Umpqua Holdings Corporation (UMPQ) Stock Doesn’t Offer Much Upside?

The Umpqua Holdings Corporation (NASDAQ:UMPQ) bulls won the day, but the reality is that the 0.15 points or 0.85 percent advance gave very little definitive technical indication of where the stock could be headed next. On 14 March, the shares traded at $17.74 with a light trade volume of 1.896 million shares. After opening the session at $17.63, the shares went as high as $17.78 and as low as $17.52, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $3.91 billion and now has 220.24 million shares outstanding. Umpqua Holdings Corporation (UMPQ) stock has lost -0.73 percent of market value in 21 trading days.

UMPQ stock has a trailing 3-year beta of 1.13, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.43 a share in the trailing twelve months. The stock’s value has surged 11.57 percent year to date (YTD) against a decline of -21.61 percent in 12 month’s time. The company’s shares still trade -28.73 percent away from its 1-year high of $24.89 and 17.6 percent up from 52-week low of $15.09. The average consensus rating on the company is 2.5, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Umpqua Holdings Corporation (UMPQ) will probably climb 14.54 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $23-month high price target. This represents a whopping 29.65 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $19.25, which represents a return potential of 8.51 percent when compared to the closing price of the stock of $17.74 on Thursday, March 14. The lowest price target for the stock is $18.5 — slightly more than 4.28 percent from UMPQ’s current share price.

History has shown that shares in Umpqua Holdings Corporation have gone up on 22 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings.

The stock is currently hovering around the first support level of $17.58. Below this, the next support is placed in the zone of $17.42. Till the time, the UMPQ stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 47.15 on daily chart, which may remain a cause for concern. If the price breaks below $17.42 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $17.84 mark may result into a pull-back move towards $17.94 level.

Shares of Umpqua Holdings Corporation (UMPQ) are trading at a P/E ratio of 12.27 times earnings reported for the past 12 months. The industry UMPQ operates in has an average P/E of 19.09. Its P/E ratio went as low as 11.1X and as high as 21.68 over the 5-year span.Further, it is sporting a 3.66 on the Price-to-Sales ratio. Compare this with the industry average P/S of 8.15.