A federal judge has given merger approval for AT&T (T) and Time Warner (TWX), thus boosting investor confidence in Time Warner stock. Of the 26 analysts covering Time Warner, nine of them have rated the stock a “buy,” and 17 have rated it a “hold.” None of them have given the stock a “sell” rating.
Analysts have set a target price of $104.43 for TWX stock and a median consensus estimate of $105. Time Warner is trading at $96.22 as of June 12, an 8.4% discount to its consensus median target estimate.
Technical indicators for Time Warner
On June 12, Time Warner was trading 1.3% above its 50-day moving average of $95 and above its 100-day moving average of $95. The stock was also trading 2.4% above its 20-day moving average of $94. Time Warner has a 14-day RSI (relative strength index) of 65. An RSI above 70 indicates that the stock is overbought, and an RSI below 30 indicates an oversold stock.
Time Warner has an upper Bollinger Band of $96, a middle Bollinger Band of $94, and a lower Bollinger Band of $93. Bollinger bands are a combination of a stock’s moving averages.
TWX stock has a positive MACD (moving average convergence divergence) of 0.04, indicating an upward trading trend. A stock’s MACD is the difference between its short-term and long-term moving averages.
Investors seem positive on Time Warner after it got approval to merge with AT&T. Time Warner has returned 2.6% in the trailing month. Time Warner stock has fallen 3.7% in the trailing 12 months but has risen ~3% in the trailing five days.