OmniSignal
Open terminal

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)

Related concepts

EPS surprise historyInsider sentiment (MSPR)