Corteva (NYSE:CTVA) Shares Gap Down Following Weak Earnings

Corteva, Inc. (NYSE:CTVA) shares gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $65.70, but opened at $63.36. Corteva shares last traded at $64.60, with a volume of 195,609 shares changing hands.

The company reported $0.32 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.34 by ($0.02). Corteva had a return on equity of 6.63% and a net margin of 4.18%.

Corteva Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, March 17th. Stockholders of record on Monday, March 3rd will be issued a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.09%. The ex-dividend date of this dividend is Monday, March 3rd. Corteva’s dividend payout ratio is currently 68.69%.

Corteva declared that its board has approved a share repurchase program on Tuesday, November 19th that allows the company to buyback $3.00 billion in outstanding shares. This buyback authorization allows the company to repurchase up to 7.5% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on CTVA shares. Citigroup increased their target price on shares of Corteva from $69.00 to $74.00 and gave the stock a “buy” rating in a research report on Wednesday, January 29th. Royal Bank of Canada lifted their price objective on Corteva from $68.00 to $73.00 and gave the company an “outperform” rating in a report on Thursday, December 19th. Oppenheimer restated an “outperform” rating and issued a $70.00 price target (up previously from $69.00) on shares of Corteva in a research report on Friday, November 8th. Wells Fargo & Company increased their price objective on shares of Corteva from $67.00 to $73.00 and gave the stock an “overweight” rating in a research note on Tuesday, January 28th. Finally, Barclays boosted their target price on shares of Corteva from $62.00 to $64.00 and gave the company an “equal weight” rating in a research report on Tuesday, January 21st. One analyst has rated the stock with a sell rating, three have given a hold rating and fourteen have assigned a buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $67.06.

Hedge Funds Weigh In On Corteva

Institutional investors have recently bought and sold shares of the company. Noble Wealth Management PBC purchased a new position in Corteva in the 4th quarter valued at approximately $26,000. Hager Investment Management Services LLC bought a new stake in shares of Corteva during the 4th quarter valued at $27,000. Golden State Wealth Management LLC purchased a new stake in Corteva during the 4th quarter worth about $32,000. Capital Advisors Ltd. LLC grew its holdings in Corteva by 44.4% during the 3rd quarter. Capital Advisors Ltd. LLC now owns 566 shares of the company’s stock valued at $33,000 after buying an additional 174 shares in the last quarter. Finally, Centricity Wealth Management LLC bought a new stake in shares of Corteva during the fourth quarter valued at about $34,000. Hedge funds and other institutional investors own 81.54% of the company’s stock.

Corteva Price Performance

The business’s 50-day moving average price is $60.22 and its 200 day moving average price is $58.14. The company has a market capitalization of $42.86 billion, a P/E ratio of 63.05, a price-to-earnings-growth ratio of 1.71 and a beta of 0.78. The company has a quick ratio of 0.96, a current ratio of 1.50 and a debt-to-equity ratio of 0.08.

Corteva Company Profile

Corteva, Inc operates in the agriculture business. It operates through two segments, Seed and Crop Protection. The Seed segment develops and supplies advanced germplasm and traits that produce optimum yield for farms. It offers trait technologies that enhance resistance to weather, disease, insects, and herbicides used to control weeds, as well as food and nutritional characteristics.