Insiders Are Selling Big on ABB Ltd (ABB)

The 12-month median price target for ABB Ltd (ABB) assigned by the analysts stands at $24.17, which represents a return potential of 24.85 percent when compared to the closing price of the stock of $19.36 on Thursday, February 07. The lowest price target for the stock is $17 — slightly more than -12.19 percent from ABB’s current share price. The stock will probably climb 16.63 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $30.18 price as 12-month high target. This represents a whopping 55.89 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 51.88 on daily chart, which may remain a cause for concern. If the price breaks below $19.14 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $19.47 mark may result into a pull-back move towards $19.58 level. The stock is currently hovering around the first support level of $19.25. Below this, the next support is placed in the zone of $19.14. Till the time, the ABB stock trades above this level, bulls have nothing to fear.

Shares of ABB Ltd (ABB) are trading at a P/E ratio of 18.73 times earnings reported for the past 12 months. The industry ABB operates in has an average P/E of 13.14. 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 1.14 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.4. 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.

On 7th of February, ABB Ltd (NYSE:ABB) shares ended lower after a volatile session. The shares dropped -0.24 points or -1.22 percent at $19.36 with a heavy trade volume of 3.251 million shares. After opening the session at $19.44, the shares went as high as $19.47 and as low as $19.25, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $41.1 billion and now has 2.12 billion shares outstanding. ABB Ltd (ABB) stock has lost -0.72 percent of market value in 21 trading days.

In last reported earnings results, ABB 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. Investors will get their next glimpse of ABB’s Q4 earnings 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.

ABB stock has a trailing 3-year beta of 1.08, 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 1.84 percent year to date (YTD) against a decline of -26.64 percent in 12 month’s time. The company’s shares still trade -26.58 percent away from its 1-year high of $26.37 and 7.29 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.