Herd Of Investors Is Moving Into Avaya Holdings Corp. (AVYA)

Avaya Holdings Corp. (AVYA) will probably climb 44.75 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $32 price as 12-month high target. This represents a whopping 97.78 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $21, which represents a return potential of 29.79 percent when compared to the closing price of the stock of $16.18 on Wednesday, February 13. The lowest price target for the stock is $17.5 — slightly more than 8.16 percent from AVYA’s current share price.

The stock is currently hovering around the first support level of $15.73. Below this, the next support is placed in the zone of $15.29. Till the time, the AVYA stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 46.92 on daily chart, which may remain a cause for concern. If the price breaks below $15.29 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $16.41 mark may result into a pull-back move towards $16.65 level.

On 13th of February, Avaya Holdings Corp. (NYSE:AVYA) shares ended higher after a volatile session. The shares accumulated 0.71 points or 4.59 percent at $16.18 with a heavy trade volume of 1.471 million shares. After opening the session at $15.6, the shares went as high as $16.2 and as low as $15.52, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $1.77 billion and now has 109.66 million shares outstanding. Avaya Holdings Corp. (AVYA) stock has gained 3.85 percent of market value in 21 trading days.

AVYA 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 $27.28 a share in the trailing twelve months. The stock’s value has surged 11.13 percent year to date (YTD) against a decline of -22.95 percent in 12 month’s time. The company’s shares still trade -31.9 percent away from its 1-year high of $23.76 and 15.9 percent up from 52-week low of $13.96. 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 Avaya Holdings Corp. (AVYA) are trading at a P/E ratio of 30.84 times earnings reported for the past 12 months. The industry AVYA operates in has an average P/E of 17.54. Its P/E ratio went as low as 0.82X and as high as 0.82 over the 5-year span. Further, it is sporting a 0.62 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.79. 52.8 percent is the gross profit margin for Avaya Holdings Corp. and operating margin sits at 0 percent. Along with this, the net profit margin is 0 percent.

Let’s take a look at some insider activity at Avaya Holdings Corp. (NYSE:AVYA) and see the pattern.