Does FMC Corporation (FMC) offer a good opportunity for investors?

FMC Corporation (NYSE: FMC) stock fell -0.99% on Thursday to $103.87 against a previous-day closing price of $104.91. With 0.65 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.84 million shares. During the session, the Agricultural Inputs company that operates in wider Basic Materials sector, reached to the highest price of $105.15 whereas the lowest price it dropped to was $103.58. The 52-week range on FMC shows that it touched its highest point at $134.38 and its lowest point at $98.24 during that stretch. It currently has a 1-year price target of $140.59. With its current market cap of 12.93 billion, FMC has annualized dividend of $2.32 while the current yield stands at 2.23%. Beta for the stock currently stands at 0.84.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of FMC was down-trending over the past week, with a drop of -4.24%, but this was down by -13.31% over a month. Three-month performance dropped to -19.40% while six-month performance fell -18.93%. The stock lost -15.94% in the past year, while it has lost -16.77% so far this year. A look at the trailing 12-month EPS for FMC yields 6.46 with Next year EPS estimates of 8.81. For the next quarter, that number is 1.76. This implies an EPS growth rate of 5.60% for this year and 13.83% for next year. EPS is expected to grow by 9.61% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 30.80%.

Float and Shares Shorts:

At present, 125.34 million FMC shares are outstanding with a float of 124.46 million shares on hand for trading. On May 14, 2023, short shares totaled 1.09 million, which was 0.87% higher than short shares on Apr 13, 2023. In addition to Mr. Mark A. Douglas as the firm’s Pres, CEO & Director, Mr. Andrew D. Sandifer serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 92.08% of FMC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 54.48% of FMC, in contrast to 37.56% held by mutual funds. Shares owned by individuals account for 1.72%. As the largest shareholder in FMC with 11.23% of the stake, The Vanguard Group, Inc. holds 14,044,131 shares worth 14,044,131. A second-largest stockholder of FMC, Wellington Management Co. LLP, holds 8,431,340 shares, controlling over 6.74% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in FMC, holding 6,565,246 shares or 5.25% stake. With a 3.44% stake in FMC, the RBC Global Resources Fund is the largest stakeholder. A total of 4,300,000 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.13% of FMC stock, is the second-largest Mutual Fund holder. It holds 3,912,225 shares valued at 483.47 million. Vanguard 500 Index Fund holds 2.36% of the stake in FMC, owning 2,957,640 shares worth 365.51 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, FMC reported revenue of $1.45B and operating income of $316.70M. The EBITDA in the recently reported quarter was $312.80M and diluted EPS was $1.06.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for FMC since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With FMC analysts setting a high price target of $157.00 and a low target of $120.00, the average target price over the next 12 months is $140.71. Based on these targets, FMC could surge 51.15% to reach the target high and rise by 15.53% to reach the target low. Reaching the average price target will result in a growth of 35.47% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded FMC stock several times over the past three months with 11 Buys and 16 Sells. In these transactions, 19,050 shares were bought while 23,174 shares were sold. The number of buy transactions has increased to 120 while that of sell transactions has risen to 45 over the past year. The total number of shares bought during that period was 111,783 while 46,934 shares were sold.

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