Avaya stock: buy or sell?

AVYA stock price: $14.08 -0.42% At close on August 22nd, 2019

Updated on:
August 22nd, 2019

2

Avaya closed today at $14.08 and slightly fell a disappointing -0.42%. On August 20th AVYA skyrocketed an outstanding 10.90%.

Avaya Holdings Corp. operates as a holding company which through its subsidiary, develops business collaboration and communications solutions worldwide.

Should I buy Avaya stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with Avaya stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Avaya stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 6 ratings published for AVYA stock in the last 30 days.

The general sentiment of these ratings is bullish for AVYA stock, with 3 positive ratings.
Is AVYA a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-14Northland Securitiesn/aBuy
2019-8-14Morgan Stanleyn/aEqual Weight
2019-7-8Citigroupn/aHold
2019-3-11Guggenheimn/aBuy
2019-1-7Morgan Stanleyn/aEqual Weight
2019-1-25BarclaysEqual WeightOverweight

Avaya stock analysis

Daily outlook

Shares of Avaya slightly fell a disappointing -0.42% and closed at $14.08.

Shares of Avaya ended today at $14.08 and slightly fell a disappointing -0.42%. Since May when AVYA stock price broke down the SMA200d line, it slid $-4.28 per share (-23.31%).

AVYA stock chart (daily)

Weekly outlook

Avaya closed this week at $14.08 and climbed an extraordinary 12.46%.

Since price and 40-weeks moving average lines crossed down early May, AVYA fell $-4.71 per share (-25.07%). Trading stocks that are under the 40-weeks (that is, 200-days) moving average line is not recommended by many experts, as it indicates that the stock has not enough institutional support.

AVYA stock chart (weekly)

Avaya stock price history

Avaya stock went public on December 19th, 2017 with a price of $15.881. Since then, AVYA stock declined a -11.30%, with a yearly average of -11.30%.

1: Adjusted price after possible price splits or reverse-splits.

Avaya stock historical price chart

AVYA stock reached 52-week highs on August at $23.40, and all-time highs 2018-03-22 with a price of 23.76.

Avaya stock price target is $17.30

Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we found 5 price targets for AVYA stock:
AVYA stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-14Northland SecuritiesReiteratesn/a$21.00-
2019-8-14Morgan StanleyReiterates$18.50$14.00-24.3%
2019-7-8CitigroupSet Price Targetn/a$12.00-
2019-1-7Morgan StanleyInitiatesn/a$18.50-
2019-1-25BarclaysUpgrades$20.00$21.005%
(in average)$19.30$17.30-10.0%
The price target for Avaya stock is $17.30, moving in a range between $21.00 and $12.00. In average, analysts' outlook on AVYA price target is negative, downsizing the prediction by a -10.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Avaya disappointed experts on February when it posted an Earnings per Share (EPS) of $0.79 when the market consensus was $0.87.
AVYA earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/an/an/a
2017-Q2-n/a-0.18n/a
2017-Q32017-12-22n/an/an/a
2017-Q42018-03-01-0.04n/an/a
2018-Q12018-05-100.850.68-20.0%
2018-Q22018-08-090.770.41-46.8%
2018-Q32018-12-040.860.949.3%
2018-Q42019-02-110.870.79-9.2%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

Compared to 2017, last anual sales report draw a frightening correction of -31.33% to $2,247.00 M dollars. When comparing 2018 vs 2017, nonetheless, profit margin (that is, the net income divided by revenues) skyrocketed a 18.33% to 12.77%.

Avaya presents anual results in September, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Avaya TTM sales up to December 2018 were $2,837.00 and earnings $59.00 M dollars. When comparing this TTM figures with the last reported annuality, we can esteem Avaya business evolution since September 2018: Annual revenues up to December, compared to lastest yearly report, boosted an outstanding 26.26%. In contrast, profit margin (net income/revenues) plummed at 12.77%.

AVYA annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$4,580 M-$-319.00 M-7.0%-
2014$4,371 M-4.56%$-253.00 M-5.8%-20.69%
2015$4,081 M-6.63%$-168.00 M-4.1%-33.60%
2016$3,702 M-9.29%$-730.00 M-19.7%334.52%
2017$3,272 M-11.62%$-182.00 M-5.6%-75.07%
2018$2,247 M-31.33%$287 M12.8%-257.69%
TTM $2,837 M26.26%$59 M2.1%-79.44%

Quarterly financial results

Avaya reported $738.00 M in revenues for 2018-Q4, a 0.41% improvement compared to previous quarter. Reported quarter income marked $9.00 M with a profit margin of 1.22%. Profit margin plummed a -35.24% compared to previous quarter when profit margin was 36.46%. When comparing revenues to same quarter last year, Avaya sales marked an amazing gain and rocketed a 22.19%. Looking back to recent quarterly results, Avaya posted 4 negative quarters in a row.
AVYA quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$804 M-$-8 M-1.0%-
2017-Q2$803 M-0.12%$-98 M-12.2%1,125.00%
2017-Q3$790 M-1.62%$27 M3.4%-127.55%
2017-Q4$604 M-23.54%$2,977 M492.9%10,925.93%
2018-Q1$672 M11.26%$-130 M-19.3%-104.37%
2018-Q2$692 M2.98%$-88 M-12.7%-32.31%
2018-Q3$735 M6.21%$268 M36.5%-404.55%
2018-Q4$738 M0.41%$9 M1.2%-96.64%

Avaya ownership

When you are planning to invest in a stock, it's worth to check its ownership structure.

Avaya shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.97% of all shares.

Bearish positions for AVYA stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Avaya:

AVYA
Market cap$1.6 B
Total shares110.9 M
Float shares93.4 M
  - Institutional holdings (%)103.5%
  - Insider holdings (%)1.0%
Shares in short selling0.0%

Avaya summary

Thursday, August 22nd, 2019
Open$14.23
Close$14.08
Day range$13.72 - $14.23
Previous close$14.14
Session gain-0.42%
Average true range$0.92
50d mov avg$11.62
100d mov avg$13.83
200d mov avg$14.80
Daily pattern
Weekly pattern lb06c

Avaya performance

To better understand Avaya performance you must compare its gains with other related stocks in same sector or industry. For Avaya, the benchmark is made against .
Stock3m6m12m
AVYAAvaya9.15%-12.60%-38.65%

Avaya competitors

Unfortunately, we could not find any public company that could be defined as Avaya competitor. This doesn't mean Avaya does not have any competitor in the market, it's just we could not detected it.