Wal-Mart shares close lower on Thursday, retailer reported to be in advanced discussions to acquire Bonobos Inc

According to sources with knowledge of the matter, cited by Recode, Wal-Mart is currently in advanced talks regarding the acquisition of online men’s fashion retailer Bonobos Inc. A potential deal would mark the fourth e-commerce acquisition made by the US retailer in less than 1 year, as it has been trying to catch up with rival Amazon.com Inc. However, neither of the two companies has so far commented on the matter.

Wal-Mart shares closed lower on Thursday, while marking their first loss in the past five trading sessions. The stock went down 0.39% ($0.29) to $73.15, with the intraday high and the intraday low being at $73.66 and $73.15 respectively. In the week ended on April 16th the shares of the retail chain added 0.34% to their market value compared to a week ago, which marked a third consecutive period of gains, but yet, the smallest increase since the week ended on March 12th. The stock has pared its advance to 1.48% so far during the current month, following a 1.62% surge in March. The latter has been a second straight month of gains. For the entire past year, Wal-Mart shares gained 12.76%.

As reported by Recode, a price has been agreed on by the two companies, while the deal is in final due diligence. The media also said the deal could be estimated at 1-2 times revenue. Bonobos Inc generated between $100 million and $150 million in revenue in 2014, while being valued at $300 million.

According to CNN Money, the 31 analysts, offering 12-month forecasts regarding Wal-Mart’s stock price, have a median target of $73.00, with a high estimate of $90.00 and a low estimate of $60.00. The median estimate is a 0.21% decrease compared to the closing price of $73.15 on April 13th.

The same media also reported that 20 out of 36 surveyed investment analysts had rated Wal-Mart Stores’ stock as “Hold”, while 12 – as “Buy”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Wal-Mart stock are presented as follows:

R1 – $73.20
R2 – $73.24
R3 (Range Resistance – Sell) – $73.29
R4 (Long Breakout) – $73.43
R5 (Breakout Target 1) – $73.59
R6 (Breakout Target 2) – $73.66

S1 – $73.10
S2 – $73.06
S3 (Range Support – Buy) – $73.01
S4 (Short Breakout) – $72.87
S5 (Breakout Target 1) – $72.71
S6 (Breakout Target 2) – $72.64

By using the traditional method of calculation, the weekly levels of importance for Wal-Mart Stores Inc (WMT) are presented as follows:

Central Pivot Point – $73.24
R1 – $73.74
R2 – $74.34
R3 – $74.84
R4 – $75.35

S1 – $72.64
S2 – $72.14
S3 – $71.54
S4 – $70.95