Chemours (NYSE:CC) Shares Down 7% - Should You Sell?

Key Points

• Chemours' share price fell 7% on Wednesday, with the stock closing at $12.63, significantly lower than its previous close of $13.59 and below the average trading volume.
• A number of analysts have downgraded Chemours' stock, with Wall Street Zen moving it from a "hold" to a "sell" rating, while others have adjusted their price targets, indicating mixed sentiment.
• The company reported disappointing earnings for the last quarter, with an EPS of $0.13, missing analysts' expectations and highlighting a year-over-year decrease compared to the same period last year.

The Chemours Company (NYSE:CC - Get Free Report)'s stock price dropped 7% on Wednesday . The stock traded as low as $12.75 and last traded at $12.63. Approximately 2,319,401 shares traded hands during trading, a decline of 32% from the average daily volume of 3,429,724 shares. The stock had previously closed at $13.59.

Analysts Set New Price Targets

CC has been the topic of several analyst reports. Mizuho lifted their target price on shares of Chemours from $13.00 to $16.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 15th. UBS Group lowered their price objective on shares of Chemours from $18.00 to $17.00 and set a "buy" rating on the stock in a research report on Wednesday, May 7th. Truist Financial cut their target price on shares of Chemours from $27.00 to $22.00 and set a "buy" rating on the stock in a research note on Monday, April 14th. Morgan Stanley decreased their target price on Chemours from $22.00 to $15.00 and set an "equal weight" rating for the company in a research report on Monday, May 12th. Finally, The Goldman Sachs Group lowered their price target on Chemours from $21.00 to $14.00 and set a "neutral" rating on the stock in a report on Wednesday, May 14th. One analyst has rated the stock with a sell rating, four have assigned a hold rating and five have issued a buy rating to the stock. According to MarketBeat, Chemours has an average rating of "Hold" and an average price target of $17.44.

Chemours Stock Down 4.0%

The firm has a 50 day simple moving average of $12.02 and a 200-day simple moving average of $13.50. The company has a debt-to-equity ratio of 7.01, a current ratio of 1.75 and a quick ratio of 0.83. The stock has a market capitalization of $1.72 billion, a price-to-earnings ratio of 57.50 and a beta of 1.61.

Chemours (NYSE:CC - Get Free Report) last released its quarterly earnings results on Tuesday, May 6th. The specialty chemicals company reported $0.13 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.19 by ($0.06). The business had revenue of $1.37 billion during the quarter, compared to the consensus estimate of $1.36 billion. Chemours had a net margin of 0.54% and a return on equity of 23.82%. The business's quarterly revenue was up .4% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.32 earnings per share. On average, sell-side analysts forecast that The Chemours Company will post 2.03 EPS for the current fiscal year.

Chemours Dividend Announcement

The firm also recently announced a dividend, which was paid on Monday, June 16th. Shareholders of record on Monday, May 19th were given a dividend of $0.0875 per share. The ex-dividend date was Friday, May 16th. This represents a yield of 317.0%. Chemours's dividend payout ratio is presently 175.00%.

Insider Activity at Chemours

In related news, insider Damian Gumpel purchased 7,822 shares of Chemours stock in a transaction dated Tuesday, June 3rd. The shares were acquired at an average cost of $9.95 per share, for a total transaction of $77,828.90. Following the transaction, the insider directly owned 131,701 shares of the company's stock, valued at approximately $1,310,424.95. This trade represents a 6.31% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO Shane Hostetter acquired 4,450 shares of the company's stock in a transaction that occurred on Monday, May 19th. The stock was bought at an average price of $11.28 per share, with a total value of $50,196.00. Following the acquisition, the chief financial officer directly owned 59,694 shares of the company's stock, valued at $673,348.32. The trade was a 8.06% increase in their position. The disclosure for this purchase can be found here. In the last quarter, insiders have bought 25,672 shares of company stock valued at $251,573. 0.47% of the stock is owned by corporate insiders.

Institutional Trading of Chemours

Hedge funds and other institutional investors have recently made changes to their positions in the business. LPL Financial LLC raised its position in shares of Chemours by 11.2% in the fourth quarter. LPL Financial LLC now owns 68,797 shares of the specialty chemicals company's stock valued at $1,163,000 after purchasing an additional 6,937 shares during the period. Vanguard Group Inc. grew its holdings in Chemours by 0.6% in the 4th quarter. Vanguard Group Inc. now owns 15,223,961 shares of the specialty chemicals company's stock valued at $257,285,000 after buying an additional 94,885 shares in the last quarter. Norges Bank acquired a new position in Chemours in the 4th quarter valued at $30,702,000. Schroder Investment Management Group acquired a new stake in shares of Chemours during the fourth quarter worth $4,393,000. Finally, Franklin Resources Inc. acquired a new stake in shares of Chemours during the fourth quarter worth $283,000. 76.26% of the stock is currently owned by institutional investors and hedge funds.

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.