Analyst upgrades and downgrades can have a significant impact on stock prices. Despite the opportunity for short-term earnings generated by these stocks, analysts may overestimate them, resulting in negative returns.
Analysts classify stock ratings into three categories:
Ratings of “BUY” indicate that the stock value is likely to improve in the near future or will outperform the market. ” Overweight” and “Outperform” are also terms that can be used by analysts to identify a “Buy ”.
“Hold” recommendations indicate that the stock is likely to perform similarly to the market as a whole. An analyst who does not recommend purchasing or selling a stock gives it a Hold rating. “Hold” is also referred to as equal weight by analysts as well as by market performance.
An analyst rating of “Sell” indicates that the stock will lose value in the near future. Stocks do not generally receive a “sell” rating from analysts, since they tend to rate them “positive” or “neutral.” Underperform and underweight are also terms used to describe “sell” ratings. “Sell” ratings are also described by terms such as “Underperform” and “Underweight”.
With this outlook, analysts have a consensus recommendation rating of 2.90 for the stock, suggesting that investors Overweight the stock. Wells Fargo issued a stock update for Umpqua Holdings Corporation (NASDAQ: UMPQ) on December 15, 2022, in which the firm assigned an “Overweight” rating. Keefe Bruyette on February 11, 2022, rated the stock at “an Mkt perform,”. 6 analysts offering their rating for the stock are split like this: 4 of the 6 rates it as a Hold; 2 see it a buy, while 0 say it is overweight. Although bearish, it is notable that the stock is well above its 200-day simple moving average by -2.81%, while it is -7.34% below and -8.73% below its SMA50 and SMA20 respectively. The volume of shares traded in the last session stands at 1.99 million against a 3-month average of 1.47M.
Looking at the support for the DXC Technology Co (NYSE: DXC), a number of firms have released research notes about the stock. JP Morgan stated their Neutral rating for the stock in a research note on December 15, 2022, with the firm’s price target at $31-$33. Susquehanna’s coverage for the DXC Technology Company (DXC) stock in a research note released on September 16, 2022, offered a Neutral rating with a price target of $31. Susquehanna’s coverage for the DXC Technology Company (DXC) stock in a research note released on September 16, 2022, offered a Neutral rating with a price target of $31. BofA Securities was of a view on March 09, 2022, that the stock is underperforming, while MoffettNathanson gave the stock a Neutral rating on September 22, 2021. BofA Securities on their part issued a Buy rating on September 14, 2021.
In December 15, 2022, several analysts downgraded their positions on the Snap Inc. (NYSE: SNAP) stock and predicted its performance to their investors. The analysts at Jefferies believe SNAP is still a Hold and set the price target between $12 and $10. Another analyst that has a Hold rating for SNAP is Truist, which set a price target of between $12 and $10. Susquehanna reiterated their Neutral position on the stock ($11 and $8) and Stifel also reiterated their Hold position on the stock ($14 and $9).