What’s Wall Street Saying About Viacom?

Viacom’s Woes in 2Q16: Declining Ad Revenues and Affiliate Fees

(Continued from Prior Part)

Shareholder returns and stock trends

On April 28, 2016, Viacom’s (VIAB) last trading price was $42.40. The stock was trading 6% above its 20-day moving average of $40, 8.7% above its 50-day moving average of $39, and 6% above its 100-day moving average of $40.

As of April 28, 2016, Viacom generated returns of -41.3% for the trailing 12 months and 5.6% in the trailing-one-month period. Viacom’s share price fell by 0.4% in the trailing-five-day period. In comparison, peers CBS (CBS), The Walt Disney Company (DIS), and 21st Century Fox (FOXA) generated returns of 0.5%, 1.1%, and 1.2%, respectively, in the trailing-five-day period.

Moving average convergence divergence

A company’s MACD (moving average convergence divergence) is the difference between its short-term and long-term moving averages. Viacom’s 14-day MACD of 0.4 shows an upward trading trend, as the figure is positive.

Viacom’s 14-day RSI (relative strength index) is 57, which shows that the stock is leaning toward being overbought. If an RSI is above 70, it indicates that a stock has been overbought. An RSI below 30 suggests that a stock has been oversold.

Analyst recommendations

Of the 39 analysts covering Viacom, 15 have given it a “buy” recommendation, five a “sell,” and 19 a “hold.” The analyst stock price target for Viacom is $46.96, with a median target estimate of $46.50. As of April 28, 2016, Viacom was trading at a discount of 9.6% with respect to its median target.

Viacom accounts for 0.29% of the PowerShares QQQ Trust Series 1 ETF (QQQ). If you’re interested in exposure to the television sector, note that QQQ has 4.2% exposure there.

Browse this series on Market Realist:

• Part 1 - Why Is Viacom Still Optimistic About Its Advertising Revenues?

• Part 2 - Viacom’s Positive Outlook for Its Affiliate Fees

• Part 3 - Is Viacom Closing In on Sale of Its Minority Stake in Paramount?