Mullen Automotive, Inc. Faces Bearish Outlook Amidst Lower Sales Forecasts and Negative EPS

Fundamental Analysis

Mullen Automotive, Inc. (NASDAQ: MULN) closed on 6th November 2023 at $0.31, marking a 3.88% increase from the previous trading session. The company currently possesses a market capitalization of around $95.71 million. Over the course of the year, the company’s stock price has reached a high of $12 and plunged to a low of $0.10.

Recently, the company's CEO, David Michery, is set to obtain another 9.65 million shares for meeting specific milestones outlined in his Performance Stock Agreement. Considering the news, one could argue that the company is appreciative of Michery’s executive performance.

However, the firm recently had to adjust its Q4 sales forecasts for the Mullen THREE, which revealed much lower expectations. This indicates some volatility in projected revenues, affecting investor sentiment regarding the company's future financial performance.

The company's earnings per share (EPS) stands at -$319.08, suggesting a considerable loss for the company. Moreover, the company does not have a calculated PE ratio, signifying it did not generate positive earnings.

Technical Analysis

Over the last 50 days, MULN has been trading below its 50-day moving average of $0.44. Over a more extended period, the company's stock price also sits below its 200-day moving average at $2.10. The moving averages suggest an ongoing bearish trend.

The company's Relative Strength Index (RSI) stands at 44, neither overbought nor oversold. The Moving Average Convergence Divergence (MACD) for the past three months is -0.08; a negative MACD indicates a potential downward price trend.

The stock has support and resistance levels at $0.31 and $0.3136, respectively. The success or failure of the stock in breaking these levels could indicate the future direction of the stock's movement.

The stock’s average trading volume stands around 75.25 million shares, while the last session saw a volume of around 43.05 million shares, indicating less interest in the stock on that day.

Stock Price Forecast

Given the bearish technical indicators, the recent news of lower sales forecasts, and the company’s negative EPS, it's likely that MULN's price may remain under pressure in the coming trading session.

For the upcoming week, considering the overall bearish sentiments and current market trend, the stock price might stay below the 50-day Moving Average, without any strong upside momentum.

Final Evaluation

Mullen Automotive, Inc. falls into a 'Sell' category based on the stated data. Its ongoing loss, the recent negative news about lower sales forecasts, and bearish technical indicators all provide a negative outlook for the stock. Therefore, selling may be the prudent course of action. However, investors should always consider diversified portfolios to mitigate risks linked with a single security and monitor market conditions periodically.