Sign InMullen Automotive Stock Evaluates as 'Hold' Amid Technical and Fundamental Analysis
Summary
Mullen Automotive, Inc. stock (MULN) closed at $0.50 on September 13, 2023, showing a 1.62% gain from its previous close, with a severely oversold RSI suggesting a possible price reversal, but the negative trend and negative EPS raise concerns, making a 'Hold' position the most prudent approach.
Overall Technical Analysis
Mullen Automotive, Inc. (Ticker: MULN) saw its stock close at $0.50 on September 13, 2023, posting a modest 1.62% gain from its previous close. The intraday high and low were $0.54 and $0.49 respectively. The trading volume of the company's shares was significantly low compared to the three-month average, registering a figure of 120.26 million against an average of 276.68 million.
The company's Relative Strength Index (RSI14), a popular momentum oscillator, is currently at 21, implying that the stock is severely oversold and might witness a price reversal in the future. The 50-day moving average (MA50) stands at $0.37, while the 200-day moving average (MA200) is at $3.25. The stock price, which is lower than both MAs, indicates a general bearish trend. Contrastingly, the negative three-month Moving Average Convergence Divergence (MACD) of -0.21 suggests negative momentum.
The present support and resistance levels stand at $0.49 and $0.53 respectively. Crossings of these thresholds could signify important trend changes.
Overall Fundamental Analysis
Mullen Automotive has a market capitalization of roughly $107.74 million and an outstanding share count of 184.17 million. Nevertheless, the company's reported Earnings per Share (EPS) is significantly negative at -$1023.11, which contributes to a null Price-to-Earnings (PE) ratio.
The company is listed on the NASDAQ Exchange. However, there's no clear consensus regarding its buying or selling status from the analyst community, indicating a lack of expert opinions concerning MULN's potential.
Latest Developments
The company's recent news, particularly its acquisition of battery pack production assets from Romeo Power for approximately $3.5 million, triggered positive developments in its stock price. In addition, announcing new tour dates caused an increase of around 17% in the shares during early afternoon trading.
Stock Price Prediction
Based on the current technicals, there might be a price reversal due to the decreased RSI, implying the stock is oversold. The modest increase in stock price, amplified by recent positive news, could drive an upward trend for the next trading day, September 14, 2023. However, considering the general bearish trend and the severely negative EPS, it's risky to predict significant gains in the coming week.
Final Evaluation
Given both the technical and fundamental analysis alongside the latest developments, MULN's stock is evaluated as a 'Hold.' The severely negative EPS, combined with the lack of clear analyst consensus, raises concerns about the company's profitability. However, the oversold RSI, the recent uptick in price catalyzed by the company's news, and the potential support of its acquisitions suggest there may be future opportunities for stock price appreciation. Therefore, in the intermediate term, maintaining a 'Hold' position seems the most prudent approach towards MULN stock.
