Fisker Inc. (FSR) Sees Impressive Surge in Stock Price, Future Upside PotentialStockInvest.us, 1 month ago
Technical Analysis of Fisker Inc. (FSR)
The end of year trading session for Fisker Inc. (FSR) on December 29, 2023, saw the stock closing at $1.75, with an impressive surge of 15.89% from the previous close. Despite this jump, the stock remains significantly lower than its 52-week high of $8.66, and closer to its 52-week low of $1.35. This upswing has brought the Relative Strength Index (RSI) to 56, showcasing some buying momentum but not yet reaching overbought territory, which could signal a potential for further upside in the near term if the buying pressure continues. The substantial trading volume on December 29th of 140.12 million shares, compared to the average volume of 18.32 million, indicates heightened investor interest, possibly in response to the recent positive news about the company's 2023 vehicle deliveries.
Looking at moving averages, FSR is presently trading well below both its 50-day moving average of $2.84 and its 200-day moving average of $5.17, which typically suggests a bearish sentiment in the middle and long term. The Moving Average Convergence Divergence (MACD) stands at -0.27, further indicating a downward trend. However, the recent bump could signal the start of a trend reversal if sustained. With an Average True Range (ATR) of 11.76, FSR exhibits high volatility, which traders might find enticing for short-term opportunities. The current support and resistance levels are at $1.73 and $1.83 respectively, indicating a narrow trading range to watch for the next trading day.
Fundamental Analysis of Fisker Inc. (FSR)
Fisker’s market capitalization rests at approximately $613.47 million with negative earnings per share (EPS) of $-1.43, and a Price-to-Earnings (PE) ratio that is also negative at -1.22, revealing the company’s current lack of profitability. However, analysts' targets for the stock indicate a significant upside with a high estimate of $20, a low of $8, and a median target of $13, suggesting that there may be long-term growth expectations for Fisker. The consensus recommendation of 'Buy' based on 5 'Buy', 3 'Hold', and 2 'Sell' ratings, indicates a moderate positive sentiment amongst analysts.
The recent news highlights Fisker's significant production of 10,142 units and deliveries of approximately 4,700 vehicles in 2023, an encouraging development for the company, which has only recently begun making deliveries. This positive production and delivery news is a driver behind the latest stock surge and may provide a boost in investor confidence. The reported increase of 300% in deliveries in Q4 2023 versus Q3 2023 is promising and could indicate the company's operational scaling. Additionally, the announcement of a plan to enhance sales and deliveries further in the coming month paints a positive outlook for the company's operational trajectory.
Stock Performance Predictions
For the next trading day on January 02, 2024, FSR may carry forward the momentum from the recently-reported surge in vehicle deliveries. Given the large spike in volume and the substantial rise in price, a continuation or a slight retracement due to profit-taking from the prior session's gains could occur. For the upcoming week, stability around the current levels or an attempt to test the resistance at $1.83 is plausible. Whether the bullish trend appears sustainable will depend on investor sentiment and market reaction to the recent positive news.
The combination of recent positive developments concerning Fisker's vehicle production and delivery performance and the stock's surge in price positions the stock as a 'Hold' with potential 'Buy' signals for the near term. The current technical indicators hint at a possible turnaround or stabilization following an extended period of bearishness. Nonetheless, investors should be cautious given the high volatility and the company's fundamental lack of profitability reflected in negative EPS and PE.
The 'Hold' recommendation comes with a consideration for investors to closely monitor FSR's forthcoming financial results and strategic plans for boosting sales, which could provide further insights into the company's viability and prospects. The performance in the next few trading sessions could signal whether the recent spike represents a short-term reaction to the news or the beginning of a more sustained recovery trend.