Chemours (NYSE:CC) Shares Gap Up After Insider Buying Activity

Key Points

• Chemours shares saw a significant increase, opening at $13.00 after an insider, CEO Denise Dignam, purchased 4,068 shares at $12.06 each, raising her ownership stake by 2.17%.
• Analyst recognition has been mixed, with Goldman Sachs lowering its price target from $21.00 to $14.00, while Mizuho raised it to $16.00, highlighting diverse market expectations.
• The company recently cut its dividend to $0.0875 per share, reflecting a dividend yield of 2.6%, as it navigates challenging financial conditions, including a negative net margin.

The Chemours Company (NYSE:CC - Get Free Report) shares gapped up before the market opened on Wednesday after an insider bought additional shares in the company. The stock had previously closed at $12.42, but opened at $13.00. Chemours shares last traded at $13.60, with a volume of 918,108 shares.

Specifically, CEO Denise Dignam bought 4,068 shares of the firm's stock in a transaction that occurred on Friday, August 8th. The shares were bought at an average price of $12.06 per share, with a total value of $49,060.08. Following the purchase, the chief executive officer owned 191,546 shares of the company's stock, valued at $2,310,044.76. This trade represents a 2.17% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink.

Analyst Upgrades and Downgrades

CC has been the subject of a number of recent research reports. The Goldman Sachs Group dropped their target price on Chemours from $21.00 to $14.00 and set a "neutral" rating for the company in a report on Wednesday, May 14th. Wall Street Zen cut Chemours from a "hold" rating to a "sell" rating in a report on Wednesday, May 21st. Royal Bank Of Canada lifted their target price on Chemours from $14.00 to $15.00 and gave the stock an "outperform" rating in a report on Thursday, July 3rd. Mizuho boosted their price objective on Chemours from $13.00 to $16.00 and gave the company an "outperform" rating in a report on Tuesday, July 15th. Finally, Barclays lowered their target price on Chemours from $16.00 to $13.00 and set an "equal weight" rating for the company in a report on Wednesday, May 28th. One analyst has rated the stock with a sell rating, three have assigned a hold rating and five have given a buy rating to the company's stock. According to data from MarketBeat, Chemours presently has an average rating of "Hold" and an average target price of $17.38.

Chemours Stock Performance

The company has a debt-to-equity ratio of 17.16, a current ratio of 1.68 and a quick ratio of 0.83. The stock has a market cap of $2.03 billion, a price-to-earnings ratio of -4.84 and a beta of 1.61. The firm has a fifty day moving average of $12.32 and a 200 day moving average of $13.14.

Chemours (NYSE:CC - Get Free Report) last posted its earnings results on Tuesday, August 5th. The specialty chemicals company reported $0.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.46 by $0.12. The company had revenue of $1.62 billion during the quarter, compared to analysts' expectations of $1.57 billion. Chemours had a positive return on equity of 35.14% and a negative net margin of 7.19%. The firm's quarterly revenue was up 5.0% compared to the same quarter last year. During the same quarter last year, the firm earned $0.38 earnings per share. As a group, sell-side analysts forecast that The Chemours Company will post 2.03 EPS for the current year.

Chemours Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 12th. Stockholders of record on Friday, August 15th will be given a dividend of $0.0875 per share. This represents a $0.35 annualized dividend and a dividend yield of 2.6%. The ex-dividend date is Friday, August 15th. Chemours's dividend payout ratio (DPR) is currently -12.50%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. raised its stake in Chemours by 8.3% in the first quarter. Vanguard Group Inc. now owns 16,487,008 shares of the specialty chemicals company's stock valued at $223,069,000 after buying an additional 1,263,047 shares in the last quarter. Ameriprise Financial Inc. lifted its holdings in shares of Chemours by 23.8% in the 4th quarter. Ameriprise Financial Inc. now owns 4,373,172 shares of the specialty chemicals company's stock valued at $73,907,000 after purchasing an additional 839,849 shares during the last quarter. Millennium Management LLC lifted its holdings in shares of Chemours by 60.4% in the 1st quarter. Millennium Management LLC now owns 4,022,782 shares of the specialty chemicals company's stock valued at $54,428,000 after purchasing an additional 1,515,520 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of Chemours by 41.4% in the 2nd quarter. Geode Capital Management LLC now owns 3,484,416 shares of the specialty chemicals company's stock valued at $39,901,000 after purchasing an additional 1,020,933 shares during the last quarter. Finally, American Century Companies Inc. increased its position in Chemours by 17.5% in the 1st quarter. American Century Companies Inc. now owns 1,909,149 shares of the specialty chemicals company's stock valued at $25,831,000 after acquiring an additional 284,130 shares during the period. 76.26% of the stock is currently owned by hedge funds and other institutional investors.

About Chemours

The Chemours Company provides performance chemicals in North America, the Asia Pacific, Europe, the Middle East, Africa, and Latin America. It operates through three segments: Titanium Technologies, Thermal & Specialized Solutions, and Advanced Performance Materials. The Titanium Technologies segment provides TiO2 pigment under the Ti-Pure brand for delivering whiteness, brightness, opacity, durability, efficiency, and protection in various of applications, such as architectural and industrial coatings, flexible and rigid plastic packaging, polyvinylchloride, laminate papers used for furniture and building materials, coated paper, and coated paperboard used for packaging.

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