Buying Axalta Coating Systems Ltd. (AXTA) Stock Now May Be A Safer Move

The stock is lingering around the initial support level of $28.6. After this, the following support is at the zone of $27.59. Up until the time the AXTA stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 55.66 on the daily chart, and this may be a cause for concern. In case the price goes below $27.59 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $30.1 level may cause a pull-back move approaching $30.6 mark.

Axalta Coating Systems Ltd. (AXTA) is most likely going to rise 12.3 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $36-month high price target. This represents a whopping 21.62 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $33.5, which means a return possibility of 13.18 percent in comparison with the closing price of the stock of $29.6 on December 03. The lowest price set for the stock is $29 — just above -2.03 percent from AXTA share price now.

Let’s take a glimpse at some insider activity at Axalta Coating Systems Ltd. (NYSE:AXTA) and observe the pattern. The earliest insider trade happened on 06/05/2019. SHAVER CHARLES W parted with a total of 500 thousand shares of the firm at average share price of $25.24. The total amount for the sale was set at $12.62 million. On completing this exchange, the Director account balance was 242.37 thousand shares. The stock grew 17.27 percent from that insider sale. On 04/18/2019, Kramvis Andreas, Director, did a sale of 55.05 thousand shares at a price of $28.11 per share. This got rid of 1.55 million shares from the insider’s fortune and the stock experienced a 5.3 percent rally in price since the news became public. This exchange saw 36.87 thousand shares get out from the Director account. On 04/01/2019, Director SHAVER CHARLES W recorded a sale transaction valued at $7.91 million. The sale at $25.52 a share has eliminated 309.82 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 15.99 percent increase since the transaction reporting date. The company insider is left with 242.37 thousand shares remaining in the account. SHAVER CHARLES W, who works as Director at the company, performed a sale of 500 thousand shares in a transaction worth $13.36 million. The disposal recorded on 03/05/2019 was priced at $26.71 per share. The stock price soared 10.82 percent since the transaction. SHAVER CHARLES W currently holds a stake of 242.37 thousand in AXTA stock which is worth $7.17 million after the insider selling.

On December 03, 2019, Axalta Coating Systems Ltd. (NYSE:AXTA) shares gained 4.15% or 1.18 points to close at $29.6 with a heavy trading volume of 5.212 million shares. It opened the trading session at $28.2, the shares rose to $29.6 and dropped to $28.095, the range by which the price of stock traded the whole day. The company now has a market cap of $6.99 billion and currently has 236.3 million outstanding shares. Axalta Coating Systems Ltd. (AXTA) stock has plunged -0.34 percent of market value in 21 trading days.

Stock analysts at JP Morgan upped their rating on shares of Axalta Coating Systems Ltd. (NYSE:AXTA) from Neutral to a new rating of Overweight in their opinion released on October 25. Analysts at BofA/Merrill downgraded the company stock to a Neutral call from its previous Buy stance, in a flash note that dated back to August 16.

AXTA stock’s trailing 3-year beta is 1.42, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $1.11 share in the trailing 52 weeks. The stock’s value surged 26.39 percent year to date (YTD) compared to a rise of 18.26 percent in 52 week’s period. The firm’s shares are still trading -8.07 percent below its 1-year high of $32.20 and 37.2 percent up from 52-week low of $21.58. The average consensus ranking on the company is 2.4, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

Axalta Coating Systems Ltd. (AXTA) shares are trading at a P/E ratio of 24.9 times earnings posted in the trailing 12 months. The industry AXTA deals with has an average P/E of 23.6. Its P/B ratio is standing at 5.4X compared to the 3.4 industry average. It is additionally sporting a 1.5 on the Price-to-Sales ratio, compared to the industry’s P/S average of 1.9. Axalta Coating Systems Ltd. has a 34.4% gross profit margin, with its operating margin around 11.1%. Alongside this, the company’s net profit margin currently stands at 6.2%.

Past records have indicated that shares in Axalta Coating Systems Ltd. rose on 11 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of AXTA’s Q4 earnings on February 06. Analysts are predicting revenue to suffer decline of -3 percent to $1.13B in the financial fourth quarter, while EPS will soar by about 29.41 percent to $0.44 per share. In the last quarter, it earnings of $0.52 per share came better than the $0.21665, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $1.11B, missing the $1.12B analysts had expected. Earnings are seen to rise by 36.4 percent this year, 6.82 percent in the coming year and the trend continues by 8.22 percent every year in the next 5 years.