What’s Next For Brookfield Infrastructure Partners L.P. (NYSE:BIP) As Shares Move 1.39% For Week

When investors engage in short selling or “shorting a stock”, they actually borrow shares from an existing owner, sell the borrowed shares at market price, and take the cash.  The short sellers then promise to replace the stock in the future and makes dividend payments out of their own pockets to cover the dividend income that is no longer exists on the original, now borrowed and sold, shares. In order to see if the short are in play with Brookfield Infrastructure Partners L.P. (NYSE:BIP), we’ll take a look at some key indicators.  First, the 407.42 shares outstanding, 404.65 are float and the short ratio stands at 4.9.  In addition to short data, analyst recommendations should also be considered as these research firms monitor much more than just the short data and financials.

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The consensus analysts recommendation at this point stands at 2.2 for Brookfield Infrastructure Partners L.P.. This is based on a 1-5 scale where 1 indicates a Strong Buy and 5 a Strong Sell. Further, analysts have a 12 month target price of $51.36 on company shares. This is according to the analysts polled by Thomson Reuters which have recently published research reports on the firm.

For the next year, sell-side analysts are expecting EPS growth of 104.59% for Brookfield Infrastructure Partners L.P. (NYSE:BIP). Analysts are expecting an EPS change of 32.20% for the current year.

Peter Lynch says in his best-selling book, “One Up on Wall Street”, that institutional ownership is a negative thing.  “Institutions don’t own it and the analysts don’t follow it”.  He favors the stocks that big investment groups pass on because he feels that these stocks are undervalued.

Traders may be focusing in on the ATR or Average True Range indicator when performing stock analysis. At the time of writing, Brookfield Infrastructure Partners L.P. (NYSE:BIP)
has a 14-day ATR of 0.64. The average true range indicator was developed by J. Welles Wilder in order to measure volatility. The ATR may assist traders with figuring out the strength of a breakout or reversal in price. It is important to note that the ATR was not designed to determine price direction or to predict future prices.

Currently, the 14-day ADX for Brookfield Infrastructure Partners L.P. (NYSE:BIP) is sitting at 32.04. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would identify a very strong trend, and a value of 75-100 would lead to an extremely strong trend. ADX is used to gauge trend strength but not trend direction. Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a trend.

Checking in on some other technical levels, the 14-day RSI is currently at 69.35, the 7-day stands at 76.07, and the 3-day is sitting at 78.5. Many investors look to the Relative Strength Index (RSI) reading of a particular stock to help identify overbought/oversold conditions. The RSI was developed by J. Welles Wilder in the late 1970’s. Wilder laid out the foundation for future technical analysts to further investigate the RSI and its relationship to underlying price movements. Since its inception, RSI has remained very popular with traders and investors. Other technical analysts have built upon the work of Wilder. The 14-day RSI is still a widely popular choice among technical stock analysts.

Investors may be watching other technical indicators such as the Williams Percent Range or Williams %R. The Williams %R is a momentum indicator that helps measure oversold and overbought levels. This indicator compares the closing price of a stock in relation to the highs and lows over a certain time period. A common look back period is 14 days. Brookfield Infrastructure Partners L.P. (NYSE:BIP)’s Williams %R presently stands at -14.62. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would indicate an overbought situation. A reading from -80 to -100 would indicate an oversold situation.

Taking a closer look from a technical standpoint, Brookfield Infrastructure Partners L.P. (NYSE:BIP) presently has a 14-day Commodity Channel Index (CCI) of 90.28. Typically, the CCI oscillates above and below a zero line. Normal oscillations tend to stay in the range of -100 to +100. A CCI reading of +100 may represent overbought conditions, while readings near -100 may indicate oversold territory. Although the CCI indicator was developed for commodities, it has become a popular tool for equity evaluation as well.

Recently, the stock stands -0.87% away from the 52-week high and 55.52% from the 52-week low. Brookfield Infrastructure Partners L.P. (NYSE:BIP)’s performance this year to date is 45.29%.  The stock has performed 1.39% over the last seven days, 3.32% over the last thirty, and 12.94% over the last three months.  Over the last six months, Brookfield Infrastructure Partners L.P.’s stock has been 20.31% and 34.87% for the year.

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