Orbital ATK, Inc. (NYSE:OA) Overbought but Is That a Sell Indicator?

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Orbital ATK, Inc. (NYSE:OA) has reached overbought status with an RSI(14) at 86.87 .

The Relative Strength Index (RSI) is a very common technical indicator used to determine strengthening and weakening momentum in stock movements. An RSI above 70 is an overbought indication while an RSI of under 30 is considered oversold. Overbought is a condition that occurs when price momentum is considered too high and susceptible to a decline.

Volatility

Orbital ATK, Inc.’s stock has a beta of 0.27 meaning it is lower in volatility than the overall market which definitionaly has a beta of 1. Stocks with a beta lower than the market are considered to be less risky than the market and those with a higher beta are more risky than the market over the long haul.

The stock’s Average True Range (ATR) is currently 3.00. The ATR is an indicator of volatility. It doesn’t indicate direction, just proclivity for motion.

Company shares last traded at $132.40 which is quite a bit higher than $108.83, the stock’s 50 day moving average and well above the 200 day moving average of $101.75. The 50 day moving average was up $23.57 or +21.66% and the 200 day average went up $30.65 or +30.13%.

Recent news headlines for (NYSE:OA).

Orbital (OA) Alert: Johnson Fistel Investigates Proposed Sale of Orbital ATK, Inc.; Is $134.50 a Fair Price?
Harwood Feffer LLP Announces Investigation of Orbital ATK, Inc.
WEISSLAW LLP: Orbital ATK Inc Acquisition May Not Be in the Best Interests of OA Shareholders.

Short Interest

Investors are more bearish on the company recently if you pay attention to the motion in short interest. The firm recorded a rise in short interest of 5.44% between August 15, 2017 and August 31, 2017. Short shares increased from 488,878 to 515,495 over that period. With short interest at 515,495 and short average daily volume at 191,188, days to cover is 3.0 and the percentage of shorted shares was 0.01% on August 31.

Insider Activity

There has been some selling insider activity on Orbital ATK, Inc. (NYSE:OA) recently. Frank L. Jr. Culbertson, EVP sold $20,382 worth of shares at an average price of $101.91 on July 17th. Culbertson now owns $2,448,592 of stock as recorded in a recent Form 4 SEC filing.

Recent Analyst Ratings

On September 19, 2017 the stock rating was set at “Hold” by Argus down from the previous “” rating. On September 19 the stock rating was downgraded from “” to “Hold” in a statement from SunTrust Robinson Humphrey.

Additionally the company recently declared a dividend paid on Thursday June 22nd, 2017. The dividend was $0.320 per share for the quarter which comes to $1.28 on an annualized basis. The dividend yield was $1.16. The ex-dividend date was set for Friday the 1st of September 2017.

The P/E ratio is currently 27.56 and market cap is 7.63B. As of the last earnings report the EPS was $4.80 and is expected to be $6.17 for the current year with 57,607,000 shares outstanding. Next quarter’s EPS is forecasted at $1.83 with next year’s EPS anticipated to be $6.70.

Company Information

Orbital ATK, Inc., launched on May 2, 1990, is an aerospace and defense systems company and supplier of related products to the United States Government, allied nations, prime contractors and other customers. The Business’s segments include Flight Systems Group, Defense Systems Group, Space Systems Group and Corporate. The Business’s products include launch vehicles and related propulsion systems; satellites and associated components and services; composite aerospace structures; tactical missiles, subsystems and defense electronics, and precision weapons, armament systems and ammunition..