What is a Consensus Recommendation?
Consensus recommendations are essentially a collection of analyst ratings on a given stock that have been utilized to produce an average analyst recommendation. By identifying the key elements of each analyst recommendation, it is possible to determine what the overall recommendation is for dealing with the stock option. A consensus recommendation may indicate the action of holding onto current shares, buying additional shares, or selling all or part of the shares currently in hand. In order achieve a consensus recommendation, the findings of each stock analyst will be assigned a number value. The type of recommended action inherent in the individual recommendations carry a different number value for each recommended action. For example, the recommendation to buy would often be identified as a 5, while a recommendation to hold current shares would merit a value of 3. After all the recommendations are identified, the number values are added and the sum divided by the number of analyst r
