It’s understandable why traders are mauling Key Energy Services, Inc. (KEG)

Key Energy Services, Inc. (NYSE:KEG) is one of the stocks that are grabbing investor focus today: sinking -5.09% or (-0.17 points) to $3.17 from its previous close of $3.34. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 126096 contracts so far this session. KEG shares had a relatively better volume day versus average trading capacity of 398.17 thousand shares, but with a 8.81 million float and a -5.65% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for KEG stock indicates that the average analyst price target is $3.85 per share. This means the stock has a potential increase of 21.45% from where the KEG share price has been trading recently which is between $2.74 and $3.38. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $3.

The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Edited Transcript of KEG.N earnings conference call or presentation 9-May-19 3:00pm GMT” and dated May 14, 2019.

During the recent trading session for Key Energy Services, Inc. (NYSE:KEG), the company witnessed their stock drop by $-0.45 over a week and tumble down $-0.61 from the price 20 days ago. When compared to their established 52-week high of $18.4, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 05/22/18. The recent low of $1.59 stood for a -82.77% since 01/29/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0 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 Key Energy Services, Inc., the two-week RSI stands at 40.18. This figure suggests that KEG 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 KEG readings is similarly very revealing as it has a stochastic reading of 19.78% at this stage. This figure means that KEG share price today is being overbought.

Technical chart claims that Key Energy Services, Inc. (KEG) would settle between $3.57/share to $3.79/share level. However, if the stock price goes below the $2.93 mark, then the market for Key Energy Services, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $2.51 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.25. 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 CapitalOne lowered their recommendation on shares of KEG from Overweight to Equal Weight in their opinion released on January 16. Piper Jaffray analysts have lowered their rating of Key Energy Services, Inc. (NYSE:KEG) stock from Overweight to Neutral in a separate flash note issued to investors on November 20. Analysts at Seaport Global Securities released an upgrade from Neutral to Buy for the stock, in a research note that dated back to December 20.

KEG equity has an average rating of 2.6, with the figure leaning towards a bullish end. 5 analysts who tracked the company were contacted by Reuters. Amongst them, 3 rated the stock as a hold while the remaining 2 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. 2 analysts rated Key Energy Services, Inc. (NYSE:KEG) 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, KEG stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/S ratio is 0.13 while for the average stock in the same group, the multiple is 6.36.

Key Energy Services, Inc. (KEG)’s current-quarter revenues are projected to climb by nearly -9.49% to hit $130700, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over 1.65% from $521700 to a noteworthy $530300. At the other end of the current quarter income statement, Key Energy Services, Inc. is expected to see its adjusted earnings surge by roughly 3.49% to hit $-0.83 per share. For the fiscal year, KEG’s earnings are projected to climb by roughly 30.68% to hit $-3.14 per share.