Fact Check: What’s wrong with Tradeweb Markets Inc. (TW) today

The biggest losers of the session on the Wall Street include Tradeweb Markets Inc. (NASDAQ:TW), which fell -1.9 points or -3.85% to trade at $47.43 as last check. The stock closed last session at $49.33 and sets an active trading volume day with a reported 316133 contracts so far this session. TW shares had a relatively better volume day versus average trading capacity of 700.09 thousand shares, but with a 44.85 million float and a 8.42% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for TW stock indicates that the average analyst price target is $43.21 per share. This means the stock has a potential decrease of -8.9% from where the TW share price has been trading recently which is between $47.54 and $49.98. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $41.

The shorts are climbing into Tradeweb Markets Inc. (TW) stock. The latest set of short interest data was released on 28 June 2019, and the numbers show a rise in short interest in TW shares. While short interest still represents only 2.04% of TW’s float, the number of shares shorted have risen by 550247. The number of shares shorted advanced to 1050240 shares, up from 499993 shares during the preceding fortnight. With average daily trading volumes at 751020 shares, days to cover increased to about 1.265709 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Need To Know: Tradeweb Markets Inc. (NASDAQ:TW) Insiders Have Been Buying Shares” and dated July 11, 2019.

Looking at the current readings for Tradeweb Markets Inc., the two-week RSI stands at 63.19. This figure suggests that TW 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 TW readings is similarly very revealing as it has a stochastic reading of 88.75% at this stage. This figure means that TW share price today is being oversold.

Technical chart claims that Tradeweb Markets Inc. (TW) would settle between $50.36/share to $51.39/share level. However, if the stock price goes below the $47.92 mark, then the market for Tradeweb Markets Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $46.51 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 1.84. 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 Raymond James, assumed coverage of TW assigning Mkt Perform rating, according to their opinion released on June 18. Wells Fargo, analysts launched coverage of Tradeweb Markets Inc. (NASDAQ:TW) stock with a Market Perform recommendation, according to their flash note issued to investors on April 29. Analysts at Sandler O’Neill, made their first call for the equity with a Hold recommendation, according to a research note that dated back to April 29.

TW equity has an average rating of 2.88, with the figure leaning towards a bullish end. 16 analysts who tracked the company were contacted by Reuters. Amongst them, 14 rated the stock as a hold while the remaining 2 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. 2 analysts rated Tradeweb Markets Inc. (NASDAQ:TW) 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, TW stock price is currently trading at 46.89X forward 12-month Consensus EPS estimates, and its P/S ratio is 15.53 while for the average stock in the same group, the multiple is 9.61. Tradeweb Markets Inc. current P/E ratio of 68.07 means it is trading at a premium against its industry’s 29.79. In the past 5 years, this ratio for the stock has been fluctuating between 0 and 0.