Avid Technology, Inc. (NASDAQ:AVID) is among the top gainers of the stock market today, skyrocketing 4.6% or (0.32 points) to $7.28 from its previous close of $6.96. Does this growth mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 313763 contracts so far this session. AVID shares had a relatively better volume day versus average trading capacity of 249.88 thousand shares, but with a 38.67 million float and a 11.72% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for AVID stock indicates that the average analyst price target is $5.33 per share. This means the stock has a potential decrease of -26.79% from where the AVID share price has been trading recently which is between $6.85 and $7.37. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $5.
The shorts are running away from Avid Technology, Inc. (AVID) stock. The latest set of short interest data was released on 28 February 2019, and the numbers show a drop in short interest in AVID shares. While short interest still represents only 6.54% of AVID’s float, the number of shares shorted have fallen by -35978. The number of shares shorted fell to 2527186 shares, down from 2563164 shares during the preceding fortnight. With average daily trading volumes at 165912 shares, days to cover decreased to about 30.33869 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Tech Stocks Now Even Hotter with Latest News” and dated March 20, 2019.
During the recent trading session for Avid Technology, Inc. (NASDAQ:AVID), the company witnessed their stock rise $0.77 over a week and surge $2.69 from the price 20 days ago. When compared to their established 52-week high of $7.58, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 03/20/19. The recent low of $4.3 stood for a -3.96% since 03/28/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.92 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.
Looking at the current readings for Avid Technology, Inc., the two-week RSI stands at 78.04. This figure suggests that AVID stock, for now, is oversold, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current AVID readings is similarly very revealing as it has a stochastic reading of 86.5% at this stage. This figure means that AVID share price today is being oversold.
Technical chart claims that Avid Technology, Inc. (AVID) would settle between $7.27/share to $7.58/share level. However, if the stock price goes below the $6.75 mark, then the market for Avid Technology, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $6.54 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.7. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at BWS Financial lowered their recommendation on shares of AVID from Hold to Sell in their opinion released on March 21. Dougherty & Company analysts bumped their rating on Avid Technology, Inc. (NASDAQ:AVID) stock from Sell to Neutral in a separate flash note issued to investors on January 30. Analysts at BWS Financial released an upgrade from Sell to Hold for the stock, in a research note that dated back to December 26.
AVID equity has an average rating of 3, with the figure leaning towards a bullish end. 3 analysts who tracked the company were contacted by Reuters. Amongst them, 3 rated the stock as a hold while the remaining 0 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 0 analysts rated Avid Technology, Inc. (NASDAQ:AVID) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, AVID stock price is currently trading at 8.87X forward 12-month Consensus EPS estimates, and its P/S ratio is 0.43 while for the average stock in the same group, the multiple is 0.79. Avid Technology, Inc. current P/E ratio of 109.01 means it is trading at a premium against its industry’s 15.7. In the past 5 years, this ratio for the stock has been fluctuating between 3.65 and 118.69.
Avid Technology, Inc. (AVID)’s current-quarter revenues are projected to climb by nearly 3.53% to hit $101390, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over 2.92% from $413280 to a noteworthy $425350. At the other end of the current quarter income statement, Avid Technology, Inc. is expected to see its adjusted earnings surge by roughly 200% to hit $0.07 per share. For the fiscal year, AVID’s earnings are projected to climb by roughly 148.15% to hit $0.67 per share.