Nikola Corporation (NKLA) Stock: Fundamental Analysis, Price Prediction, and Analyst RatingsStockInvest.us, 1 month ago
Nikola Corporation (NKLA) holds a market cap of $940.47 million and is listed on the NASDAQ exchange. As of the last trading day on October 23, 2023, the stock closed at a price of $0.95 with a volume of 50.89 million shares, below the average trading volume of 79.07 million shares. It's also worth noting that currently they have 985.20 million shares outstanding.
The company's earnings per share (EPS) stands at a negative $1.45. The P/E ratio is also negative at -0.66, which is below average for the industry. This indicates the company is currently not profitable and investors are anticipating future earnings.
The company's stock has been trading between a year low of $0.52 and a year high of $3.97. The latest price range within a day featured a low of $0.95 and a high of $1.06. These technical levels can help determine the stock's current trend; presently, there's a downward pressure on the stock as the last close was below both the 50-Day Moving Average ($1.35) and the 200-Day Moving Average ($1.58).
The Relative Strength Index (RSI14) shows a reading of 17. As per the usual interpretation of the RSI, a reading under 30 suggests that the stock is oversold and may be due for a rebound.
The MACD index, another momentum indicator, is positive (0.01) which generally is a bullish sign when it stays positive over long periods.
Analyst Ratings and Targets
On analyst ratings, NKLA has 1 strong buy and 6 buy ratings from various analysts. There are also 2 hold ratings, but no sell ratings. The consensus from these ratings is a "Buy". The median target price from analysts is $10, with a low target at $8 and a high target at $12.
Recently published news depicts mixed sentiment regarding Nikola Corporation. Bullish viewpoints mention the potential resurgence of the BEV business, production ramp-up of FCEVs, and potential revaluation of shares as operations scale up. Bearish sentiments, however, highlight instability in the CEO position, a distressed balance sheet, and potential dilution of existing shareholders.
This polarization of opinion suggests investors need to watch for the company’s future updates, particularly the earnings announcement on November 2, 2023.
Considering the technical and fundamental data, along with analysts' consensus and target price, it can be predicted that the stock might experience a minor rebound due to its oversold condition, potentially reaching near the support level of $0.9119 for October 24, 2023. However, for the upcoming week, volatility is expected due to its earnings release, which might push the price near its resistance level of $1.15.
In conclusion, given the company's current challenges and bearish negative indicators, Nikola Corporation's (NKLA) stock classifies as a "Hold". Despite possessing a ‘Buy’ consensus rating, the EPS and P/E performance, along with negative recent news sentiment, would advise caution. Investors should keep their eye on the forthcoming earnings report and consider any significant operational developments before making an investment decision.