AdvanSix (NYSE:ASIX) Stock Crosses Below Fifty Day Moving Average - Should You Sell?

Key Points

• AdvanSix shares fell below their 50-day moving average, trading as low as $15.27 versus the $16.53 average; the stock remains below its 200-day average of $19.70.
• Analyst sentiment is weak: coverage includes two Hold ratings and one Sell rating, with an average “Reduce” recommendation and a $21.50 price target. Truist also cut its target from $20 to $18.
• The company missed quarterly expectations, reporting $0.19 in EPS versus the $0.56 consensus and revenue of $421.28 million versus $452 million expected. AdvanSix still pays a $0.16 quarterly dividend, implying a 4.1% yield, though its payout ratio is negative.

Shares of AdvanSix (NYSE:ASIX - Get Free Report) passed below its 50-day moving average during trading on Thursday. The stock has a 50-day moving average of $16.53 and traded as low as $15.27. AdvanSix shares last traded at $15.6650, with a volume of 220,396 shares changing hands.

Wall Street Analysts Forecast Growth

ASIX has been the subject of several analyst reports. Wall Street Zen lowered AdvanSix from a "hold" rating to a "sell" rating in a research report on Saturday, August 8th. Truist Financial cut their price target on shares of AdvanSix from $20.00 to $18.00 and set a "hold" rating on the stock in a research report on Monday, August 10th. Finally, Weiss Ratings downgraded shares of AdvanSix from a "sell (d+)" rating to a "sell (d)" rating in a research report on Friday, August 21st. Two equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Reduce" and an average target price of $21.50.

AdvanSix Trading Up 1.5%

The business has a 50 day moving average of $16.53 and a two-hundred day moving average of $19.70. The company has a current ratio of 1.28, a quick ratio of 0.70 and a debt-to-equity ratio of 0.35. The firm has a market cap of $422.95 million, a P/E ratio of -23.73 and a beta of 1.34.

AdvanSix (NYSE:ASIX - Get Free Report) last announced its earnings results on Friday, August 7th. The company reported $0.19 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.56 by ($0.37). The business had revenue of $421.28 million for the quarter, compared to analyst estimates of $452.00 million. AdvanSix had a negative return on equity of 1.28% and a negative net margin of 1.14%. Analysts predict that AdvanSix will post -0.15 earnings per share for the current year.

AdvanSix Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Tuesday, August 18th were paid a dividend of $0.16 per share. The ex-dividend date of this dividend was Tuesday, August 18th. This represents a $0.64 annualized dividend and a dividend yield of 4.1%. AdvanSix's dividend payout ratio (DPR) is presently -96.97%.

Institutional Trading of AdvanSix

A number of institutional investors have recently bought and sold shares of ASIX. Allworth Financial LP bought a new stake in AdvanSix in the second quarter valued at $40,000. Integrated Wealth Concepts LLC bought a new position in AdvanSix during the 2nd quarter valued at $49,000. Group One Trading LLC bought a new stake in AdvanSix in the 1st quarter worth about $61,000. Legal & General Group Plc purchased a new stake in shares of AdvanSix during the second quarter valued at approximately $52,000. Finally, Public Employees Retirement System of Ohio increased its position in shares of AdvanSix by 253.4% during the 1st quarter. Public Employees Retirement System of Ohio now owns 6,474 shares of the company's stock valued at $158,000 after purchasing an additional 4,642 shares during the last quarter. Institutional investors own 86.39% of the company's stock.

About AdvanSix

AdvanSix Inc NYSE: ASIX is a diversified chemistry company that manufactures and sells polymer resins, chemical intermediates and performance products. Its portfolio includes nylon 6 resin, caprolactam, ammonium sulfate fertilizer, acetone and other chemical products used in a range of industrial and consumer applications.

The company's nylon 6 products are used in fibers, engineered plastics, films, automotive components, electrical and electronics products, and other applications. Its chemical intermediates support the production of coatings, adhesives, solvents and other materials, while its ammonium sulfate products are marketed as nitrogen and sulfur fertilizers for agricultural use.

AdvanSix was established as an independent, publicly traded company in 2016 following its separation from Honeywell International.

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