Chemours hikes fluoropolymer prices
On December 21, 2017, Chemours (CC) announced price hikes on some of its products. CC will increase the prices of Tefzel ETFE fluoropolymer products and Viton FKM fluoroelastomer products by up to 10%. The price increase will be effective on January 1, 2018, or as contracts allow.
The price increase is likely to boost the revenues and help to improve the margins of Chemours’ Fluoroproducts segment. This segment reported revenues of $637 million in 3Q17 as compared to $591 million in 3Q16, an increase of 7.8% on a year-over-year basis.
Update on Chemours stock price
Chemours stock gained 2.0% and closed at $49.02 for the week ended December 22, 2017. Despite the gain in stock price, Chemours traded 3.8% below the 100-day moving average price of $50.96, indicating the prevailing weakness in the stock. On a year-to-date basis, the stock has gained 121.9%. However, analysts expect further upside in the stock and have recommended a target price of $61.70, which implies a return potential of 25.9%. CC’s 14-day relative strength index of 45 indicates that the stock is neither overbought nor oversold.
Chemours outperformed the PowerShares DWA Momentum Portfolio (PDP), which rose 0.20% for the week. PDP has invested 1.7% of its portfolio in Chemours. The top holdings of the fund include Apple (AAPL), American Tower (AMT), and Lockheed Martin (LMT), which have weights of 3.2%, 2.7%, and 1.6%, respectively, as of December 22, 2017.