When a stock like FMC Corp. reaches the price target a Wall Street analyst has set for it, the experts have two ways to react: downgrade FMC stock on its valuation, or instead re-adjust their target price to a higher level.
Analyst reaction in FMC Corp. may also depend on the fundamental business developments at that may be responsible for driving FMC stock prices higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 11 different analyst targets contributing to that average for FMC Corp., but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $48.00. And then on the other side of the spectrum one analyst has a target as high as $90.00. The standard deviation is $11.728.
But the whole reason to look at the average FMC price target in the first place is to tap into a “wisdom of crowds” effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with FMC crossing above that average target price of $75.18/share, investors in FMC stock have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $75.18 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover FMC Corp.:
|Recent FMC Analyst Ratings Breakdown|
|Current||1 Month Ago||2 Month Ago||3 Month Ago|
|Strong buy ratings:||9||10||9||9|
|Strong sell ratings:||0||0||0||0|
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on FMC — FREE.