Momentus Inc. Stock Plummets 23%, Indicates Bleak Outlook, 1 month ago

Momentus Inc. Technical Analysis

The technical indicators for Momentus Inc. (MNTS) paint a bleak picture. As of the last closing price on January 12, 2024, the stock has plummeted by 23.21% to stand at $0.9599. Volume spiked to almost double the average, indicating significant investor interest, potentially due to panic selling given the drop.

The Relative Strength Index (RSI14) is at 22, which is well below the threshold of 30 and suggests that MNTS is deeply oversold. An oversold condition can sometimes precede a rebound as traders look for bargain prices, but this is not guaranteed, especially in absence of a positive catalyst.

MNTS is trading substantially below its 50-day moving average ($2.4959) and its 200-day moving average ($11.110475), which are bearish signals that indicate a long-term downtrend. The Moving Average Convergence Divergence (MACD) also reflects negative momentum, with a value of -$0.368694.

The Average True Range (ATR) indicates high volatility with a large value of 28.22, which is consistent with the significant percentage drop observed. Notably, the stock has no clear support level since it is at its year low, and without any physical resistance level, the stock could potentially continue to slide.

Fundamental Analysis

Utilizing a fundamental approach, Momentus Inc.'s situation looks precarious. The company has a negative EPS of -$43.18, highlighting significant losses. It also sports a negative P/E ratio of -0.02, which suggests that investors are hardly attributing any earnings to the stock, often a sign of distress or concerns over the company's future profitability.

Momentus Inc. The key piece of news for Momentus Inc. pertains to its severe financial distress. The company warned it is running dangerously low on money and currently has no financial backstop. This fundamental issue overshadowed any technical indicators, perhaps explaining the stock's heavy sell-off.

With a market cap of only $6.3 million, Momentus Inc. has declined drastically from once being valued over a billion dollars. Given the warning issued to shareholders and the absence of a financial solution, investor confidence appears to be waning.

Stock Performance Prediction

For the next trading day, January 16, 2024, and the week following, predicting stock performance necessitates a cautious approach. Given the alarming news and deeply oversold conditions, a relief bounce could occur if the company announces any positive developments. However, without such news, the prevailing trend may continue, influenced by investor sentiments and their reaction to the company's financial distress.

Traders should be prepared for continued volatility and potentially more downside if no positive catalyst emerges. The high ATR suggests any moves could be sudden and substantial.

Overall Evaluation

Considering both the technical and fundamental analysis, Momentus Inc.'s stock would be classified as a 'Sell.' The overwhelming negative sentiment, coupled with dire financial warnings without a clear solution, drastically undermines investor confidence. High volatility and the current negative momentum suggest that the likelihood of an immediate recovery is slim. Thus, conservatively, without concrete signs of a turnaround, it may be warranted to exit positions to mitigate further losses. Investors will closely watch the earnings announcement scheduled for March 5, 2024, for any signs of improvement or further decline. But until then, the risks seem to outweigh the potential rewards.

Check full Momentus Inc. forecast and analysis here.