Sell Vedanta, target Rs 188: Aditya Agarwal

Aditya Agarwal

Way2Wealth Brokers

Vedanta has been in a downtrend since the past several months and formed a lower top lower bottom formation. Recently, the stock hit a fresh 52-week low near Rs 200 levels and rebound sharply.

However, the bounce got resist near Rs 227 levels as this level coincided with the 61.8�percent retracement of its previous daily swing move. The lower top lower bottom formation on the daily chart is intact.

The daily RSI (14) had signaled negative reversal and impact of the said pattern was seen in past few trading sessions. Hence, we recommend traders to go short in this counter in a range of Rs 218 to Rs 221 with a price target of Rs 188. A stop loss should be placed at Rs 240.

Disclaimer: The author Head of Technical Research, Way2Wealth Brokers Pvt. Ltd. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. First Published on Aug 3, 2018 12:07 pm

Why Tyson Foods Stock Lost 16% in July

What happened

Tyson Foods (NYSE:TSN) underperformed the market last month by shedding 16% compared to a 3.6% increase in the S&P 500, according to data provided by S&P Global Market Intelligence.

The slump added to a rough year so far for the meat specialist's investors, as shares are down by nearly 30% so far in 2018.

^SPX data by YCharts.

So what

Investors reacted harshly to a sharp downgrade in the company's short-term earnings expectations. Late in the month, Tyson executives said that profits should come in between $5.70 and $6.00 per share rather than the previous target range of $6.55 to $6.70�per share.

Image source: Getty Images.

Management noted several negative trends that contributed to the weakening outlook, including tariffs that are pushing up export prices and an imbalance between supply and demand for chicken and pork products. "The combination of changing global trade policies here and abroad," CEO Tom Hayes said on July 30, "and the uncertainty of any resolution, have created a challenging market environment."

Now what

Hayes and his team believe they can deal with many of the cost and pricing challenges by aggressively managing expenses. However, the company's updated outlook, due when it posts quarterly results on Aug. 6, will likely reflect expectations for continued sluggishness on both the top and bottom lines.

Roku (ROKU) Upgraded to “Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of Roku (NASDAQ:ROKU) from a hold rating to a buy rating in a research report sent to investors on Friday morning. Zacks Investment Research currently has $55.00 price objective on the stock.

According to Zacks, “Roku, Inc. is involved in creating streaming platform for delivering entertainment to the television. The Company’s products primarily includes Roku 4, Roku 3, Roku 2, Roku 1, Roku Streaming Stick and accessories such as cables, remote controls, power adapters and headphones. It operates primarily in the United States, Canada, the United Kingdom, the Republic of Ireland, Mexico and France. Roku, Inc. is based in SARATOGA, United States. “

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Other research analysts have also recently issued reports about the company. Oppenheimer raised Roku from a market perform rating to an outperform rating and set a $50.00 target price on the stock in a research report on Tuesday, July 3rd. BidaskClub raised Roku from a sell rating to a hold rating in a research report on Wednesday, May 9th. Macquarie started coverage on Roku in a research report on Thursday, June 14th. They set an outperform rating and a $49.00 price objective on the stock. ValuEngine raised Roku from a strong sell rating to a sell rating in a research report on Monday, April 2nd. Finally, UBS Group raised Roku from a market perform rating to an outperform rating in a research report on Tuesday, July 3rd. Seven research analysts have rated the stock with a hold rating, eight have issued a buy rating and one has assigned a strong buy rating to the company. The stock has a consensus rating of Buy and a consensus price target of $43.68.

Roku traded down $0.02, hitting $49.77, on Friday, Marketbeat reports. The stock had a trading volume of 4,556,599 shares, compared to its average volume of 6,367,259. The stock has a market capitalization of $4.96 billion and a price-to-earnings ratio of -22.22. Roku has a 52-week low of $15.75 and a 52-week high of $58.80.

Roku (NASDAQ:ROKU) last announced its earnings results on Wednesday, May 9th. The company reported ($0.07) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.15) by $0.08. The firm had revenue of $136.58 million during the quarter, compared to analysts’ expectations of $127.55 million. The company’s revenue for the quarter was up 36.5% on a year-over-year basis. During the same period in the previous year, the business posted ($1.79) earnings per share. equities analysts forecast that Roku will post -0.3 earnings per share for the current year.

In related news, CEO Anthony J. Wood sold 248,578 shares of Roku stock in a transaction that occurred on Friday, June 15th. The stock was sold at an average price of $43.73, for a total transaction of $10,870,315.94. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, VP Chas Smith sold 87,272 shares of Roku stock in a transaction that occurred on Wednesday, April 25th. The shares were sold at an average price of $31.95, for a total value of $2,788,340.40. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 922,216 shares of company stock worth $39,356,537. Insiders own 0.55% of the company’s stock.

Institutional investors and hedge funds have recently modified their holdings of the stock. Thompson Davis & CO. Inc. raised its stake in Roku by 280.3% during the 1st quarter. Thompson Davis & CO. Inc. now owns 3,803 shares of the company’s stock valued at $118,000 after purchasing an additional 2,803 shares during the period. The Manufacturers Life Insurance Company bought a new stake in Roku during the 4th quarter valued at approximately $130,000. BNP Paribas Arbitrage SA bought a new stake in Roku during the 1st quarter valued at approximately $156,000. Wealthcare Advisory Partners LLC raised its stake in Roku by 5,900.0% during the 1st quarter. Wealthcare Advisory Partners LLC now owns 6,000 shares of the company’s stock valued at $187,000 after purchasing an additional 5,900 shares during the period. Finally, Prime Capital Investment Advisors LLC bought a new stake in Roku during the 1st quarter valued at approximately $202,000. 16.52% of the stock is currently owned by institutional investors.

Roku Company Profile

Roku, Inc operates a TV streaming platform. The company operates in two segments, Player and Platform. Its platform allows users to search, discover, and access approximately 500,000 movies and TV episodes, as well as live sports, music, news, and others. As of December 31, 2017, the company had 19.3 million active accounts.

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