Arkema (OTCMKTS:ARKAY) Stock Crosses Below 200 Day Moving Average - What's Next?

Key Points

• Arkema's stock price has fallen below its 200-day moving average for the first time, indicating potential underlying issues, as it traded at $71.62 compared to the average of $76.38.
• The company reported an earnings per share (EPS) of $1.77 for the last quarter, missing expectations, while revenue exceeded projections at $2.75 billion.
• Analyst ratings for Arkema are mixed, with the average rating categorized as a “Hold” amid recent downgrades by various firms, including Jefferies and Barclays.

Arkema SA (OTCMKTS:ARKAY - Get Free Report) shares crossed below its two hundred day moving average during trading on Thursday . The stock has a two hundred day moving average of $76.38 and traded as low as $71.41. Arkema shares last traded at $71.62, with a volume of 10,506 shares.

Analysts Set New Price Targets

A number of research firms have recently issued reports on ARKAY. Citigroup reiterated a "buy" rating on shares of Arkema in a research report on Friday, July 11th. Sanford C. Bernstein initiated coverage on shares of Arkema in a research report on Thursday, April 24th. They issued an "underperform" rating for the company. Jefferies Financial Group lowered shares of Arkema to a "hold" rating in a research note on Monday, June 16th. Finally, Barclays lowered shares of Arkema from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 8th. One research analyst has rated the stock with a sell rating, two have given a hold rating, one has assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, Arkema presently has a consensus rating of "Hold".

Arkema Stock Up 0.2%

The stock has a market cap of $5.39 billion, a price-to-earnings ratio of 22.85, a PEG ratio of 0.49 and a beta of 1.05. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.64 and a current ratio of 2.43. The firm's 50-day simple moving average is $72.21 and its two-hundred day simple moving average is $76.25.

Arkema (OTCMKTS:ARKAY - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The basic materials company reported $1.77 earnings per share for the quarter, missing the consensus estimate of $2.09 by ($0.32). Arkema had a return on equity of 6.41% and a net margin of 2.41%. The firm had revenue of $2.75 billion for the quarter, compared to the consensus estimate of $2.29 billion. On average, sell-side analysts expect that Arkema SA will post 8.36 EPS for the current fiscal year.

Arkema Cuts Dividend

The firm also recently announced a dividend, which was paid on Thursday, June 12th. Stockholders of record on Friday, May 23rd were given a $3.4274 dividend. This represents a dividend yield of 447.0%. The ex-dividend date of this dividend was Thursday, May 22nd. Arkema's payout ratio is presently 97.74%.

About Arkema

Arkema SA manufactures and sells specialty chemicals and advanced materials worldwide. The company operates in three segments: Adhesive Solutions, Advanced Materials and Coating Solutions, and Intermediates. The Adhesive Solutions segment provides solutions for construction, renovation of buildings, DIY, durable goods, and packaging and non-woven applications; and supplies technologies used in building activities for businesses and individuals, including sealants, tiles, flooring adhesives and waterproofing systems, and technologies used in industry, which include automotive, textiles, glazing, flexible and rigid packaging, and hygiene markets.