On March 29, 2018, Chemours (CC) announced a price increase for its range of fluoropolymer products across the globe. Chemours will increase the prices up to 10%. In some cases, the price increase could be a little bit higher than the range. The products that will be impacted include Teflon PTFE and melts, Viton FKM Fluoroelastomer products, Nafion membranes and dispersions, Krytox lubricants, Capstone repellents and surfactants, and Teflon coatings.
The price increase will be effective on April 1, 2018. Chemours’ previous price hikes were in December 2017. The impact of the new price hikes will likely be visible in Chemours’ 2Q18 earnings. The price hikes could improve Chemours’ revenue and margins if the volumes don’t decline on a YoY (year-over-year) basis.
Update on Chemours’ stock price
Chemours gained 3.4% and closed at $48.71 for the week ending March 29, 2018. Despite these gains, Chemours stock traded 2.8% below the 100-day moving average price of $50.10, which indicates the downward trend in the stock. On a year-to-date basis, the stock has declined 5.9%. Tronox (TROX), Kronos (KRO), and Huntsman (HUN) have declined 10.1%, 12.30%, and 12.1%, respectively. Analysts have recommended a target price of $61.50 for Chemours, which implies a return potential of 26.30% over the closing price of $48.71 as of March 29, 2018. Chemours’ 14-day relative strength index of 50 indicates that the stock isn’t overbought or oversold.
Investors can hold Chemours indirectly by investing in the Guggenheim S&P Spin-Off ETF (CSD). CSD has invested 3.5% of its portfolio in Chemours as of March 29, 2018.