Piper Sandler has recently reduced Dow Inc (DOW) stock to Neutral rating, as announced on January 7, 2025, according to Finviz. Earlier, on December 18, 2024, Evercore ISI had raised the stock rating, setting a price target of $56. JP Morgan also raised Overweight rating with a price target of $61. Additionally, Wolfe Research initiated Peer Perform rating on March 1, 2024. BofA Securities analysts, in their report published on January 16, 2024, also raised Buy rating and set a price target of $60 for Dow Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Dow Inc (DOW) Stock Trading Recap
On Tuesday, Dow Inc (DOW) stock saw a modest uptick, ending the day at $40.08 which represents a slight increase of $0.41 or 1.03% from the prior close of $39.67. The stock opened at $39.9 and touched a low of $39.66 during the day, reaching a high of $40.11. The volume of shares traded was 4.51 million falling short of the average volume of 7.31 million.
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DOW Stock Performance and Moving Averages
In recent trading, Dow Inc (DOW) stock price has shown some volatility, fluctuating 0.83% over the last five trades and -3.42% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -24.76%, and it has plunged by -25.47% in the previous three months. Currently, DOW is trading at 0.72%, -6.49%, and -22.45% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, DOW, a Basic Materials sector stock, is trading -33.96% below its 52-week high but remains 4.57% above its 52-week low. The Average True Range (ATR) (14 days) of 0.88 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Dow Inc’s Profitability and Valuation Ratios
Dow Inc’s profitability metrics reveal financial health. The company currently boasts an operating margin of 4.82% and a profit margin of 2.44%, with a gross margin of -24.76%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Dow Inc’s market capitalization stands at $28.06 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 26.87, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 15.19. Additionally, the Price-to-Sales Ratio is 0.65, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 1.53, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.24% of Dow Inc (DOW)’s shares, while financial institutions hold 69.93%.
