Could IAC/InterActiveCorp. (NASDAQ:IAC) nosedive?

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IAC/InterActiveCorp IAC was a big mover last session, as its shares rose over 14% on the day. The move came after the company that the company has entered into a definitive agreement to combine its HomeAdvisor business with Indianapolis-based Angie’s List in a stock-for-stock and/or cash-for-stock transaction. This also led to far more shares changing hands than in a normal session. This continues the recent uptrend for the company as the stock is now up over 30% in the past one-month time frame.

Shares of IAC/InterActiveCorp (NASDAQ:IAC) last traded at $101.99. The company’s performance year to date is 57.42%. The 200 day simple moving average is 49.05%. The 200 simple moving average (SMA) is considered a key indicator by traders and market analysts for determining the overall long-term trend. The price level in a market that coincides with the 200 SMA is recognized as a major support when price is above the 200 SMA or resistance when price is below the 200 SMA level.

As per recent filings, IAC/InterActiveCorp (NASDAQ:IAC) has an insider ownership of 0.50%.

IAC is a leading media and Internet company. It is organized into four segments: The Match Group, which consists of dating, education and fitness businesses with brands such as Match.com, OkCupid, Tinder, The Princeton Review and DailyBurn; Search & Applications, which includes brands such as About.com, Ask.com, Dictionary.com and Investopedia; Media, which consists of businesses such as Vimeo, Electus, The Daily Beast and CollegeHumor; and eCommerce, which includes HomeAdvisor and ShoeBuy. IAC’s brands and products are among the most recognized in the world reaching users in over 200 countries. The Company is headquartered in New York City and has offices worldwide.

IAC/InterActiveCorp (NASDAQ:IAC) has been storming Wallstreet with solid press release. Recently, the company announced that according to the March 2017 study commissioned by RetailMeNot and conducted by Forrester Consulting, the company’s mobile marketing solutions generate a three-year, risk-adjusted return on investment (ROI) of 4.3x.

The Barchart Technical Opinion rating is a 96% Buy with a Strengthening short term outlook on maintaining the current direction. Longer term, the trend strength is Maximum. Long term indicators fully support a continuation of the trend. The market is in highly overbought territory. Beware of a trend reversal.

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 oil 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 long term and short term EMA’s of 98.66 and 80.65 are lower than the current trading price suggesting a bullish pattern in both short term as well as long term. .

The relative strength index (RSI) is a momentum oscillator 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 95.19 suggesting a bullish price action.

IAC/InterActiveCorp (NASDAQ:IAC) is all set to announce its earnings on May 03/a. As per Zack’s analyst ratings, IAC/InterActiveCorp (NASDAQ:IAC) currently has an average brokerage rating of 1.15. 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:IAC) is $101.714 with a high of $135 and a low of $70.

As such, while we believe IAC/InterActiveCorp (NASDAQ:IAC) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.

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