Invesotrs Wanting To Tap Brakes On ABB Ltd (ABB)?

Considering all key technical indicators, a 8% Sell signal has occurred for ABB Ltd (NYSE:ABB). The stock is also flashing a Hold from the Barchart TrendSpotter trading system. Traders hoping to speculate on the ABB’s short-term trajectory should know that short terms indicators for the stock averaged 40% Buy with an average daily trading volume over the past 20 days at 2651220 shares. ABB stock has overall a 0.25% Sell signal considering medium term indicators and the 50-day average daily volume remained almost 2700608 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was shares, is 67% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $19.28. Below this, the next support is placed in the zone of $19.15. Till the time, the ABB stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 51.22 on daily chart, which may remain a cause for concern. If the price breaks below $19.15 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $19.51 mark may result into a pull-back move towards $19.61 level.

ABB Ltd (ABB) is projected to climb by 16.39 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $30.43-month high price target. This represents a whopping 56.86 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $24.4, which represents a return potential of 25.77 percent when compared to the closing price of the stock of $19.4 on Friday, January 11. The lowest price target for the stock is $17 — slightly more than -12.37 percent from ABB’s current share price.

Here’s a rundown of insider trading activity for sense of ABB Ltd (NYSE:ABB).

ABB shares dropped -0.41 points or -2.07 percent on Friday to $19.4 with a heavy trade volume of 3.808 million shares. After opening the session at $19.35, the shares went as high as $19.49 and as low as $19.26, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $43.4 billion and now has 2.24 billion shares outstanding. ABB Ltd (ABB) stock has gained 2.81 percent of market value in 21 trading days.

Analysts at Vertical Research cut their rating on shares of ABB Ltd (NYSE:ABB) from Hold to Sell in their opinion released on January 11. BofA/Merrill analysts bumped their recommendation on ABB stock from Neutral to Buy in a separate flash note to investors on January 08. Analysts at HSBC Securities issued an upgrade from Hold to Buy for the stock, in a research note that dated back to December 10.

ABB stock has a trailing 3-year beta of 1.13, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.05 a share in the trailing twelve months. The stock’s value has surged 2.05 percent year to date (YTD) against a decline of -29.56 percent in 12 month’s time. The company’s shares still trade -32.33 percent away from its 1-year high of $28.67 and 7.51 percent up from 52-week low of $18.05. The average consensus rating on the company is 2.3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of ABB Ltd (ABB) are trading at a P/E ratio of 19.13 times earnings reported for the past 12 months. The industry ABB operates in has an average P/E of 17.43. Its P/E ratio went as low as 18.89X and as high as 26.01 over the 5-year span. Further, it is sporting a 1.2 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.59. 29.8 percent is the gross profit margin for ABB Ltd and operating margin sits at 9.4 percent. Along with this, the net profit margin is 6.2 percent.

ABB will be declaring its Q4 financial results on February 28. Analysts are forecasting revenue to climb 7.5 percent to $9.98B in the next fiscal quarter, while earnings are seen soaring by nearly 9.09 percent to $0.36 per share. History has shown that shares in ABB Ltd have gone up on 15 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.34 per share, worse than the $0.37, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $9.26B, worse than the $9.38B analysts expected. Earnings are estimated to increase by 18 percent this year, 11.45 percent next year and continue to increase by 6.2 percent annually for the next 5 years.