Inovalon Holdings, Inc. (NASDAQ:INOV) is among the top gainers of the stock market today, skyrocketing 4.52% or (0.6 points) to $13.88 from its previous close of $13.28. 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 212494 contracts so far this session. INOV shares had a relatively better volume day versus average trading capacity of 555.65 thousand shares, but with a 64.51 million float and a -5.68% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for INOV stock indicates that the average analyst price target is $14.33 per share. This means the stock has a potential increase of 3.24% from where the INOV share price has been trading recently which is between $13.01 and $13.38. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $10.
The shorts are running away from Inovalon Holdings, Inc. (INOV) stock. The latest set of short interest data was released on 30 April 2019, and the numbers show a drop in short interest in INOV shares. While short interest still represents only 17.66% of INOV’s float, the number of shares shorted have fallen by -228127. The number of shares shorted fell to 11165531 shares, down from 11393658 shares during the preceding fortnight. With average daily trading volumes at 607456 shares, days to cover decreased to about 27.95057 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Is Inovalon Holdings, Inc.’s (NASDAQ:INOV) CEO Overpaid Relative To Its Peers?” and dated May 15, 2019.
During the recent trading session for Inovalon Holdings, Inc. (NASDAQ:INOV), the company witnessed their stock rise $0.06 over a week and surge $1.76 from the price 20 days ago. When compared to their established 52-week high of $15.57, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 02/15/19. The recent low of $9.19 stood for a -10.85% since 11/05/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0.66 is also allocated to the stock. Since the beta is less 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 Inovalon Holdings, Inc., the two-week RSI stands at 58.17. This figure suggests that INOV stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current INOV readings is similarly very revealing as it has a stochastic reading of 26.16% at this stage. This figure means that INOV share price today is being overbought.
Technical chart claims that Inovalon Holdings, Inc. (INOV) would settle between $13.44/share to $13.59/share level. However, if the stock price goes below the $13.07 mark, then the market for Inovalon Holdings, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $12.85 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.37. 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 Morgan Stanley raised their recommendation on shares of INOV from Underweight to Equal-Weight in their opinion released on December 20. Morgan Stanley analysts have lowered their rating of Inovalon Holdings, Inc. (NASDAQ:INOV) stock from Equal-Weight to Underweight in a separate flash note issued to investors on March 14. Analysts at Morgan Stanley released an upgrade from Underweight to Equal-Weight for the stock, in a research note that dated back to September 12.
INOV equity has an average rating of 3.12, with the figure leaning towards a bullish end. 8 analysts who tracked the company were contacted by Reuters. Amongst them, 5 rated the stock as a hold while the remaining 3 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 1 analysts rated Inovalon Holdings, Inc. (NASDAQ:INOV) as a buy or a strong buy while 2 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, INOV stock price is currently trading at 25.25X forward 12-month Consensus EPS estimates, and its P/S ratio is 5.9 while for the average stock in the same group, the multiple is 2.58. Inovalon Holdings, Inc. current P/E ratio of 144.32 means it is trading at a premium against its industry’s 20.65. In the past 5 years, this ratio for the stock has been fluctuating between 38.18 and 57.71.
Inovalon Holdings, Inc. (INOV)’s current-quarter revenues are projected to climb by nearly 2.16% to hit $156100, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over 21.6% from $527680 to a noteworthy $641680. At the other end of the current quarter income statement, Inovalon Holdings, Inc. is expected to see its adjusted earnings surge by roughly -30.77% to hit $0.09 per share. For the fiscal year, INOV’s earnings are projected to climb by roughly 62.96% to hit $0.44 per share.