[Zacks] Potash Corporation of Saskatchewan Inc. (NYSE:POT)(TREND ANALYSIS) hit a new 52-week low of $23.57 on Sep 21 and eventually closed modestly higher at $23.70. Year-to-date, Potash Corp’s shares have recorded a negative return of around 30.54%.
Factors to Consider
Potash Corp.’s profit fell year over year in the second quarter of 2015, hurt by lower nitrogen prices. Earnings also trailed the Zacks Consensus Estimate. The company cut the top end of its earnings guidance range for 2015 factoring in pricing pressure and weak nitrogen market fundamentals.
Potash Corp. remains affected by macroeconomic uncertainties and is exposed to other issues such as price volatility and currency exchange fluctuation. Sluggishness across certain developing markets is affecting the global outlook. Moreover, expected reduction in planted acres for corn in North America coupled with depressed crop pricing has created uncertainty about potash consumption in 2015.
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Potash Corporation of Saskatchewan Inc. (NYSE:POT) stock is currently trading 41.09% below its 52-week-high, 1% above its 52-week-low. The 1-year stock price history is in the range of $21.93 – $37.6. Potash Corporation of Saskatchewan Inc. (POT) has a price to earnings ratio of 12.24 versus Basic Materials sector average of 17.25. POT stock price has underperformed the S&P 500 by 32.1%. The Agricultural company is currently valued at $18.49 billion and its share price closed the last trading session at $22.15. The stock has a 50-day moving average of $25.73 and a 200-day moving average of $30.
Potash Corporation of Saskatchewan Inc. (POT) current short interest stands at 8.93 million shares. It has increased by 5% from the same period of last month. Around 2% of the company’s shares, which are float, are short sold. With a 10-days average volume of 5.29 million shares, the number of days required to cover the short positions stand at 1.7 days.
The company is expected to announce next quarter earnings on October 22, at consensus estimate of $0.41. Potash Corporation of Saskatchewan Inc. (POT) reported last quarter earnings on July 30. The Agricultural company announced earnings per share of $0.5 against a consensus Street estimate of $0.52, missing estimate by $0.02. This corresponds to a decrease of $0.04 compared to the same quarter of the previous fiscal year.
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There are currently twenty-six analysts that cover Potash Corporation of Saskatchewan Inc. stock. Of those twenty-six, seven have a Buy rating, seventeen have a Hold rating and two have a Sell rating. On a consensus basis this yields to a Hold rating. The consensus target price stands at $41.57.
A recent analyst activity consisted of Macquarie downgrading their Neutral rating to Underperform on September 21. Macquarie decreased price target from $32 to $22. This corresponds to a 0.68% downside from the last closing price. On the date of report, the stock closed at $23.7.
Citigroup reiterated their Neutral stance on August 3, and decreased their price target from $30 to $29. This corresponds to a 30.93% upside from the last closing price. On the date of report, the stock closed at $27.33.
Another research firm was Raymond James who downgraded their Outperform rating to Market Perform on July 29. Raymond James decreased price target from $36 to $30. This translates to a 35.44% upside from the last closing price. On the date of report, the stock closed at $26.85.
Potash Corporation of Saskatchewan Inc., together with its subsidiaries, produces and sells fertilizers and related industrial and feed products primarily in the United States and Canada. The company mines and produces potash, which is used as fertilizer. It also offers solid and liquid phosphate fertilizers; animal feed supplements; and industrial acids that are used in food products and industrial processes. In addition, the company produces nitrogen fertilizers and nitrogen feed, as well as industrial products, including ammonia, urea, nitrogen solutions, ammonium nitrate, and nitric acid. Further, it holds the right to mine 785,867 acres of land in Saskatchewan; and 58,263 acres of land in New Brunswick in Canada. The company sells its fertilizers to retailers, dealers, cooperatives, distributors, and other fertilizer producers; industrial products primarily to chemical product manufacturers; and purified phosphoric acid directly to consumers of the product. Potash Corporation of Saskatchewan Inc. was founded in 1953 and is headquartered in Saskatoon, Canada.