S&P Global Inc. (SPGI) Next Support Is Here

S&P Global Inc. (NYSE:SPGI) reached $43.6B by 06-December-18 in the wake of -2.33% downturn. The shares gained some momentum after bears carried it down to $170.85. The final price for the day of 173.49 was still down from $175.64. The stock remained range bound between $170.85 and $175.64. Trading activity significantly improved as the volume at ready counter increased to 3,650,647 shares versus 1,714,225 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,310,283 shares. The stock is now 5.15% above against its bear-market low of $164.99 on February 05, 2018. It has retreated -25.26% since it’s 52-week high of $217.31 reached in July. Now the market price is up 3.34% on the year and up 2.41% YTD.

SPGI’s 50 day simple moving average (SMA 50) price is $184.39 and its 200-day simple moving average (SMA 200) price is $196.2. The company’s stock currently has a total float of 250.14M shares. Its weekly volatility is hovering around 2.44% and felt 2.18% volatility in price over a month. On the upside, the share price will test short term resistance at around $175.8. On a downside, the stock is likely to find some support, which begins at $171.01. The failure to get near-term support could push it to $168.54.

Separately, it has been reported that multiple insider activity took place at S&P Global Inc. (SPGI). SVP, Chief Risk & Audit Exec Luquette Nancy sold 225 shares for $306 in transaction occurred on 2018/11/05. After making this transaction, the SVP, Chief Risk & Audit Exec owns a direct stake of 41,290 shares, worth $53,088, as per the last closing price. On 2018/08/22 Luquette Nancy, SVP, Chief Risk & Audit Exec at SPGI, dumped 350 shares at an average price of $203.35 per share. The selling total is valued at $92,123.

CEO & President, Peterson Douglas L. had divested 4,000 shares for $167,190 through a trade on 2018/08/15. Following this activity, the insider holds 805,080 shares worth $29,005,793 as of recent close. Wall Street’s most bullish S&P Global Inc. (NYSE:SPGI) analysts are predicting the share price to blow past $235 per share during the next 12 months. The current median share price forecast by them is $209.5, suggesting that the stock could increase 20.76% in that time frame. The average price target of $205.57 calls for a nearly 18.49% increase in the stock price.

It had seen a new analyst call from Goldman, which initiated the stock at Buy on November 14. Analysts at Atlantic Equities, shed their positive views on August 01 by lowering it fromOverweight to Neutral. Brokerage firm Piper Jaffray, looks cautious as they stick to prior recommendation of Overweight, in a call on February 13. However, they did change the target price from $224 to $229. Susquehanna analysts came out with bearish views on February 07 when the call was made. They think the stock is now Neutral compared to to their prior call for Positive.

When looking at valuations, S&P Global Inc. (SPGI) has a cheap P/E of 23.76x as compared to industry average of 46.82x. Moreover, it trades for 18.61 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 48.19x price/book and 6.91x price/sales. Compared to others, S&P Global Inc. is in a different league with regards to profitability, having net margins of 27.1%. To put some perspective around this, the industry’s average net margin is 9.63%. SPGI’s ROE is 309.9%, which is also considerably better than the industry’s ROE of 44.97%. It’s also very liquid in the near term, with a current ratio of 1.4. The stock has a debt/capital of 4.05.

Shares of S&P Global Inc. (SPGI) have dropped -0.1% since the company’s last earnings report. Over the past 12 fiscal quarters, S&P Global Inc. (NYSE:SPGI) has topped consensus earnings estimates in 12 quarters (100%), missed earnings in 0 quarters (0%), whereas at 0 occasion EPS met analyst expectations. SPGI last reported earnings on October 25, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $2.11 per share, -39.37% change on the same period last year. That was better than consensus for $2.04. Revenue for the recent quarter stood at $1.55 billion, up 2% on last year and below the $1.59 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.59 billion to $1.69 billion, which should be compared with $1.59 billion generated last year. EPS is seen in a range of $2.21 to $2.39, against the $1.81 reported a year ago.