Does This Provide a Reason to Sell Axalta Coating Systems Ltd. (AXTA)? The Stock Has Formed Ascending Triangle Pattern

July 13, 2018 - By Sonya McDaniel

The stock of Axalta Coating Systems Ltd. (AXTA) formed an ascending triangle with $28.93 target or 4.00 % below today’s $30.14 share price. The 5 months triangle pattern indicates high risk for the $7.39B company. If the $28.93 price target is reached, the company will be worth $295.72M less.
The ascending triangle is a questionable performer despite its reputation as a reliable chart pattern. The ascending triangle has break even failure rate for up and down breakouts of 13% and 11%, respectively. The average rise and decline is 35% and 19%. The throwback or so called pullback rates are: 57% and 49%. The stocks meeting their targets is high for this type of breakout: 75% and 68% percent.

The stock increased 0.37% or $0.11 during the last trading session, reaching $30.14. About 808,505 shares traded. Axalta Coating Systems Ltd. (NYSE:AXTA) has risen 2.73% since July 13, 2017 and is uptrending. It has underperformed by 9.84% the S&P500.

Analysts await Axalta Coating Systems Ltd. (NYSE:AXTA) to report earnings on August, 2. They expect $0.36 earnings per share, up 16.13 % or $0.05 from last year’s $0.31 per share. AXTA’s profit will be $88.30 million for 20.93 P/E if the $0.36 EPS becomes a reality. After $0.27 actual earnings per share reported by Axalta Coating Systems Ltd. for the previous quarter, Wall Street now forecasts 33.33 % EPS growth.

Axalta Coating Systems Ltd. (NYSE:AXTA) Ratings Coverage

Among 9 analysts covering Axalta Coating Systems (NYSE:AXTA), 2 have Buy rating, 0 Sell and 7 Hold. Therefore 22% are positive. Axalta Coating Systems had 13 analyst reports since January 16, 2018 according to SRatingsIntel. The stock of Axalta Coating Systems Ltd. (NYSE:AXTA) has “Hold” rating given on Friday, April 27 by Bank of America. Seaport Global downgraded Axalta Coating Systems Ltd. (NYSE:AXTA) rating on Tuesday, April 17. Seaport Global has “Hold” rating and $3600 target. The rating was downgraded by J.P. Morgan on Wednesday, May 30 to “Hold”. Susquehanna maintained the shares of AXTA in report on Wednesday, February 14 with “Hold” rating. The firm has “Overweight” rating given on Thursday, April 26 by JP Morgan. The stock has “Buy” rating by RBC Capital Markets on Thursday, February 8. The stock of Axalta Coating Systems Ltd. (NYSE:AXTA) has “Neutral” rating given on Wednesday, May 30 by JP Morgan. The stock of Axalta Coating Systems Ltd. (NYSE:AXTA) has “Hold” rating given on Wednesday, April 25 by BMO Capital Markets. The rating was initiated by BMO Capital Markets on Tuesday, March 27 with “Hold”. On Wednesday, July 11 the stock rating was maintained by Nomura with “Neutral”.

Another recent and important Axalta Coating Systems Ltd. (NYSE:AXTA) news was published by Gurufocus.com which published an article titled: “Global Materials Industry Foresees Growth” on July 12, 2018.

Axalta Coating Systems Ltd., through its subsidiaries, makes, markets, and distributes coatings primarily for the transportation industry. The company has market cap of $7.39 billion. It operates through two divisions, Performance Coatings and Transportation Coatings. It has a 177.29 P/E ratio. The Performance Coatings segment offers various water and solvent borne products and systems that are used to refinish damaged vehicles for independent body shops, multi-shop operators, and original equipment maker dealership body shops.

Axalta Coating Systems Ltd. (NYSE:AXTA) Ratings Chart

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