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Nielsen (NLSN, $22.20) to be acquired for $16 bn by PE investors
TV ratings group Nielsen Holdings shares climbed on Tuesday, after a consortium of buyers lead by activist investors Elliott Investment Management agreed to buy the company for $16 billion.
Private equity buyers, including Brookfield Asset Management and Elliott affiliate Evergreen Coast Capital Corporation will pay $28 a share for Nielsen – which, alongwith the group's debts, would lead to an enterprise value of $16 billion.
The Nielsen Board of Directors voted unanimously to support the acquisition proposal, which represents a 10% premium over the Consortium's previous proposal and a 60% premium over Nielsen's unaffected stock price as of March 11, 2022, the last trading day before market speculation on a potential deal.
"Nielsen is deeply embedded in the media ecosystem and a trusted service provider to its customers. As a private company, Nielsen will be even better positioned to deliver the best measures of consumers' rapidly changing behaviors across all channels and platforms," said Brookfield Business Partners' David Gregory. "We are pleased to invest in this iconic company and help lead the industry into the next generation of audience measurement."
Momentum Indicator for NLSN turns negative, indicating new downward trend
NLSN saw its Momentum Indicator move below the 0 level on April 18, 2022. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 90 similar instances where the indicator turned negative. In 62 of the 90 cases, the stock moved further down in the following days. The odds of a decline are at 69%.
Current price $25.19 is above $17.98 the highest resistance line found by A.I. Throughout the month of 04/12/22 - 05/13/22, the price experienced a -8% Downtrend. During the week of 05/06/22 - 05/13/22, the stock fell -6%.
The Moving Average Convergence Divergence Histogram (MACD) for NLSN turned negative on April 13, 2022. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In 31 of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at 65%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NLSN declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 61%.
The Aroon Indicator for NLSN entered a downward trend on May 13, 2022. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Indicator entered the oversold zone -- be on the watch for NLSN's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Indicator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The 50-day Moving Average for NLSN moved above the 200-day moving average on April 12, 2022. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a +2.01% 3-day Advance, the price is estimated to grow further. Considering data from situations where NLSN advanced for three days, in 174 of 293 cases, the price rose further within the following month. The odds of a continued upward trend are 59%.
NLSN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 74%. During the last month, the daily ratio of advancing to declining volumes was 1 to 2.18.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. NLSN’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock worse than average.
The Tickeron PE Growth Rating for this company is 98 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 40 (best 1 - 100 worst), indicating steady price growth. NLSN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 34 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 28 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 24 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.655) is normal, around the industry mean (14.104). P/E Ratio (16.529) is within average values for comparable stocks, (61.759). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.900). Dividend Yield (0.009) settles around the average of (0.032) among similar stocks. P/S Ratio (2.579) is also within normal values, averaging (39.926).
The sector produces general business services, and are not classified elsewhere. For example, FleetCor Technologies provides fuel cards and workforce payment products and services; Copart, Inc. provides online vehicle auction and remarketing services across various nations; Equifax Inc. collects and aggregates credit information on consumers and businesses worldwide, along with selling credit monitoring and fraud-prevention services. Many of the companies in this category have multi-billion market capitalizations.
The average market capitalization across the Miscellaneous Commercial Services Industry is 2.7B. The market cap for tickers in the group ranges from 788 to 45.9B. TRI holds the highest valuation in this group at 45.9B. The lowest valued company is EVSV at 788.
The average weekly price growth across all stocks in the Miscellaneous Commercial Services Industry was -2.2%. For the same Industry, the average monthly price growth was -2.59%, and the average quarterly price growth was -14.71%. FLCX experienced the highest price growth at 178.62%, while QOEG experienced the biggest fall at -67.74%.
The average weekly volume growth across all stocks in the Miscellaneous Commercial Services Industry was -5.3%. For the same stocks of the Industry, the average monthly volume growth was -97.96% and the average quarterly volume growth was -97.49%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the Aroon Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 38%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.75.
95 stocks in the group of tickers exhibit a similar negative trend based on the TrendWeek indicator with an average likelihood of 73%.
The most notable companies in this group are TAL Education Group (NYSE:TAL), 2U (NASDAQ:TWOU).
The average market capitalization across the group is 2.7B. The market cap for tickers in the group ranges from 0 to 45.8B. TRI holds the highest valuation in this group at 45.8B. The lowest valued company is CGRW at 0.
The average weekly price growth across all stocks in the group was -2.92%. For the same group, the average monthly price growth was -1.66%, and the average quarterly price growth was -24.15%. FLCX experienced the highest price growth at 178.62%, while QOEG experienced the biggest fall at -67.74%.
The average weekly volume growth across all stocks in the group was 128.72%. For the same stocks of the group, the average monthly volume growth was 717.34% and the average quarterly volume growth was 188.52%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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