MDC Partners Inc. (NASDAQ:MDCA) surges on earnings announcement

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Shares of MDC Partners Inc. (NASDAQ:MDCA) are currently up by more than 9.39% from the open today and are trading at $9.02. More than 633,260 shares have exchanged hands compared to an average trading volume of 588.63K. At the current pps, the market cap stands at $357.01M. The stock prices of MDC Partners Inc. (NASDAQ:MDCA) are currently trading at -61.16% below its 52 week high and 228.18% above its 52 week low.

MDC Partners Inc. (NASDAQ:MDCA) has been in the news for all the right reasons. Recently, MDC Partners Inc. (NASDAQ:MDCA) announced that it has entered into a definitive agreement with an affiliate of the Merchant Banking Division of Goldman Sachs (“Goldman Sachs”) pursuant to which Goldman Sachs has agreed to invest $95 million in MDC Partners through the purchase of non-voting convertible preference shares (the “Preference Shares”). In connection with the closing of the transaction, Bradley J. Gross, a managing director in the Merchant Banking Division of Goldman Sachs, will join the MDC Partners Board of Directors, which will expand to seven members. Subject to the satisfaction of certain conditions, the transaction is expected to close in the first quarter of 2017.

MDC Partners Inc. (NASDAQ:MDCA) is all set to announce its earnings on Feb 23/a. As per Zack’s analyst ratings, MDC Partners Inc. (NASDAQ:MDCA) currently has an average brokerage rating of 2.25. On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NASDAQ:MDCA) is $10.166 with a high of $18 and a low of $4.

Let’s take a look at the technical analysis.

The Barchart Technical Opinion rating is a 72% Buy with a Strongest short term outlook on maintaining the current direction. Longer term, the trend strength is Strong. Long term indicators mostly agree with the trend.

The The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oid prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). The 5 day EMA 6.80 is lower than the last trade price suggesting a short term bullishh pattern building up. Long term, the 50 day EMA 6.85 is also higher than then current trading price depicting a bullish trend overall.

The relative strength index (RSI) is a momentum osciallator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 51.31 suggesting a bullish price action.

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Sara Wilson

Sara Wilson

We have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. No compensation.