Why Fuel Tech, Inc. (FTEK) Stock Crashed Nearly -5.59% Today

Fuel Tech, Inc. (NASDAQ:FTEK) is one of the stocks that are grabbing investor focus today: sinking -5.59% or (-0.09 points) to $1.52 from its previous close of $1.61. 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 389479 contracts so far this session. FTEK shares had a relatively better volume day versus average trading capacity of 329.11 thousand shares, but with a 17.38 million float and a -38.55% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for FTEK stock indicates that the average analyst price target is $2 per share. This means the stock has a potential increase of 31.58% from where the FTEK share price has been trading recently which is between $1.5 and $2.05. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $2.

The shorts are climbing into Fuel Tech, Inc. (FTEK) stock. The latest set of short interest data was released on 30 April 2019, and the numbers show a rise in short interest in FTEK shares. While short interest still represents only 1.97% of FTEK’s float, the number of shares shorted have risen by 148783. The number of shares shorted advanced to 342296 shares, up from 193513 shares during the preceding fortnight. With average daily trading volumes at 289845 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 “Are Investors Undervaluing Fuel Tech (FTEK) Right Now?” and dated May 15, 2019.

During the recent trading session for Fuel Tech, Inc. (NASDAQ:FTEK), the company witnessed their stock drop by $-1.13 over a week and tumble down $-0.82 from the price 20 days ago. When compared to their established 52-week high of $3.06, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 04/09/19. The recent low of $0.96 stood for a -50.33% since 08/09/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0.93 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 Fuel Tech, Inc., the two-week RSI stands at 30.54. This figure suggests that FTEK 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 FTEK readings is similarly very revealing as it has a stochastic reading of 23.57% at this stage. This figure means that FTEK share price today is being overbought.

Technical chart claims that Fuel Tech, Inc. (FTEK) would settle between $1.94/share to $2.27/share level. However, if the stock price goes below the $1.39 mark, then the market for Fuel Tech, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $1.17 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.46. 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 Brean Murray, assumed coverage of FTEK assigning Buy rating, according to their opinion released on February 23. Avondale analysts bumped their rating on Fuel Tech, Inc. (NASDAQ:FTEK) stock from Mkt Perform to Mkt Outperform in a separate flash note issued to investors on June 09. Analysts at Brean Murray, made their first call for the equity with a Buy recommendation, according to a research note that dated back to October 16.

FTEK equity has an average rating of 2, with the figure leaning towards a bullish end. 1 analysts who tracked the company were contacted by Reuters. Amongst them, 0 rated the stock as a hold while the remaining 1 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. 1 analysts rated Fuel Tech, Inc. (NASDAQ:FTEK) 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, FTEK stock price is currently trading at 23X forward 12-month Consensus EPS estimates, and its P/S ratio is 0.69 while for the average stock in the same group, the multiple is 66.84. Fuel Tech, Inc. current P/E ratio of 581.23 means it is trading at a premium against its industry’s 24.61. In the past 5 years, this ratio for the stock has been fluctuating between 338.07 and 338.07.