Ocwen Financial Corporation is a financial services holding company engaged in asset acquisition and resolution, residential finance, commercial finance, investment management and hotel operations. The Company primarily specializes in the aquisition and resolution of non-performing or underperforming loans.
Ocwen Financial Corporation (NYSE:OCN) has been in the news for all the right reasons. Recently, Ocwen Financial Corporation (NYSE:OCN) announced that
The Barchart Technical Opinion rating is a 88% Sell with a Weakening short term outlook on maintaining the current direction. Longer term, the trend strength is Strong. Long term indicators fully support a continuation of the trend. The market is approaching oversold territory. Be watchful 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 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 2.47 is higher than the last trade price suggesting a short term bearish pattern building up. Long term, the 50 day EMA 4.44 is also higher than the current trading price depicting a bearish trend overall..
Ocwen Financial Corporation (NYSE:OCN) is all set to announce its earnings on May 03/b. As per Zack’s analyst ratings, Ocwen Financial Corporation (NYSE:OCN) currently has an average brokerage rating of 3. 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 (NYSE:OCN) is $2.833 with a high of $3.5 and a low of $2.
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 18.33 suggesting a bearish price action.
Ocwen Financial Corporation today announced it is working with New Residential Corporation (New Residential) towards an agreement that would further solidify and enhance the business relationship between the two companies. The proposed new agreement relates to approximately $117 billion in mortgage servicing rights (“MSRs”), and would convert New Residential’s existing Rights to MSRs to fully-owned MSRs; this would be completed as soon as possible following the signing of a definitive agreement.
As such, while we believe Ocwen Financial Corporation (NYSE:OCN) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.