Is Buying Stock Like Civitas Solutions, Inc. (CIVI) After This Wedge Up a Winning Strategy?

December 7, 2017 - By Migdalia James

The stock of Civitas Solutions, Inc. (CIVI) formed an up wedge with $20.44 target or 9.00 % above today’s $18.75 share price. The 9 months wedge indicates low risk for the $700.55 million company. If the $20.44 price target is reached, the company will be worth $63.05 million more.
Rising wedges, especially for downward breakouts are tricky moments to trade. Investors must be aware that the break even failure rate for up or down breakouts is: 8% and 24%. The average rise is 28% and the decline is 14%. Wedges has high throwback and pullback rate: 73%, 63% and the percent of wedges meeting target is not more than 50%.

The stock decreased 1.06% or $0.2 during the last trading session, reaching $18.75. About 41,459 shares traded or 11.97% up from the average. Civitas Solutions, Inc. (NYSE:CIVI) has declined 21.64% since December 8, 2016 and is downtrending. It has underperformed by 38.34% the S&P500.

Analysts await Civitas Solutions, Inc. (NYSE:CIVI) to report earnings on December, 13. They expect $0.22 earnings per share, down 18.52 % or $0.05 from last year’s $0.27 per share. CIVI’s profit will be $8.22 million for 21.31 P/E if the $0.22 EPS becomes a reality. After $0.20 actual earnings per share reported by Civitas Solutions, Inc. for the previous quarter, Wall Street now forecasts 10.00 % EPS growth.

Civitas Solutions, Inc. (NYSE:CIVI) Ratings Coverage

Among 5 analysts covering Civitas Solutions (NYSE:CIVI), 4 have Buy rating, 0 Sell and 1 Hold. Therefore 80% are positive. Civitas Solutions had 13 analyst reports since August 13, 2015 according to SRatingsIntel. Canaccord Genuity maintained Civitas Solutions, Inc. (NYSE:CIVI) rating on Friday, October 27. Canaccord Genuity has “Buy” rating and $27 target. The rating was initiated by Canaccord Genuity with “Buy” on Wednesday, September 16. The rating was downgraded by Raymond James to “Outperform” on Thursday, November 19. The rating was downgraded by Raymond James to “Market Perform” on Thursday, August 11. The firm has “Overweight” rating given on Wednesday, January 6 by Barclays Capital. The stock of Civitas Solutions, Inc. (NYSE:CIVI) earned “Buy” rating by Canaccord Genuity on Wednesday, June 14. Canaccord Genuity maintained the shares of CIVI in report on Friday, October 13 with “Buy” rating.

More notable recent Civitas Solutions, Inc. (NYSE:CIVI) news were published by: Businesswire.com which released: “Annual Piper Jaffray Healthcare Conference” on November 22, 2017, also Businesswire.com with their article: “Civitas Solutions, Inc. Announces Schedule for Release of 2017 Fourth Quarter …” published on December 04, 2017, Businesswire.com published: “Civitas Solutions Expands Adult Day Health (ADH) Platform to the State of New …” on June 13, 2017. More interesting news about Civitas Solutions, Inc. (NYSE:CIVI) were released by: Businesswire.com and their article: “Civitas Solutions, Inc. to Present at Two Upcoming Investor Conferences” published on March 06, 2017 as well as Seekingalpha.com‘s news article titled: “Civitas Solutions’ (CIVI) CEO Bruce Nardella on Q2 2017 Results – Earnings …” with publication date: May 11, 2017.

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