Is Harris Corporation (NYSE:HRS) Overbought?

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Harris Corporation (NYSE:HRS) is at overbought status with an RSI(14) at 87.31 .

The Relative Strength Index (RSI) is one of the most popular technical indicators used to ascertain strengthening and weakening momentum in price action. An RSI above 70 is considered overbought with RSI’s under 30 indicating oversold. Overbought is a condition that occurs when prices are considered too high and may be susceptible to a decline.

Volatility

(NYSE:HRS) currently has a beta of 1.15 indicating it is higher in volatility than the market overall which by definition has a beta of 1. Stocks with beta’s lower than 1 are less risky while those with a higher beta are more risky than the market over the long haul.

The stock’s Average True Range (ATR) is sitting at 1.48. The ATR is an indicator of volatility. It doesn’t indicate the likely direction of the stock price, just the likelihood that the stock will move.

Shares last traded at $131.56 marginally over $120.91, the 50 day moving average and significantly higher than the 200 day moving average of $113.51. The 50 day moving average was up $10.65 or +8.80% and the 200 day average was up $18.05.

Short Interest

Short traders are feeling a little more bullish on Harris Corporation of late if you take a look at the motion in short interest. The stock realized a fall in short interest of -17.69% as of the latest report on August 31, 2017. Short shares decreased from 1,705,788 to 1,404,011 over that timeframe. The short-interest ratio decreased to 2.0 and the percentage of shorted shares is 0.01% as of August 31.

Insider Activity

Harris Corporation (NYSE:HRS) has been the object of insider selling activity recently. Scott T. Mikuen, Sr VP-General Counsel & Secy sold $1,677,696 worth of shares at an average price of $123.36 on September 12th. That brings the Sr VP-General Counsel & Secy’s holdings to $5,890,262 as reported to the SEC. Scott T. Mikuen, Sr VP-General Counsel & Secy disclosed the sale of 4,387 shares of HRS stock. The shares were sold on September 8th for an average price of $121.70. The Sr VP-General Counsel & Secy now owns $5,811,000 of the stock per the Form 4 SEC filing.

Recent Analyst Ratings

Credit Suisse began coverage of HRS with a rating of “Outperform”.

The company also recently declared a dividend for shareholders payable on Friday the 22nd of September 2017. The dividend payment will be $0.570 per share for the quarter which comes to $2.28 on an annualized basis. This dividend amount will represent a yield of $1.80. The ex-dividend date will be on Thursday the 7th of September 2017.

Harris Corporation’s P/E ratio is 29.66 and market cap is 15.76B. As of the latest earnings report the EPS was $4.44 and is projected to be $6.01 for the current year with 119,762,000 shares presently outstanding. Next quarter’s EPS is estimated at $1.40 with next year’s EPS anticipated to be $6.85.

Company Information

Harris Corporation, launched on December 6, 1926, is a technology company that provides products, systems and services that have defense and civil government applications, as well as commercial applications. The Company offers its products and services to government and commercial customer. The Company operates in four segments: Communication Systems, which serves markets in tactical communications and defense, and public safety networks; Space and Intelligence Systems, which provides complete Earth observation, environmental, geospatial, space protection, and intelligence solutions from advanced sensors and payloads, as well as ground processing and information analytics; Electronic Systems, which offers a portfolio of solutions in electronic warfare, avionics, wireless technology, command, control, communications, computers and intelligence (C4I) and undersea systems, and Critical Networks, which provides managed services supporting air traffic management, energy and maritime communications, and ground network operation and sustainment, as well as information technology (IT) and engineering services..