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Facebook Generated Year-to-Date Stock Returns of 33%

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Shareholder returns and stock trends

Facebook (FB) generated investor returns of 29.3% in the trailing-12-month period and 11.9% in the trailing-one-month period. In comparison, it generated 42.8% in 2014 and 33% YTD (year-to-date). The firm’s share price rose 5.8% in the trailing-five-day period.

In comparison, Rackspace (RAX) and Akamai (AKAM), peer companies in the Internet Software & Services subsector, generated returns of -4.4% and 6.8%, respectively, in the trailing-one-month period.

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Moving averages

On October 26, 2015, Facebook closed the trading day at $103.77. Based on this figure, here’s how the stock fared in terms of its moving averages:

  • 14% above its 100-day moving average of $91.02
  • 12.2% above its 50-day moving average of $92.51
  • 9.3% above its 20-day moving average of $94.93

Facebook’s MACD and RSI

The MACD (moving average convergence divergence) is the difference between the short-term and long-term moving averages of a firm. Facebook’s 14-day MACD is 1.6. This positive figure indicates an upward trading trend.

The company’s 14-day RSI (relative strength index) is 74. This shows that the stock is overbought. Generally, if the RSI is above 70, it indicates that the stock is overbought. An RSI figure that’s below 30 suggests that a stock has been oversold.

Analysts recommendations

Out of 56 analysts covering the stock, 50 have a “buy” recommendation, one has a “sell” recommendation, and five have a “hold” recommendation. Analysts’ stock price target for the firm is $113.56 with a median target estimate of $15. Given these figures, Facebook is trading at a discount of 10% with respect to the median analyst price target.

Facebook is a part of the SPDR S&P 500 ETF Trust (SPY) and the First Trust Dow Jones Internet IndexSM Fund (FDN). Facebook accounts for 1.2% and 10.3% of the ETFs, respectively.

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