins to 1883 and has evolved through acquisitions and investments in agricultural technology into a focused crop protection company.

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