Sign InRiot Blockchain's Stock Rises 10.34% Amidst High Liquidity and Stable Short-Term Trend
Summary
Technical analysis of Riot Blockchain, Inc.'s stock on October 24, 2023, suggests a rise in price with high liquidity, stable short-term price trend, and a bearish MACD, while fundamental analysis highlights concerns about profitability but positive sentiment towards the company due to the potential benefits from the cryptocurrency market. Stock performance prediction indicates potential trading range of $10 - $11 with upward momentum and an evaluation recommends a cautious 'Hold' rating due to inherent risks but recognizes growth potential. (Date of analysis: October 24, 2023)
Technical Analysis
Riot Blockchain, Inc.'s (RIOT) stock had a final closing price of $10.67 on October 24, 2023, indicating a rise of 10.34% from the previous trading session. The trading volume for the day was 28.28 million shares, higher than its average trading volume of 18.70 million shares, suggesting high liquidity.
The stock's 14-day Relative Strength Index (RSI) stands at 65, indicating that the stock is neither in the oversold nor overbought territory. Its 50-day moving average of $10.28 is slightly lower than the 200-day moving average of $10.54, suggesting a stable short-term price trend. Its MACD (3-month) stands at -0.21, hinting at a bearish trend.
The Stop-loss for the stock is at $10.28, while the support and resistance levels are at $9.88 and $10.93, respectively. While the Average True Range (ATR) of 8.15 suggests high volatility, the stock's broad price range between a yearly high of $20.65 and a yearly low of $3.25 affirms this.
Fundamental Analysis
Riot Blockchain, Inc. has a market capitalization of $2.12 billion, indicating its size in terms of asset value. However, the firm's earning capability, as indicated by an EPS (Earnings Per Share) of -$1.6 and a negative P/E (Price-to-Earnings) ratio of -6.66, raises concerns about its profitability.
The company has about 198.68 million outstanding shares, indicating the total number of its shares that are held by all shareholders. A consensus target price of $10.50, a bit below the recent closing price, combined with the consensus advice (Buy) from 4 analysts suggests a generally positive outlook for the stock.
The news of Bitcoin miners (including Riot Blockchain) skyrocketing in response to increased institutional demand for Bitcoin security demonstrates Riot Blockchain's potential to derive benefits from the cryptocurrency market. Also noteworthy is that despite market dips, Riot Blockchain stocks have shown resilience.
These factors, along with a discounted cash flow (DCF) value of $12.29, which far exceeds the recent close, indicate some positive lentiments towards the company, but considerable caution must be exercised due to the inherent uncertainty associated with cryptocurrencies.
Stock Performance Prediction
For the next trading day (October 25, 2023), considering the high level of volatility indicated by the ATR, alongside the recent bullish trend and momentum from positive news, the stock is expected to trade around the $10 - $11 range.
Over the week, given the current market circumstances plus the recent rise in stock price, it's possible to see a similar upward momentum, assuming Bitcoin continues to maintain or increase its value, with the price potentially reaching the resistance level of $10.93.
However, further fluctuations are expected because of the high volatility associated with cryptocurrency-related activities. The EPS and PE ratios also suggest potential financial instability that investors should keep in mind.
Evaluation and Recommendations
Riot Blockchain, Inc.'s stock may currently be rated as a 'Hold.' While there's potential upside given its position in the cryptocurrency market and the bullish momentum currently driving its price, investors should be cautious due to the inherent risks involved with the cryptocurrency market and the company's negative profitability ratios. However, its growth potential, indicated by the analyst consensus of 'Buy,' should not be disregarded and may be of interest to high-risk investors. As always, a diversified portfolio is recommended to mitigate any potential risk.
