On March 21, 2023 at 12:31:03 ET an unusually large $835.80K block of Call contracts in Dow (DOW) was sold, with a strike price of $55.00 / share, expiring in 87 days (on June 16, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 4.42 sigmas above the mean, placing it in the 100.00 percentile of all recent large trades made in DOW options.
This trade was first picked up on Fintel’s real time Unusual Option Trades tool, where unusual option trades are highlighted.
Analyst Price Forecast Suggests 16.23% Upside
As of March 21, 2023, the average one-year price target for Dow is $59.58. The forecasts range from a low of $45.45 to a high of $71.40. The average price target represents an increase of 16.23% from its latest reported closing price of $51.26.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Dow is $52,469MM, a decrease of 7.79%. The projected annual non-GAAP EPS is $4.46.
What is the Fund Sentiment?
There are 2802 funds or institutions reporting positions in Dow. This is an increase of 132 owner(s) or 4.94% in the last quarter. Average portfolio weight of all funds dedicated to DOW is 0.37%, an increase of 11.27%. Total shares owned by institutions decreased in the last three months by 1.93% to 519,461K shares. The put/call ratio of DOW is 1.17, indicating a bearish outlook.
What are Large Shareholders Doing?
Massachusetts Financial Services holds 23,557K shares representing 3.33% ownership of the company. In it’s prior filing, the firm reported owning 24,320K shares, representing a decrease of 3.24%. The firm decreased its portfolio allocation in DOW by 99.98% over the last quarter.
Capital World Investors holds 19,969K shares representing 2.82% ownership of the company. In it’s prior filing, the firm reported owning 19,970K shares, representing a decrease of 0.00%. The firm increased its portfolio allocation in DOW by 8.90% over the last quarter.
VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 13,583K shares representing 1.92% ownership of the company. In it’s prior filing, the firm reported owning 21,388K shares, representing a decrease of 57.46%. The firm decreased its portfolio allocation in DOW by 13.50% over the last quarter.
Boston Partners holds 12,749K shares representing 1.80% ownership of the company. In it’s prior filing, the firm reported owning 12,500K shares, representing an increase of 1.95%. The firm decreased its portfolio allocation in DOW by 99.95% over the last quarter.
MEIAX – MFS Value Fund A holds 12,030K shares representing 1.70% ownership of the company. In it’s prior filing, the firm reported owning 12,296K shares, representing a decrease of 2.21%. The firm increased its portfolio allocation in DOW by 17.96% over the last quarter.
Dow Chemical Declares $0.70 Dividend
On February 9, 2023 the company declared a regular quarterly dividend of $0.70 per share ($2.80 annualized). Shareholders of record as of February 28, 2023 received the payment on March 10, 2023. Previously, the company paid $0.70 per share.
At the current share price of $51.26 / share, the stock’s dividend yield is 5.46%. Looking back five years and taking a sample every week, the average dividend yield has been 5.47%, the lowest has been 3.95%, and the highest has been 12.73%. The standard deviation of yields is 1.21 (n=186).
The current dividend yield is 0.01 standard deviations below the historical average.
Additionally, the company’s dividend payout ratio is 0.43. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company has not increased its dividend in the last three years.
Dow Background Information
(This description is provided by the company.)
Dow combines global breadth, asset integration and scale, focused innovation and leading business positions to achieve profitable growth. The Company’s ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company, with a purpose to deliver a sustainable future for the world through its materials science expertise and collaboration with its partners. Dow’s portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure, mobility and consumer care. Dow operates 106 manufacturing sites in 31 countries and employs approximately 35,700 people. Dow delivered sales of approximately $39 billion in 2020.
This article originally appeared on Fintel
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