Alert: Unfavorable Invest/Fund Signals (3/29/18)-Libbey Inc. (NYSEAMERICAN: LBY)

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Libbey Inc. (NYSEAMERICAN: LBY)

ALERT – POTENTIAL TREND CHANGE

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Potential Negative Trend Change/Rating

Libbey Inc. (NYSEAMERICAN: LBY). Meaningful negative changes in fundamentals have recently occurred: significant decrease in consensus estimate for December, 2018, significant quarterly earnings deceleration, and significant decrease in consensus estimate for December, 2019.

Recent meaningful negative changes in investment behavior have impacted Libbey Inc. (NYSEAMERICAN: LBY): price decline on very heavy volume.

In light of these highly negative signals we are reviewing our current Overall Rating of D. We would continue to view the shares with caution pending completion of this review in the next several days.

Current Rating

Reflecting future returns on capital that are forecasted to be in line with the cost of capital, LBY is expected to be Value Creation neutral.

Libbey has a current Value Trend Rating of D (Negative). The Value Trend Rating reflects very contradictory signals from PTR’s two proprietary measures of a stock’s attractiveness. Libbey has a slightly positive Appreciation Score of 61 but a very low Power Rating of 1, resulting in the Negative Value Trend Rating.

Recent Price Action

Libbey stock suffered a major decline on 3/29/18. The shares fell -9.6%, closing at $4.89. Moreover, trading volume was exceptionally high at 370% of normal. The stock has been extremely weak relative to the market over the last nine months and has declined -22.9% during the last week.

About John Lafferty 121363 Articles
During his career, John has developed valuation and stock rating methodologies, managed institutional portfolios and mutual funds, and provided equity research to institutional investors on thousands of companies. He has been Director of Research at PTR since its inception in 2004.

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