Avaya Holdings Corp. [NYSE:AVYA] shares were trading 1.97% to $18.66 on Wednesday. Comparativley, The S&P 500 is trading at 0.55%. For the year, the stock is trading 35.56% and the five-day change stands at 20.39%.
AVYA’s next earning date is 12/18/2020. Currently, the company is booking earnings per share of -7.89 with the price-to-cash-flow at 34.72.
The company is also reporting -7.89 earnings per share.
Wait and see
Holding a Market Cap of $1.46 billion, Avaya Holdings Corp. has seen a trading range over the last year of $6.13-$18.40.
For the last five days, AVYA is up from its last closing price. The average shares trading hands each day is 1.57M, with average 10-day volume coming in at 2.3 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for AVYA. When we apply the Elder Force Index to Avaya Holdings Corp., we are seeing an Elder Force Indicator number of 431735.04.
The recent performance of the stock is another area that can tell traders how to proceed. AVYA is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 3.81. Moreover, the company’s enterprise value has gone from $3.66B to $3.10B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, AVYA made a profit of 397.0 million. Avaya Holdings Corp. also saw quarter revenue growth year over year of 1.26%. In addition, the company has operating cash flow of $143.0 million.
Looking at popular technical indicators, the company’s 5-day moving average is 17.84 compared to the 50-day moving average of 15.43. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. AVYA currently holds a 9-day RSI of 79.76%, while 100-day RSI stands at 57.31%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. AVYA’s 9-day MACD is 1.48 and the company’s 100-day MACD stands at 3.94.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 1.51% by insiders and 124.94% by institutions. Regarding institutional holdings, JP Morgan Chase & Company owns 8.23%, while the second top holder, Vanguard Group, Inc. (The), currently owns 8.00%.
Over the last six months, insiders have bought 28,700 with the most recent transaction from McGrath Kieran J, EVP & CFO, with a purchase at price 8.72 per share.
Overall, the recommended rating for AVYA is Moderate Buy. Currently, the company has 8 analysts watching the stock, and the average quarterly earnings estimate is 1.22. Quarterly revenue estimates are averaging 733.55M with the high estimate reaching 738M and the low at 729M.
To review, the current 1-year target estimate is sitting at 19.75, while the current price 18.66. Based on this, we expect the stock to rise considering the aforementioned fundamentals.