FMC (NYSE:FMC) Hits New 52-Week Low After Analyst Downgrade

Key Points

• FMC shares hit a new 52-week low, falling as low as $4.84 after RBC cut its price target from $11 to $9 while maintaining a “sector perform” rating.
• The company sharply reduced its third-quarter outlook, forecasting revenue of $65 million–$125 million and adjusted EBITDA of negative $565 million to negative $510 million, citing weak demand, excess channel inventory and generic competition.
• FMC is taking commercial actions, including selected price reductions, while discussing potential debt-covenant modifications with lenders; investigations by multiple law firms add further headline and litigation risk.

Shares of FMC Corporation (NYSE:FMC - Get Free Report) reached a new 52-week low during mid-day trading on Friday after Royal Bank Of Canada lowered their price target on the stock from $11.00 to $9.00. Royal Bank Of Canada currently has a sector perform rating on the stock. FMC traded as low as $4.84 and last traded at $5.6350, with a volume of 32,568,651 shares. The stock had previously closed at $8.09.

A number of other equities analysts have also weighed in on FMC. Citigroup reiterated a "buy" rating on shares of FMC in a research report on Tuesday, August 4th. Mizuho decreased their target price on FMC from $15.00 to $12.00 and set an "outperform" rating on the stock in a research note on Tuesday. Seaport Research Partners set a $21.00 price target on FMC in a report on Tuesday, August 4th. Barclays upgraded shares of FMC from a "strong sell" rating to a "hold" rating in a research note on Thursday, August 6th. Finally, The Goldman Sachs Group reiterated a "buy" rating and set a $18.00 target price on shares of FMC in a research report on Friday, July 31st. Four analysts have rated the stock with a Buy rating, six have issued a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat.com, FMC has an average rating of "Hold" and a consensus price target of $12.69.

Trending Headlines about FMC

Here are the key news stories impacting FMC this week:

• Positive Sentiment: FMC announced commercial actions—including price reductions on selected products and changes to its U.S. selling model—to reduce elevated channel inventories, improve product movement and support future replenishment demand. FMC Corporation Provides Update to Third-Quarter Expectations
• Neutral Sentiment: Options activity increased, with traders purchasing approximately 3,446 call contracts versus an average of about 2,073, indicating some speculative interest despite the selloff.
• Neutral Sentiment: Royal Bank of Canada lowered its price target to $9 from $11 while maintaining a “sector perform” rating, signaling limited conviction in a near-term recovery. RBC Lowers FMC Price Target
• Negative Sentiment: FMC cut third-quarter revenue guidance to just $65 million–$125 million and projected adjusted EBITDA of negative $565 million to negative $510 million. The revised outlook is dramatically below prior expectations and reflects approximately $625 million–$675 million of charges tied to commercial actions. FMC Cuts Third-Quarter Revenue Outlook
• Negative Sentiment: Management cited weaker-than-expected demand, challenging market conditions and unusually high inventories of more expensive FMC products held by channel customers. Those inventories are restricting product movement and delaying replenishment orders, while generic competition is forcing pricing reductions. FMC Warns of Losses and Slashes Outlook
• Negative Sentiment: FMC said it expects to comply with its debt covenants at September 30 but plans to discuss potential covenant modifications with its banks, adding financial-risk concerns.
• Negative Sentiment: Multiple law firms announced investigations into possible securities-law violations following the outlook reduction. These announcements do not establish wrongdoing, but they add headline and litigation risk for investors. FMC Investor Alert

Institutional Inflows and Outflows

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

FMC Stock Performance

The firm has a market cap of $705.67 million, a P/E ratio of -0.26 and a beta of 0.45. The company has a debt-to-equity ratio of 2.38, a quick ratio of 1.48 and a current ratio of 1.99. The firm's fifty day moving average price is $10.34 and its 200 day moving average price is $12.17.

FMC (NYSE:FMC - Get Free Report) last posted its earnings results on Wednesday, July 29th. The basic materials company reported $0.26 earnings per share for the quarter, topping analysts' consensus estimates of $0.22 by $0.04. The company had revenue of $841.40 million during the quarter, compared to analyst estimates of $895.14 million. FMC had a positive return on equity of 11.35% and a negative net margin of 84.83%. FMC's revenue was down 17.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.69 earnings per share. Sell-side analysts expect that FMC Corporation will post 1.23 EPS for the current fiscal year.

FMC Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th were given a $0.08 dividend. The ex-dividend date of this dividend was Wednesday, September 30th. This represents a $0.32 dividend on an annualized basis and a dividend yield of 5.7%. FMC's payout ratio is presently -1.45%.

About FMC

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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