Knowledge center · Street & insiders
Analyst recommendation trend
How many covering analysts rate the stock buy/hold/sell, and whether that mix has been improving or deteriorating month over month.
Formula
Buy ratio = (strong buy + buy) / total ratings; trend compares the ratio across the last four monthly snapshots.
Interpretation
The level shows consensus; the trend shows where consensus is heading. Revisions move prices more than levels — a 60% buy ratio that was 45% three months ago is a stronger signal than a static 70%.
What good looks like
A rising buy ratio — upgrades outpacing downgrades.
What bad looks like
A falling ratio, especially from a high level: early distribution often shows up in ratings first.
Typical range
Large caps average roughly 55–65% buy ratings — sell ratings are structurally rare.
Limitations
Ratings herd and lag price; sell-side incentives skew the base rate optimistic. Read the trend, discount the level.
How OmniSignal uses it
Analyst revisions are one of the best-documented drivers of medium-term returns.
Where it enters the score
Not a scoring input — analyst price targets feed the fundamental sleeve separately; this trend is context.
References
Womack (1996), Journal of Finance · Jegadeesh et al. (2004)
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