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Nikola Corporation's Stock: Mixed Indicators and Potential Upside

StockInvest.us, 2 months ago

Nikola Fundamental Analysis

Nikola Corporation (NKLA) closed at $1.56 on September 27, 2023, a positive change of 4.00% or $0.06. The company has a market capitalization of approximately $1.54 billion. Despite a range in price between $1.44 (low) and $1.59 (high), Nikola Corporation's stock remains significantly below its year high of $3.98, closer to the year's low of $0.52.

While the company has approximately 985.20 million shares outstanding, it also reported an EPS of -$1.74 and a negative P/E ratio of -0.9. These figures demonstrate that Nikola is not currently profitable and investors are evaluating the stock based on its future earnings potential rather than its current profitability.

Nikola Corporation is listed on the NASDAQ exchange and has an average volume of around 92.54 million. The trading volume on the given day was approximately 70.62 million, representing a lower level of trading activity than usual.

The company's next earnings announcement is scheduled for November 1, 2023, which could potentially impact the stock's performance. The discounted cash flow (DCF) is $2.09, indicating that the stock may be undervalued at its current price.

The consensus from the provided targets suggests an average target price of $10, indicating a significant upside from the current price of $1.56. This consensus is bolstered by the majority of analysts rating the stock as a "Buy," with six recommendations for "Buy," two for "Hold," and one for "Strong Buy."

Technical Analysis

Analyzing key technical indicators, the Relative Strength Index (RSI) stands at 66, indicating that the stock is approaching overbought territory. This implies that the stock may see some downward price corrections.

Nikola The Moving Average Convergence Divergence (MACD) is at -0.129065, suggesting a bearish trend. The stock is trading below its 50-day moving average of $1.76 and 200-day moving average of $1.67. These are bearish signals, indicating that the stock is in a downtrend in the medium and long term.

Support and resistance levels are at $1.395 and $1.59 respectively. The stop-loss is set at $1.48, which investors can use to manage their risk.

News Impact

Recent news highlights a mix of negative and positive sentiment towards the company. On the one hand, the company is set to secure $40 million in funding through the sale of convertible notes, which investors perceive positively. Yet, potential risks of dilution remain a key concern.


For the next trading day, September 28, 2023, taking into account the overbought RSI, the bearish MACD, and the stock trading below moving averages, the stock could experience a slight price correction. However, the exact quantum can not be projected with this level of data.

For the upcoming week, given the high target prices, positive analyst recommendations, and the impending earnings announcement, there might be a speculative rise before the earnings announcement. However, performance will be contingent on the earnings release and the news sentiment surrounding the company.

Final Evaluation

Given the above analysis, Nikola Corporation's stock could be categorized as a "Hold." The reason for this is the mixed indicators. The stock reveals bearish technical indicators and some negative news sentiment. However, the positive target price consensus among analysts and the impending earnings announcement suggest potential upside. Investors should keep a close eye on the earnings release and news updates surrounding Nikola Corporation.

Check full Nikola forecast and analysis here.