Will Altaba Inc. (AABA) Stock Be Helped By This Analyst Note?

Analysts at JP Morgan, assumed coverage of Altaba Inc. (NASDAQ:AABA) with Overweight recommendation, according to their opinion released on August 24. Gabelli & Co analysts have downgraded their rating of AABA stock from Buy to Hold in a separate flash note to investors on July 11. Analysts at MKM Partners are sticking to their Buy recommendation. However, on February 23, they lifted target price for these shares to $112 from $76. Analysts at MKM Partners, made their first call for the stock with a Buy rating, according to a research note that dated back to February 23.

In the period that ended January 31, 2019, short interest in Altaba Inc. (NASDAQ:AABA) stock is on the rise. The 9.31% advance could be an indication that investors and traders expect a deterioration in the stock price, often as a result of a deterioration in the business’ fundamentals. The average analyst recommendations at 2.5 suggests buying these shares. Between January 15 and January 31, the total number of shorted shares amounted to 21.22 million shares. That was 1,806,317 more shares than the total of 19.41 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go down. Average daily volume for AABA at the January 31st settlement plunged to 7,455,377, as compared to 8,628,900 at the January 15th report. That brought days to cover to 2.845767, a 26.51% increase from the 2.249412 days to cover recorded at the prior short interest data release.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Altaba Inc. (NASDAQ:AABA)’s prospects. The earliest insider trade took place on 03/12/2018. Wellman Alexi parted with a total of 1.26 thousand shares of company at average share price of $76.9. The total for the sales was set at $97.05 thousand. After this transaction, the CFO account balance stood at 16.64 thousand shares. The stock lost -10.13 percent since that insider sale. On 03/06/2018, Wellman Alexi, CFO, sold 1.94 thousand shares at a price per share of $75.04. This removed 145.58 thousand shares from the insider’s fortune and the stock saw a -7.9 percent retreat in value since the news became public. This transaction left 17.91 thousand shares in the CFO account. On 01/19/2018, 10% Owner Tci Fund Management Ltd performed a sale transaction worth $90.08 million. This sale at $74.2 each has eliminated 1.21 million shares from the insider’s portfolio position. Meanwhile, shares have recorded -6.86 percent decrease since the transaction was reported. The insider now is left with 84.71 million shares remaining in the account. Braham Tor, who performs the Director job, sold 10 thousand shares for $688.3 thousand. The disposal occurred on 11/29/2017 was priced at $68.83 per share. The share price soared 0.41 percent since the reporting date. Braham Tor now left with a stake of 9.43 thousand AABA stock worth $646.23 thousand after the insider selling.

Altaba Inc. (AABA) is expected to jump by 16.79 percent over the next 12 months when compared to the closing price of the stock of $68.5 on Monday, February 11, according to price target estimates compiled by finviz.

The shares are currently floating around the first support level of $68.15. Below this, the next support is placed in the zone of $67.8. Till the time, the AABA stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 63.64 on daily chart, which may remain a cause for concern. If the price breaks below $67.8 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $69.19 mark may result into a pull-back move towards $69.88 level.

AABA shares dropped -0.02 points or -0.03 percent on Monday to $68.5 with a light trade volume of 2.916 million shares. After opening the session at $68.99, the shares went as high as $69.53 and as low as $68.49, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $41.3 billion and now has 602.6 million shares outstanding. Altaba Inc. (AABA) stock has gained 8.54 percent of market value in 21 trading days.

AABA stock has a trailing 3-year beta of 0, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $28.21 a share in the trailing twelve months. The stock’s value has surged 18.23 percent year to date (YTD) against a decline of -0.94 percent in 12 month’s time. The company’s shares still trade -16.92 percent away from its 1-year high of $82.45 and 25.11 percent up from 52-week low of $54.75. The average consensus rating on the company is 2.5, 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 Altaba Inc. (AABA) are trading at a P/E ratio of 2.47 times earnings reported for the past 12 months. The industry AABA operates in has an average P/E of 12.86. Its P/E ratio went as low as 2.79X and as high as 31.7 over the 5-year span. Further, it is sporting a 155.15 on the Price-to-Sales ratio. Compare this with the industry average P/S of 29.39. 0 percent is the gross profit margin for Altaba Inc. and operating margin sits at 0 percent. Along with this, the net profit margin is 0 percent.