Price Don’t Lie: After Today’s Gap Down, Is KBR, Inc.’s Near-Term Analysis Negative?

Price Don't Lie: After Today's Gap Down, Is KBR, Inc.'s Near Term Analysis Negative?

The stock of KBR, Inc. (NYSE:KBR) gapped down by $0.72 today and has $12.68 target or 7.00% below today’s $13.63 share price. The 6 months technical chart setup indicates high risk for the $1.97 billion company. The gap down was reported on Oct, 4 by Barchart.com. If the $12.68 price target is reached, the company will be worth $137.90M less.
Gaps down are helpful for identifying a resistance level and to could also be used as a tradeable event. If traders are short the stock and it experiece gap down, then its usually advisable to hold the short for a bigger down move. Back-tests of such patterns show that two-thirds of the these patterns the stock performance worsens after the gap. The area gaps close 91% of the time, the breakaway gaps 1%, the continuation gaps 9% and the exhaustion gaps 64%. The stock decreased 9.91% or $1.5 during the last trading session, hitting $13.63. About 5.23 million shares traded hands or 335.83% up from the average. KBR, Inc. (NYSE:KBR) has declined 2.01% since March 1, 2016 and is downtrending. It has underperformed by 14.23% the S&P500.

Analysts await KBR, Inc. (NYSE:KBR) to report earnings on November, 7. They expect $0.32 EPS, down 20.00% or $0.08 from last year’s $0.4 per share. KBR’s profit will be $46.25M for 10.65 P/E if the $0.32 EPS becomes a reality. After $0.32 actual EPS reported by KBR, Inc. for the previous quarter, Wall Street now forecasts 0.00% EPS growth.

KBR, Inc. (NYSE:KBR) Ratings Coverage

Out of 7 analysts covering KBR Inc (NYSE:KBR), 1 rate it a “Buy”, 1 “Sell”, while 5 “Hold”. This means 14% are positive. KBR Inc has been the topic of 12 analyst reports since August 6, 2015 according to StockzIntelligence Inc. The rating was initiated by Citigroup on Friday, November 13 with “Sell”. M Partners maintained the shares of KBR in a report on Tuesday, September 13 with “Neutral” rating. The stock of KBR, Inc. (NYSE:KBR) earned “Neutral” rating by UBS on Wednesday, August 5. The firm has “Hold” rating given on Monday, May 2 by Johnson Rice. The stock has “Sell” rating given by Goldman Sachs on Monday, December 7. The firm has “Neutral” rating by M Partners given on Wednesday, June 29. The stock of KBR, Inc. (NYSE:KBR) has “Neutral” rating given on Thursday, August 6 by Bank of America. The stock of KBR, Inc. (NYSE:KBR) has “Neutral” rating given on Monday, March 28 by Goldman Sachs.

According to Zacks Investment Research, “KBR, Inc. is a leading global engineering, construction and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power and industrial markets. The company is a leader in many of the growing end-markets it serves, particularly gas monetization, having designed and constructed, alone or with joint venture partners, more than half of the world’s operating liquefied natural gas (LNG) production capacity. KBR offers a wide range of services through its Upstream, Downstream, Technology, Services, Government and Infrastructure, and Ventures business segments.”

Insitutional Activity: The institutional sentiment increased to 1.42 in Q2 2016. Its up 0.36, from 1.06 in 2016Q1. The ratio improved, as 31 funds sold all KBR, Inc. shares owned while 59 reduced positions. 28 funds bought stakes while 100 increased positions. They now own 136.05 million shares or 4.84% more from 129.78 million shares in 2016Q1.
Moreover, Capstone Asset Mgmt Communications has 0% invested in KBR, Inc. (NYSE:KBR) for 10,816 shares. Tiaa Cref Invest Mgmt Llc accumulated 0.01% or 669,277 shares. Quantbot Technology Lp holds 22,342 shares or 0.03% of its portfolio. Cna accumulated 137,159 shares or 0.45% of the stock. Pzena Investment Management Limited Liability Co holds 0.4% of its portfolio in KBR, Inc. (NYSE:KBR) for 4.89M shares. Glenmede Trust Na holds 0.02% of its portfolio in KBR, Inc. (NYSE:KBR) for 189,780 shares. Wells Fargo Mn last reported 707,807 shares in the company. Tudor Inv Et Al last reported 64,991 shares in the company. Moreover, Seizert Limited Co has 0.13% invested in KBR, Inc. (NYSE:KBR) for 262,882 shares. Aperio Grp Incorporated Limited Company holds 0% or 28,609 shares in its portfolio. Capstone Inv Advsrs Limited Liability Co accumulated 0% or 15,300 shares. Stonebridge Cap Mgmt holds 0.08% or 12,575 shares in its portfolio. Shelton Mngmt reported 14,971 shares or 0.02% of all its holdings. Whittier Tru holds 2,775 shares or 0% of its portfolio. Retirement System Of Alabama last reported 0.05% of its portfolio in the stock.

More recent KBR, Inc. (NYSE:KBR) news were published by: Investorplace.com which released: “Why Deutsche Bank AG (USA) (DB), Goldcorp Inc. (USA) (GG) and KBR, Inc. (KBR …” on October 03, 2016. Also Benzinga.com published the news titled: “Worst Performing Industries For October 3, 2016” on October 03, 2016. Forbes.com‘s news article titled: “Ex-Dividend Reminder: Motorola Solutions, KBR and Knoll” with publication date: September 09, 2016 was also an interesting one.

KBR Company Profile

KBR, Inc. (KBR), incorporated on March 21, 2006, is an engineering, procurement, construction and services company. The Firm supports global hydrocarbons and international Government services market sectors. The Firm offers a portfolio of technology and consulting services; engineering, construction, procurement and asset maintenance services, and base operational, logistics, life support and asset management services. The Firm operates through three business divisions: Technology & Consulting (T&C), Engineering & Construction (E&C), and Government Services (GS). The Firm provides services to a customer base, including international and national gas and oil companies, independent refiners, petrochemical producers, fertilizer producers, manufacturers and domestic and foreign Governments.

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