Dean Foods Co (NYSE:DF) Credit Suisse Targets $14

Dean Foods Co (NYSE:DF) Credit Suisse Targets $14

Dean Foods Co (NYSE:DF) Credit Suisse Targets $14

  • Dean Foods Shares Down 3% Following Credit Suisse Lowered Price Target From $18 To $14, Maintained Sell Rating
  • Dean Foods (DF -1.4%) trades lower after Credit Suisse drops its price target to $14. The investment weighs in on the impact of grocery stores adjusted their milk pricing.
  • “We believe that U.S. grocers are in the early stages of opening up a competitive price war in private label milk. On June 15, the second biggest U.S. grocer Kroger said that it had introduced ‘hot promotional price points’ on its private label milk business, presumably to compete more aggressively with Lidl and Wal-Mart. When this dynamic occurs, Dean tends to suffer margin compression as consumers trade down from higher-margin branded milk sales and into lower margin private label.”
  • Dean Foods is rated at Underperform by CS.

Dean Foods Company is a food and beverage company. The Company processes and distributes fluid milk, and other dairy and dairy case products in the United States. It is engaged in manufacturing, marketing, selling and distributing a range of branded and private label dairy and dairy case products. It offers branded and private label dairy case products, including fluid milk, ice cream, cultured dairy products, creamers, ice cream mix and other dairy products to retailers, distributors, foodservice outlets, educational institutions and governmental entities across the United States. It also offers juices, teas and bottled water. As of December 31, 2016, the Company had over 50 national, regional and local dairy brands, as well as private labels. As of December 31, 2016, the Company’s national, local and regional licensed brands included Alta Dena, Hygeia, PET, Arctic Splash, Jilbert, Pog, Barbers Dairy, Purity, Berkeley Farms, Land-O-Sun & design and ReadyLeaf, Broughton.

Overall, the bias in prices is: Downwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 17.63.

The projected upper bound is: 15.70.

The projected lower bound is: 14.32.

The projected closing price is: 15.01.

DEAN FOODS CO closed down -0.880 at 15.100. Volume was 181% above average (trending) and Bollinger Bands were 112% wider than normal.

Open        High          Low          Close        Volume
15.580      15.870      15.060      15.100      4,280,184

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period       50-period     200-period
Close:                       16.51                18.02            18.94
Volatility:                34                    26                  34
Volume:                   1,861,269      1,591,610      1,579,189

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

DEAN FOODS CO gapped down today (bearish) on heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
DEAN FOODS CO is currently 20.3% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume out of DF (mildly bearish). Our trend forecasting oscillators are currently bearish on DF and have had this outlook for the last 49 periods. Our momentum oscillator is currently indicating that DF is currently in an oversold condition.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 6.6194. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 22 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 14.59. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 6 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -161.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 11 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 13 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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