Sign InMomentus Inc. Faces Sell Rating Amid Weak Fundamentals and Bearish Technical Trend
Summary
Momentus Inc. (MNTS) has seen a recent increase in its stock price, but it has weak fundamentals and a bearish technical trend, leading to a 'Sell' rating; however, investors should monitor the upcoming earnings announcement and be prepared for potential volatility. (Analysis date: October 17, 2023)
Fundamental Analysis
Momentus Inc, under the ticker MNTS, had a recent closing price of $4.97 as of October 17, 2023, up by $0.12 or an increase of 2.47%. It currently has a Market Capitalization of roughly $13.39 million. The yearly high for the stock was $79.50, while the year low was $1.03, a considerable divergence in the stock's performance range.
The company has reported an EPS of -$55.01 which makes the PE ratio a negative count of -0.09. This suggests that the company has been running at a loss and has not been profitable in recent times.
The company's shares are listed on the NASDAQ exchange and have an average volume of 3.02 million as compared to the current volume of 15.12 million, indicating a significantly higher level of current trading activity. As of the last close, the stop-loss is set at $4.83, while the support and resistance levels are $4.85 and $5.29 respectively.
The earnings announcement is scheduled for 11/06/2023. It's worth noting the company’s discounted cash flow (DCF) value, which currently stands at $5.72. This suggests that the stock is slightly overpriced compared to its intrinsic value.
Technical Analysis
On a technical level, MNTS has performed below its 50-Day Moving Average of $7.07 and far below its 200-Day Moving Average of $22.72, suggesting a longer-term downtrend. The MACD (3-month) stands at -1.25 suggesting a bearish sentiment in the short term.
Moreover, the stock has an RSI14 value of 83, which is generally considered as in the overbought territory, suggesting that there may be a potential price correction or a slight bearish movement in the coming days.
The Average True Range (ATR) is at 21.22, which suggests heightened asset volatility.
Relevant News and Prediction
Recently on October 16, 2023, the stock market showed signs of recovery with the rise of both penny stocks and high-value stocks, and Momentus Inc. was among those stocks.
For the next trading day (October 18, 2023), given the overbought nature of the stock and the wider stock market’s recent upturn, it would not be surprising to see a slight correction in MNTS. In the upcoming week, factors such as the company's earnings announcement date will significantly affect the stock's performance.
Final Evaluation
In conclusion, given the company's rather weak fundamentals, including negative earnings and an overpriced intrinsic value suggested by the DCF, along with a bearish technical trend, Momentus Inc. (MNTS) is rated as a 'Sell' at this point. However, investors should be aware of the upcoming earnings announcement and be ready for potential volatility, utilizing stop-loss orders if necessary.
