Tom Reese/Paul Rubillo, Dividend.com
Shares of NYSE Euronext (NYX) stock retreated Monday, after the liquid exchange group's shares were downgraded by several financial analysts.
Goldman Sachs analyst Daniel Harris downgraded NYX to a ''sell,'' and also cut his 2009 earnings estimate for the company by 14%. He said that ''lower exchange rates for the Euro and British pound present a significant headwind'' for the company, which operates the New York Stock Exchange.
NYSE Euronext makes around 50 percent of its overall revenues from its stock exchanges across Europe. The company bills those revenues in local currencies, which have fallen sharply in the past several months.
The Bottom Line
We had removed shares of NYX from our ''Recommended'' list on Jan.20, when the shares traded at $22.23. The stock was on the list at the price of $27.53. The company has a 5.45% dividend yield, based on Friday's closing stock price of $22.00. The stock has technical support at the $14-17 price levels. If the shares can rebound, we see overhead resistance around the $29-30 levels. We are watching the stock closely as it was a name we had liked a lot before the deletion from our favorites list.
NYSE Euronext (NYX) is not recommended at this time, holding a Dividend.com Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
