UNITED TECHNOLOGIES ANNOUNCES SPLIT, STOCK TARGETING MA5

In the Premarket trading session on Tuesday, United Technologies stock was trading at $125- lower by 2.33% as compared to the previous closing price.

In recent news, the company announced late on Monday that it plans to split into three independent companies: United Technologies, Otis and Carrier.

United Technologies also said that it has completed its acquisition of Rockwell Collins and combined that business with UTC Aerospace Systems to form Collins Aerospace Systems. That unit will be part of the United Technologies after the separation.

The other two companies will be elevator manufacturer Otis and Carrier. They provide a number of products including those related to HVAC and refrigeration.

The company further said that it expects to finish the separation in the year 2020. CEO Gregory Hayes said in a statement that by splitting up its businesses, each company will be better positioned.

United Technologies has scheduled an investor call for today at 8 a.m., ET.

Last week, the company received key antitrust approval from China for its $23 billion purchase of aircraft parts maker Rockwell Collins. The deal is the largest in aerospace history. The two companies combined brought in nearly $67 billion in revenue last year.

The industrial giant also updated its financial outlook to include its acquisition of Rockwell Collins. United Technologies said it now expects 2018 sales between $64.5B and $65B, up from its previous range of $64B to $64.5B.

United Technologies expects the Rockwell Collins deal lead to a 10-cent impact on EPS. The industrial giant is now forecasting adjusted earnings between $7.10 a share and $7.20 a share.

The current price is below MA5 and MA20. The current price is below the middle line of the Bollinger bands and is heading downwards. The stock is expected to open lower on Tuesday. Overall Bias is Negative and short-term trades can be initiated with tight Stop Loss and Profit targets.

TRADE SUGGESTION-LIMIT SELL AT 126 TAKE PROFIT AT 123  STOP LOSS AT 128

 

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