FMC (NYSE:FMC) Shares Down 6.4% - What's Next?

Key Points

• FMC shares fell 6.4% to about $5.30, with trading volume well below average. The stock is substantially below its 50-day and 200-day moving averages of $10.24 and $12.09, respectively.
• Analyst sentiment is bearish: Barclays cut its price target to $4 and Zacks Research downgraded the stock to “strong sell.” FMC has a consensus “Reduce” rating and an average target price of $11.68.
• Recent results were mixed, with EPS of $0.26 beating estimates but revenue falling 17.5% year over year to $841.4 million. The company continues to pay a quarterly dividend of $0.08, equivalent to a 6.1% annualized yield.

FMC Corporation (NYSE:FMC - Get Free Report) shares were down 6.4% during trading on Monday. The stock traded as low as $5.30 and last traded at $5.2980. Approximately 1,036,558 shares were traded during mid-day trading, a decline of 75% from the average session volume of 4,081,197 shares. The stock had previously closed at $5.66.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the company. Zacks Research cut FMC from a "hold" rating to a "strong sell" rating in a research note on Wednesday, July 1st. Barclays decreased their price objective on shares of FMC from $9.00 to $4.00 and set an "underweight" rating for the company in a report on Thursday. Wall Street Zen upgraded shares of FMC from a "sell" rating to a "hold" rating in a research note on Saturday, August 1st. Mizuho set a $10.00 target price on shares of FMC in a research note on Thursday. Finally, Citigroup reissued a "neutral" rating on shares of FMC in a report on Monday. Three investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and five have assigned a Sell rating to the company. According to MarketBeat.com, FMC has a consensus rating of "Reduce" and a consensus target price of $11.68.

FMC Stock Performance

The stock has a market capitalization of $655.58 million, a P/E ratio of -0.24 and a beta of 0.45. The stock has a 50 day moving average of $10.24 and a 200 day moving average of $12.09. The company has a debt-to-equity ratio of 2.38, a quick ratio of 1.48 and a current ratio of 1.99.

FMC (NYSE:FMC - Get Free Report) last issued its earnings results on Wednesday, July 29th. The basic materials company reported $0.26 earnings per share for the quarter, topping the consensus estimate of $0.22 by $0.04. The firm had revenue of $841.40 million for 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%. The firm's revenue for the quarter was down 17.5% on a year-over-year basis. During the same period last year, the company earned $0.69 earnings per share. Equities analysts predict that FMC Corporation will post 1.20 EPS for the current year.

FMC Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Wednesday, September 30th were issued a $0.08 dividend. This represents a $0.32 dividend on an annualized basis and a dividend yield of 6.1%. The ex-dividend date of this dividend was Wednesday, September 30th. FMC's dividend payout ratio (DPR) is -1.45%.

Institutional Trading of FMC

Several hedge funds have recently bought and sold shares of the company. Bank of New York Mellon Corp bought a new position in FMC in the 2nd quarter worth about $8,498,000. AXQ Capital LP increased its stake in shares of FMC by 109.9% in the second 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. Wellington Management Group LLP raised its holdings in shares of FMC by 142.4% during the second quarter. Wellington Management Group LLP now owns 235,089 shares of the basic materials company's stock valued at $2,704,000 after buying an additional 138,098 shares during the last quarter. Public Employees Retirement System of Ohio bought a new stake in shares of FMC during the second quarter valued at approximately $1,175,000. Finally, Entropy Technologies LP bought a new stake in shares of FMC during the first quarter valued at approximately $1,401,000. 91.86% of the stock is currently owned by institutional investors.

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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