Leggett & Platt's stock price triggers RSI overbought and Bollinger Bands narrowing.

Leggett & Platt's 15-minute chart has triggered an RSI Overbought condition and Bollinger Bands Narrowing at 14:00 on April 29, 2025. This suggests that the stock price has risen too rapidly and is now above the level of fundamental support. Furthermore, the magnitude of the stock price fluctuations has decreased, indicating a narrowing of the price range and potentially signaling a loss of momentum.

Leggett & Platt (LEG) shares surged 17% after the company reaffirmed its FY2025 guidance, with analysts projecting significant upside potential. The stock's recent performance has been driven by the firm's optimistic outlook, with projected revenues between $4.0 billion and $4.3 billion and an adjusted EPS ranging from $1.00 to $1.20. Despite mixed first-quarter results, Leggett & Platt remains optimistic about potential tariff benefits and risks moving forward [1].

Wall Street analysts have set an average one-year price target of $9.33 for Leggett & Platt, with projections ranging from $8.00 to $11.00. This suggests a potential upside of 28.38% from the current share price of $7.27. Additionally, consensus recommendations from four brokerage firms categorize Leggett & Platt at an average rating of 3.0, indicating a "Hold" status [1].

Technical indicators, however, provide a different perspective. As of 14:00 on April 29, 2025, Leggett & Platt's 15-minute chart triggered an RSI Overbought condition and Bollinger Bands Narrowing. This suggests that the stock price has risen too rapidly and is now above the level of fundamental support. The narrowing of the price range also indicates a potential loss of momentum [2].

Investors should closely monitor these technical indicators and consider the company's fundamentals when making investment decisions. While the reaffirmation of FY2025 guidance has led to a significant increase in the stock price, the technical indicators may suggest caution.

References:
[1] https://www.gurufocus.com/news/2810502/leggett-platt-leg-stock-soars-after-fy2025-guidance-affirmation
[2] https://www.gurufocus.com/news/2804554/lexaria-announces-2-million-registered-direct-offering-of-common-stock-lexx-stock-news?mobile=true

Ask Aime: Should I hold or sell Leggett & Platt (LEG) after a 17% surge?