Of the 13 analysts covering US-based (SPY) Brocade Communications Systems (BRCD), only one has recommended a “buy,” while 13 have recommended a “hold.” The analyst consensus target price for the stock is $12.45, and the median target estimate for the stock is $12.75.
Brocade is thus trading at a discount of 1.3% to the analysts’ median estimate. By comparison, peer companies Hewlett Packard Enterprise (HPE), NetApp (NTAP), and Cisco Systems (CSCO) are trading at discounts of 8.5%, 12%, and 5%, respectively, to their analysts’ median estimates.
Shareholder returns and stock trends
As of May 8, 2017, Brocade has generated investor returns of 55.8% in the trailing-12-month period and 0.7% in the trailing-one-month period.
By comparison, BRCD generated -21.2% in 2015 and 39% in 2016 and has generated returns of 0.9% YTD (year-to-date) as of May 8. The company’s share price has risen 0.1% in the trailing-five-day period.
On May 8, BRCD closed the trading day at $12.59. Based on this figure, here’s how the stock fared in terms of its moving averages:
- 1.1% above its 100-day moving average of $12.45
- 1% above its 50-day moving average of $12.47
- 0.43% above its 20-day moving average of $12.54
MACD and RSI
A company’s MACD (moving average convergence divergence) is the difference between its short-term and long-term moving averages. BRCD’s 14-day MACD is now 0.03—a positive figure that indicates a downward trading trend.
BRCD’s 14-day RSI (relative strength index) reading is 65, which shows that the stock has likely been overbought. Generally, if an RSI reading is above 70, it indicates that a stock has been overbought. An RSI figure of below 30 suggests that a stock has been oversold.