Big changes are happening at SVB Financial Group (NASDAQ:SIVB), which makes the stock worth watching today. The company is among the top gainers of the stock market today, skyrocketing 5.58% or (10.74 points) to $203.18 from its previous close of $192.44. Does this growth mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 210522 contracts so far this session. SIVB shares had a relatively better volume day versus average trading capacity of 530.63 thousand shares, but with a 51.32 million float and a -1.6% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for SIVB stock indicates that the average analyst price target is $254.21 per share. This means the stock has a potential increase of 25.12% from where the SIVB share price has been trading recently which is between $190.828 and $196.05. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $210. Flipping the other side of the coin, an analyst who is fully bullish set a price target as high as $300.
During the recent trading session for SVB Financial Group (NASDAQ:SIVB), the company witnessed their stock rise $3.55 over a week and tumble down $-22.79 from the price 20 days ago. When compared to their established 52-week high of $303.55, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 12/10/18. The recent low of $177.7 stood for a -33.07% since 12/24/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 2.18 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to. At the moment, the median target price for SIVB is set at $250, a figure which is below the recent 1-year high the stock witnessed.
Looking at the current readings for SVB Financial Group, the two-week RSI stands at 51.65. This figure suggests that SIVB stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current SIVB readings is similarly very revealing as it has a stochastic reading of 23.45% at this stage. This figure means that SIVB share price today is being overbought.
Technical chart claims that SVB Financial Group (SIVB) would settle between $195.38/share to $198.33/share level. However, if the stock price goes below the $190.16 mark, then the market for SVB Financial Group becomes much weaker. If that happens, the stock price might even plunge as low as $187.88 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.51. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at Maxim Group lifted target price for shares of SIVB but were stick to Buy recommendation for the stock in their opinion released on July 29. The price target has been raised from $325 to $300. Raymond James analysts have lowered their rating of SVB Financial Group (NASDAQ:SIVB) stock from Strong Buy to Mkt Perform in a separate flash note issued to investors on July 08. Analysts at Keefe Bruyette lowered the stock to a Mkt Perform call from its previous Outperform recommendation, in a research note that dated back to July 08.
SIVB equity has an average rating of 2.21, with the figure leaning towards a bullish end. 19 analysts who tracked the company were contacted by Reuters. Amongst them, 7 rated the stock as a hold while the remaining 12 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 12 analysts rated SVB Financial Group (NASDAQ:SIVB) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, SIVB stock price is currently trading at 9.78X forward 12-month Consensus EPS estimates, and its P/E ratio is 8.9 while for the average stock in the same group, the multiple is 11.7. SVB Financial Group current P/B ratio of 1.8 means it is trading at a premium against its industry’s 1.3.