Precision BioSciences, Inc. (DTIL): what caused a meltdown today?

An interesting stock that came up in some of our conversations today is Precision BioSciences, Inc. (NASDAQ:DTIL). At current price of $13.11, the shares have already lost -0.58 points (-4.24% lower) from its previous close of $13.69. Should you buy or avoid them? The stock sets an active trading volume day with a reported 102628 contracts so far this session. DTIL shares had a relatively better volume day versus average trading capacity of 296.53 thousand shares, but with a 36.59 million float and a 5.8% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for DTIL stock indicates that the average analyst price target is $24.33 per share. This means the stock has a potential increase of 85.58% from where the DTIL share price has been trading recently which is between $13.24 and $13.75. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $23.

The shorts are climbing into Precision BioSciences, Inc. (DTIL) stock. The latest set of short interest data was released on 30 April 2019, and the numbers show a rise in short interest in DTIL shares. While short interest still represents only 0.1% of DTIL’s float, the number of shares shorted have risen by 178976. The number of shares shorted advanced to 216942 shares, up from 37966 shares during the preceding fortnight. With average daily trading volumes at 198005 shares, days to cover increased to about 1 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Precision BioSciences Appoints Christopher R. Heery, M.D., as Chief Medical Officer” and dated May 14, 2019.

Looking at the current readings for Precision BioSciences, Inc., the two-week RSI stands at 0. This figure suggests that DTIL stock, for now, is overbought, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current DTIL readings is similarly very revealing as it has a stochastic reading of 75.38% at this stage. This figure means that DTIL share price today is being oversold.

Technical chart claims that Precision BioSciences, Inc. (DTIL) would settle between $13.88/share to $14.07/share level. However, if the stock price goes below the $13.37 mark, then the market for Precision BioSciences, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $13.05 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.4. 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 JP Morgan, assumed coverage of DTIL assigning Overweight rating, according to their opinion released on April 22. Jefferies, analysts launched coverage of Precision BioSciences, Inc. (NASDAQ:DTIL) stock with a Buy recommendation, according to their flash note issued to investors on April 22. Analysts at Goldman, made their first call for the equity with a Buy recommendation, according to a research note that dated back to April 22.

DTIL equity has an average rating of 1.75, with the figure leaning towards a bullish end. 4 analysts who tracked the company were contacted by Reuters. Amongst them, 0 rated the stock as a hold while the remaining 4 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. 4 analysts rated Precision BioSciences, Inc. (NASDAQ:DTIL) 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.