NKLA Stock: Fundamental and Technical Factors Point to Potential Price Movement

Fundamental Analysis

Nikola Corporation (Ticker: NKLA), a player in the electric vehicle (EV) market, traded at a last close price of $1.55 on September 19, 2023, experiencing a drop of $0.04 (-2.52%) from its previous position. The company's market capitalization stands at $1.33 billion. On the day, the stock marked a low of $1.36 and a high of $1.65, with a volume of 147.24 million exceeding its average volume of 89.77 million.

The company's EPS (Earnings Per Share) stands at -$2, and its current PE (Price to Earnings) ratio is -0.77, pointing to negative earnings that may elicit caution for potential investors eying its profit-making ability. The firm's year-high was $4.7, noting a strong potential for growth given the right conditions. However, the stock also had a year-low at $0.52, which proposes significant risk.

A few monumental occurrences have marked NKLA's recent past. One significant development was the installment of Mary Chan as the new COO, which spurred a considerable surge in the stock’s price – increasing by 26% shortly after the announcement. Noteworthy was that Mary Chan formerly served as president of the Global Connected Consumer group at General Motors, hence bringing a wealth of relevant experience to the company.

Despite the company having faced a turbulent summer, analysts suggest that the company has weathered well and remains on track with its turnaround regardless of halting production on the Tre BEV. This halted production and Nikola's recent appointment of Mary Chan suggest that the company is focusing their resources towards a progressive future in the EV market.

Technical Analysis

The RSI14 (Relative Strength Index) of NKLA is currently at 60, which signifies moderately bullish sentiment. However, with the 50-day and 200-day Moving Averages standing at $1.81 and $1.71 respectively, the current price of $1.55 is below these crucial support levels. The MACD (Moving Average Convergence Divergence), a trend-following momentum indicator, shows a negative 3-month value at -0.353918, indicating that NKLA is on a downward trend.

Furthermore, NKLA's support and resistance levels are $1.44 and $1.59 respectively. The proximity of the last close price to the resistance level suggests potential upside if the stock breaks this level. However, the ATR (Average True Range) is at 14.40, implying high volatility.

Price Targets and Analyst Ratings

The consensus among analysts is a "Buy" rating for Nikola Corporation with one strong buy, six buy, and two hold ratings. The target ranges suggest a bullish outlook with a low of $8, median and consensus at $10, and a high of $12.

In terms of the DCF (Discounted Cash Flow) analysis, Nikola Corporation's value stands at $2.08. If adhered to, this analysis suggests that the stock is currently undervalued.

Stock Prediction

Given the fundamental and technical factors, Nikola stock could show some positive price movement in the upcoming trading day (September 20, 2023) and the week ahead, potentially attempting to reach the resistance level at $1.59. However, the high volatility noted in the ATR requires investors to approach this stock carefully.

Final Evaluation

After considering all these factors, Nikola Corporation's stock can be categorized as a "Hold." Despite the upcoming changes in management and the recent turbulence, the negative EPS and the potential volatility associated with high ATR make NKLA a risky investment. Yet, the positive consensus from analysts, coupled with the company's strategic moves, suggests the prospect for future growth. Therefore, for risk-tolerant investors who believe in the company's growth potentials, NKLA may present itself as a potential buying opportunity. However, conservative investors may opt to wait for clearer signs of growth.