Sign InMullen Automotive, Inc. (MULN) Shows Volatility and Uncertainty, but Promising EV Developments
Summary
Mullen Automotive, Inc. (MULN) closes at $1.02 with a slight increment, trading near its lowest level for the year, and faces volatility and uncertainty in the upcoming week, suggesting a hold for investors.
Technical Analysis
Mullen Automotive, Inc. (MULN) saw its price closing at $1.02 on August 14, 2023, with a slight increment of 0.01 representing a price change of 0.99%. The stock's daily low was $0.96, and it hit a high of $1.07. From a technical perspective, the stock is currently trading near its lowest level for the year, which was $0.10, a great distance from its year-high of $22.75.
MULN's market capitalization stands at $621.37 million. The trading volume of MULN is 18.87 million, significantly lower than the average trading volume of 265.26 million, indicating lesser active trading in the recent sessions.
The 14-day Relative Strength Index (RSI) is at 38, indicating the stock is neither overbought nor oversold. However, the 50-day Moving Average (MA50) stands at $0.25 while the longer 200-day Moving Average (MA200) is $4.06, showing the stock in an extended downtrend.
The Moving Average Convergence Divergence (MACD) for the last three months stands at -0.15, indicating bearish momentum. The stock's Average True Range (ATR) at 22.06 indicates high price volatility.
MULN is trading around the support level of $1.01 with the resistance level at $1.23, suggesting the presence of a tight trading range.
Fundamental Analysis
Mullen Automotive, Inc. operates with a Price to Earnings (P/E) ratio of zero and reported an EPS of $282.57. A P/E ratio of zero can indicate that investors are not willing to pay a price for earnings, possibly due to negative or uncertain future earnings expectations. The company also reported a significant quarterly loss of $11.14 per share, compared to a loss of $4.26 a year ago. This increased deficit is a cause for concern.
The company counts 643.37 million shares outstanding, indicating a moderately sized base that is neither too diluted nor too concentrated.
Despite the established losses, significant news points towards positive investor behavior. Notably, an increase in institutional ownership was reported for the second quarter. Additionally, the firm made significant moves in the Electric Vehicle (EV) segment, sparking interest among investors.
Stock Prediction and Final Evaluation
Given the technical and fundamental analysis presented above, predicting price movements for the next trading day on August 15, 2023, or the upcoming week is challenging, given the stock's current volatility and uncertainty.
For the next trading day, if MULN can maintain its current level around the support level, it could possibly inch upwards, striving towards the resistance level at $1.23. However, given the company’s recent earnings announcement and extended downtrend, it's difficult to foresee any significant bullish action for this stock in the upcoming week.
To conclude, the current evaluation of Mullen Automotive, Inc. (MULN) suggests it's a Hold. While the stock exhibits signs of volatility and significant earning losses, institutional investor interest and significant developments in the EV segment do seem promising. However, caution is advised until the company shows consistent improvements in its financials, along with a confirmed change in the negative technical trend. Comparatively, the company's shares have been underperforming and are trading significantly below its 200-DMA, further stressing the need for evidence of a trend reversal before a more confident investment stance can be assumed.
