With shares of Nasdaq OMX Group (NASDAQ:NDAQ) trading around $31, is NDAQ an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework.
T = Trends for a Stock’s Movement
Nasdaq OMX Group is a holding company. It is a global exchange group that delivers trading, clearing, exchange technology, regulatory, securities listing, and public company services across six continents. Its global offerings are diverse: trading and clearing across multiple asset classes, market data products, financial indexes, capital formation solutions, financial services and market technology products and services. The company operates in three segments: Market Services, Issuer Services, and Market Technology.
On August 22, trading was halted on the Nasdaq OMX’s exchange in what is known in the industry as a “flash freeze.” The incident, which negligibly affected stock prices, reminded regulators and exchange operators just how fragile the modern market is given its dependence on intricate software systems. It was a problem with its software — the technology on which trading relies — that forced the Nasdaq exchange to go offline for more than three hours, a slightly ironic problem for an exchange home to many of the worlds biggest technology companies.
T = Technicals on the Stock Chart Are Mixed
Nasdaq OMX Group stock has struggled to construct a solid uptrend in recent years. The stock is currently trading near mid-prices for the year and may continue to bounce around as it finds value. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Nasdaq OMX Group is trading between its key averages, which signals neutral price action in the near term.