Dow Chemical Co. (DOW) Stock Rating Upgraded by Zacks Investment Research
Dow Chemical Co. (NYSE:DOW) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Wednesday. The firm presently has a $58.00 target price on the stock. Zacks Investment Research’s price target would suggest a potential upside of 11.84% from the company’s current price.
According to Zacks, “Dow should benefit from its cost reduction and aggressive portfolio management actions as well as strategic investments in the U.S. Gulf Coast and the Middle East. The company is also moving forward with its planned mega-merger with DuPont, which is expected to create significant synergies. Dow should also gain from cost synergies associated with Dow Corning Silicones business in 2016. Moreover, the company remains committed to boost shareholder returns.”
A number of other equities research analysts have also commented on the company. Credit Agricole SA lowered Dow Chemical from an “outperform” rating to an “underperform” rating in a research report on Wednesday, July 6th. Vetr lowered Dow Chemical from a “buy” rating to a “sell” rating and set a $46.12 price target for the company. in a research report on Monday, July 4th. Nomura reissued a “buy” rating on shares of Dow Chemical in a research report on Tuesday, July 12th. RBC Capital Markets set a $65.00 price target on Dow Chemical and gave the company a “buy” rating in a research report on Tuesday, September 20th. Finally, JPMorgan Chase & Co. lowered Dow Chemical from an “overweight” rating to a “neutral” rating and lowered their price target for the company from $57.00 to $50.00 in a research report on Tuesday, June 28th. One research analyst has rated the stock with a sell rating, three have issued a hold rating and twelve have issued a buy rating to the company. The stock presently has an average rating of “Buy” and a consensus target price of $60.10.
Shares of Dow Chemical (NYSE:DOW) opened at 51.86 on Wednesday. The firm has a market cap of $58.44 billion, a P/E ratio of 7.58 and a beta of 1.40. Dow Chemical has a 12-month low of $40.26 and a 12-month high of $57.10. The stock’s 50 day moving average price is $53.04 and its 200-day moving average price is $52.24.
Dow Chemical (NYSE:DOW) last issued its earnings results on Thursday, July 28th. The company reported $0.95 earnings per share for the quarter, topping analysts’ consensus estimates of $0.86 by $0.09. Dow Chemical had a return on equity of 18.86% and a net margin of 18.31%. The company had revenue of $12 billion for the quarter, compared to analyst estimates of $11.24 billion. During the same period in the prior year, the firm earned $0.91 earnings per share. Dow Chemical’s revenue for the quarter was down 7.4% on a year-over-year basis. On average, analysts predict that Dow Chemical will post $3.53 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Friday, October 28th. Shareholders of record on Friday, September 30th will be issued a $0.46 dividend. The ex-dividend date of this dividend is Wednesday, September 28th. This represents a $1.84 annualized dividend and a dividend yield of 3.55%. Dow Chemical’s payout ratio is currently 27.10%.
Several hedge funds have recently added to or reduced their stakes in DOW. Washington Trust Bank boosted its stake in Dow Chemical by 7.9% in the third quarter. Washington Trust Bank now owns 1,926 shares of the company’s stock valued at $100,000 after buying an additional 141 shares during the last quarter. Livingston Group Asset Management CO operating as Southport Capital Management acquired a new stake in Dow Chemical during the second quarter valued at $111,000. Americafirst Capital Management LLC acquired a new stake in Dow Chemical during the second quarter valued at $112,000. Nelson Roberts Investment Advisors LLC boosted its stake in Dow Chemical by 2.3% in the second quarter. Nelson Roberts Investment Advisors LLC now owns 2,260 shares of the company’s stock valued at $112,000 after buying an additional 50 shares during the last quarter. Finally, Pinkerton Retirement Specialists LLC acquired a new stake in Dow Chemical during the second quarter valued at $115,000. 67.52% of the stock is currently owned by hedge funds and other institutional investors.
About Dow Chemical
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