How Bullish Are Investors About Nielsen Holdings plc (NLSN)?

On December 03, 2019, Nielsen Holdings plc (NYSE:NLSN) shares gained 0.15% or 0.03 points to close at $19.5 with a heavy trading volume of 3.176 million shares. It opened the trading session at $19.29, the shares rose to $19.51 and dropped to $19.2, the range by which the price of stock traded the whole day. The company now has a market cap of $7.04 billion and currently has 360.91 million outstanding shares. Nielsen Holdings plc (NLSN) stock has plunged -4.6 percent of market value in 21 trading days.

NLSN stock’s trailing 3-year beta is 0.9, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was -$4.18 share in the trailing 52 weeks. The stock’s value fallen -16.42 percent year to date (YTD) compared to a decline of -28.23 percent in 52 week’s period. The firm’s shares are still trading -31.58 percent below its 1-year high of $28.50 and 8.7 percent up from 52-week low of $17.94. The average consensus ranking on the company is 2.2, 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.

Nielsen Holdings plc (NLSN) is most likely going to rise 29.13 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $33-month high price target. This represents a whopping 69.23 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $25, which means a return possibility of 28.21 percent in comparison with the closing price of the stock of $19.5 on December 03. The lowest price set for the stock is $20 — just above 2.56 percent from NLSN share price now.

Past records have indicated that shares in Nielsen Holdings plc declined on 21 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 NLSN’s Q4 earnings on February 17. Analysts are predicting revenue to climb 1 percent to $1.68B in the financial fourth quarter, while EPS will soar by about 53.57 percent to $0.43 per share. In the last quarter, it earnings of $0.51 per share came better than the $0.43017, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $1.66B, topping the $1.64B analysts had expected. Earnings are seen to rise by -277.6 percent this year, 1.44 percent in the coming year and the trend continues by -2 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at Nielsen Holdings plc (NYSE:NLSN) and observe the pattern. The earliest insider trade happened on 12/03/2018. Charlton Jeffrey parted with a total of 6.34 thousand shares of the firm at average share price of $27.46. The total amount for the sale was set at $174.01 thousand. On completing this exchange, the SVP & Corporate Controller account balance was 19.93 thousand shares. The stock lost -29.1 percent from that insider sale. On 04/27/2018, POZEN ROBERT C, Director, did a sale of 12.21 thousand shares at a price of $31.96 per share. This got rid of 390.23 thousand shares from the insider’s fortune and the stock experienced a -39.08 percent retreat in price since the news became public. This exchange saw 211.8 thousand shares get out from the Director account.

On 03/08/2018, CFO JACKSON JAMERE recorded a sale transaction valued at $626.43 thousand. The sale at $32.97 a share has eliminated 19 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -40.95 percent decrease since the transaction reporting date. The company insider is left with 71.43 thousand shares remaining in the account. JACKSON JAMERE, who works as CFO at the company, performed a sale of 16 thousand shares in a transaction worth $580.8 thousand. The disposal recorded on 12/14/2017 was priced at $36.3 per share. The stock price plunged -46.36 percent since the transaction. JACKSON JAMERE currently holds a stake of 93.14 thousand in NLSN stock which is worth $1.82 million after the insider selling.

The stock is lingering around the initial support level of $19.3. After this, the following support is at the zone of $19.09. Up until the time the NLSN stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 37.57 on the daily chart, and this may be a cause for comfort. In case the price goes below $19.09 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $19.61 level may cause a pull-back move approaching $19.71 mark.

The industry NLSN deals with has an average P/E of 36.4. Its P/B ratio is standing at 3.2X compared to the 4.9 industry average. It is additionally sporting a 1.1 on the Price-to-Sales ratio, compared to the industry’s P/S average of 3.8. Nielsen Holdings plc has a 56.8% gross profit margin, with its operating margin around -23%. Alongside this, the company’s net profit margin currently stands at -19.5%.