During the recent trading sessions stock of Investors Bancorp, Inc. (NASDAQ:ISBC) was gathering the crowd in the stock market. Many analysts use price trends and patterns to predict future performance, and we can glean some important insights about ISBC by examining the chart.
How has the stock performed recently?
Investors Bancorp, Inc. (NASDAQ:ISBC) in the last month has increased +1.09%. Shares are now up over the past year, outperforming the broad market by -100% and underperformed a peer group of similar companies by -89%. After the latest session, which saw the stock close at a price of $13.91, ISBC sits below its 52-week high. Investors Bancorp, Inc. (NASDAQ:ISBC) has been trading in a bearish manner, based on the relative positions of the stock’s 20 and 200 day moving averages.
Of course, these surface-level price movements don’t tell us much about the direction that ISBC may be headed in the future. To forecast a stock’s future performance, analysts use momentum indicators, which take into account the size and speed of these price movements. As momentum begins to slow, it may be a sign that a recent trend is about to reverse. Two such indicators are the RSI (Relative Strength Index) and the Stochastic %k Oscillator, which fluctuate on a scale of 0 to 100. A reading above 70 indicates that a stock is overvalued, and a reading below 30 implies that it is undervalued. The 20-day RSI for ISBC is 57.54%, which suggests that the stock is not particularly expensive or cheap, and not predisposed to a reactive price movement based on this measure. The 20-day Stochastic %k measure, which sits at 51.30%, tells a similar story, and suggests that ISBC currently trades in neutral territory.
What do the trading volumes reveal?
Volume patterns are useful for gauging the level of conviction behind price changes, and can be used to make predictions about future price movements. A sudden increase in a stock’s activity can be a sign that investors are trading in anticipation of a catalyst, or that investors feel very strongly in one way or the other about the future direction of a stock. Investors Bancorp, Inc. (ISBC) average trading volume of 2,653,820 during the past month is 3.49% above its average volume over the past year, indicating that investors have been more active than usual in the stock in recent times.
What do the analysts think?
ISBC is currently undervalued by -5.25% relative to the average 1-year price target of $14.68 taken from a group of Wall Street Analysts. The average investment recommendation on a scale of 1 to 5 (1 being a strong buy, 3 a hold, and 5 a sell) is 2.60, which implies that analysts are generally neutral in their outlook for ISBC over the next year.
How risky is the stock?
No study on the valuation of a stock is complete without taking into account risk. When analyzing the systematic risk associated with a stock, analysts look at beta, which measures the stock’s volatility relative to the overall market.
Investors Bancorp, Inc. (NASDAQ:ISBC) has a beta of 0.68, compared to a beta of 1 for the market, which implies that the stock’s price movements are less extreme than the market as a whole. ISBC therefore has a below average level of market risk. During the past couple of weeks, ISBC average daily volatility was 20.25%, which is -2.83 percentage points higher than the average volatility over the past 100 days.