What Next for Houghton Mifflin Harcourt Company (HMHC) After Forming Wedge Down?

April 25, 2018 - By Richard Conner

Houghton Mifflin Harcourt Company (NASDAQ:HMHC) Logo

Investors sentiment increased to 1.77 in 2017 Q4. Its up 0.42, from 1.35 in 2017Q3. It improved, as 13 investors sold Houghton Mifflin Harcourt Company shares while 31 reduced holdings. 34 funds opened positions while 44 raised stakes. 120.03 million shares or 2.66% less from 123.31 million shares in 2017Q3 were reported.
Virtu invested in 0.02% or 43,221 shares. Adirondack Research And Mngmt invested in 332,638 shares or 1.21% of the stock. Moreover, Gmt Cap has 0.13% invested in Houghton Mifflin Harcourt Company (NASDAQ:HMHC) for 704,900 shares. Citadel Advsrs Limited Liability Co has invested 0% in Houghton Mifflin Harcourt Company (NASDAQ:HMHC). Greywolf Cap Lp has invested 4.15% in Houghton Mifflin Harcourt Company (NASDAQ:HMHC). State Common Retirement Fund holds 0.01% or 1.15 million shares. 63,000 were reported by Hutchin Hill Cap Lp. 70,800 are held by Ellington Gru Ltd Limited Liability Company. First Pacific Limited Liability reported 2.85M shares. Deutsche Bankshares Ag owns 710,499 shares for 0% of their portfolio. American Intl Gp holds 0% of its portfolio in Houghton Mifflin Harcourt Company (NASDAQ:HMHC) for 69,686 shares. Teacher Retirement System Of Texas invested in 35,836 shares or 0% of the stock. Trexquant Limited Partnership has 0.06% invested in Houghton Mifflin Harcourt Company (NASDAQ:HMHC) for 56,037 shares. The Massachusetts-based Rhumbline Advisers has invested 0% in Houghton Mifflin Harcourt Company (NASDAQ:HMHC). Japan-based Nomura Inc has invested 0% in Houghton Mifflin Harcourt Company (NASDAQ:HMHC).

The stock of Houghton Mifflin Harcourt Company (HMHC) formed a down wedge with $6.86 target or 6.00 % below today’s $7.30 share price. The 9 months wedge indicates high risk for the $900.80 million company. If the $6.86 price target is reached, the company will be worth $54.05M less.
Falling wedges are poor performers for bullish breakouts and are tricky moments to trade. Investors must be aware that the break even failure rate for up or down breakouts is: 11% and 15%. The average rise is 32% and the decline is 15%. The falling wedges has high throwback and pullback rate: 56%, 69% and the percent of wedges meeting target is not very high.

The stock decreased 2.67% or $0.2 during the last trading session, reaching $7.3. About 279,953 shares traded. Houghton Mifflin Harcourt Company (NASDAQ:HMHC) has declined 25.40% since April 25, 2017 and is downtrending. It has underperformed by 36.95% the S&P500.

Analysts await Houghton Mifflin Harcourt Company (NASDAQ:HMHC) to report earnings on May, 3 before the open. They expect $-0.79 EPS, up 17.71 % or $0.17 from last year’s $-0.96 per share. After $-0.70 actual EPS reported by Houghton Mifflin Harcourt Company for the previous quarter, Wall Street now forecasts 12.86 % negative EPS growth.

Houghton Mifflin Harcourt Company (NASDAQ:HMHC) Ratings Coverage

Among 5 analysts covering Houghton Mifflin (NASDAQ:HMHC), 1 have Buy rating, 1 Sell and 3 Hold. Therefore 20% are positive. Houghton Mifflin had 7 analyst reports since November 2, 2017 according to SRatingsIntel. Piper Jaffray maintained it with “Hold” rating and $12.0 target in Thursday, February 22 report. BMO Capital Markets maintained it with “Market Perform” rating and $8 target in Friday, February 23 report. Goldman Sachs initiated Houghton Mifflin Harcourt Company (NASDAQ:HMHC) rating on Tuesday, March 27. Goldman Sachs has “Sell” rating and $6.5000 target. Stifel Nicolaus maintained Houghton Mifflin Harcourt Company (NASDAQ:HMHC) on Thursday, November 2 with “Hold” rating. The rating was maintained by Citigroup with “Buy” on Friday, November 3. The firm has “Hold” rating given on Wednesday, April 11 by Piper Jaffray. Stifel Nicolaus maintained Houghton Mifflin Harcourt Company (NASDAQ:HMHC) on Friday, February 23 with “Hold” rating.

Houghton Mifflin Harcourt Company (NASDAQ:HMHC) Institutional Positions Chart

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