Why Century Aluminum Company (CENX) Stock Crashed Nearly -3.21% Today

Century Aluminum Company (NASDAQ:CENX) is one of the stocks that are grabbing investor focus today: sinking -3.21% or (-0.24 points) to $7.07 from its previous close of $7.31. 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 658375 contracts so far this session. CENX shares had a relatively better volume day versus average trading capacity of 1.37 million shares, but with a 50.2 million float and a -9.31% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for CENX stock indicates that the average analyst price target is $10.83 per share. This means the stock has a potential increase of 53.18% from where the CENX share price has been trading recently which is between $7.16 and $7.385. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $9.

The shorts are climbing into Century Aluminum Company (CENX) stock. The latest set of short interest data was released on 30 April 2019, and the numbers show a rise in short interest in CENX shares. While short interest still represents only 10.83% of CENX’s float, the number of shares shorted have risen by 586594. The number of shares shorted advanced to 6024538 shares, up from 5437944 shares during the preceding fortnight. With average daily trading volumes at 1492698 shares, days to cover decreased to about 6.112762 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Heres What Hedge Funds Think About Century Aluminum Co (CENX)” and dated May 08, 2019.

Looking at the current readings for Century Aluminum Company, the two-week RSI stands at 29.3. This figure suggests that CENX 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 CENX readings is similarly very revealing as it has a stochastic reading of 8.92% at this stage. This figure means that CENX share price today is being overbought.

Technical chart claims that Century Aluminum Company (CENX) would settle between $7.41/share to $7.51/share level. However, if the stock price goes below the $7.18 mark, then the market for Century Aluminum Company becomes much weaker. If that happens, the stock price might even plunge as low as $7.06 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.59. 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 Berenberg raised their recommendation on shares of CENX from Sell to Hold in their opinion released on January 14. Morgan Stanley, analysts launched coverage of Century Aluminum Company (NASDAQ:CENX) stock with a Equal-Weight recommendation, according to their flash note issued to investors on December 21. Analysts at Berenberg, made their first call for the equity with a Sell recommendation, according to a research note that dated back to September 21.

CENX equity has an average rating of 2.71, with the figure leaning towards a bullish end. 7 analysts who tracked the company were contacted by Reuters. Amongst them, 5 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 Century Aluminum Company (NASDAQ:CENX) 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, CENX stock price is currently trading at 9.51X forward 12-month Consensus EPS estimates, and its P/S ratio is 0.33 while for the average stock in the same group, the multiple is 17.9.

Century Aluminum Company (CENX)’s current-quarter revenues are projected to climb by nearly 0.61% to hit $472850, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over 3.71% from $1.89 billion to a noteworthy $1.96 billion. At the other end of the current quarter income statement, Century Aluminum Company is expected to see its adjusted earnings surge by roughly -171.88% to hit $-0.23 per share. For the fiscal year, CENX’s earnings are projected to climb by roughly -592.86% to hit $-0.97 per share.