Why II-VI Incorporated (IIVI) shares are suddenly plunging -3.48% today

What just happened? II-VI Incorporated (NASDAQ:IIVI) stock value has plummeted by nearly -3.48% or (-1.2 points) to $33.3 from its previous close of $34.5. 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 737401 contracts so far this session. IIVI shares had a relatively better volume day versus average trading capacity of 723.08 thousand shares, but with a 58.66 million float and a -7.63% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for IIVI stock indicates that the average analyst price target is $49 per share. This means the stock has a potential increase of 47.15% from where the IIVI share price has been trading recently which is between $34.13 and $35.59. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $41.

The shorts are running away from II-VI Incorporated (IIVI) stock. The latest set of short interest data was released on 30 April 2019, and the numbers show a drop in short interest in IIVI shares. While short interest still represents only 12.21% of IIVI’s float, the number of shares shorted have fallen by -97315. The number of shares shorted fell to 7063910 shares, down from 7161225 shares during the preceding fortnight. With average daily trading volumes at 598065 shares, days to cover decreased to about 13.19122 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Does II-VI Incorporated’s (NASDAQ:IIVI) Debt Level Pose A Problem?” and dated May 15, 2019.

During the recent trading session for II-VI Incorporated (NASDAQ:IIVI), the company witnessed their stock drop by $-3.83 over a week and tumble down $-7.65 from the price 20 days ago. When compared to their established 52-week high of $50.75, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 08/30/18. The recent low of $29.31 stood for a -34.38% since 12/24/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0.89 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 II-VI Incorporated, the two-week RSI stands at 33.43. This figure suggests that IIVI 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 IIVI readings is similarly very revealing as it has a stochastic reading of 15.12% at this stage. This figure means that IIVI share price today is being overbought.

Technical chart claims that II-VI Incorporated (IIVI) would settle between $35.35/share to $36.2/share level. However, if the stock price goes below the $33.89 mark, then the market for II-VI Incorporated becomes much weaker. If that happens, the stock price might even plunge as low as $33.28 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -1.41. 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 The Benchmark Company lifted target price for shares of IIVI but were stick to Buy recommendation for the stock in their opinion released on May 02. The price target has been raised from $55 to $57. Needham analysts again handed out a Buy recommendation to II-VI Incorporated (NASDAQ:IIVI) stock but they lifted target price for the shares in a flash note issued to investors on May 02. The target price has been raised from $48 to $46. Analysts at Northland Capital released an upgrade from Market Perform to Outperform for the stock, in a research note that dated back to December 31.

IIVI equity has an average rating of 1.8, with the figure leaning towards a bullish end. 10 analysts who tracked the company were contacted by Reuters. Amongst them, 2 rated the stock as a hold while the remaining 8 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. 8 analysts rated II-VI Incorporated (NASDAQ:IIVI) 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, IIVI stock price is currently trading at 11.42X forward 12-month Consensus EPS estimates, and its P/S ratio is 2.67 while for the average stock in the same group, the multiple is 2.31. II-VI Incorporated current P/E ratio of 28.04 means it is trading at a discount against its industry’s 37.7. In the past 5 years, this ratio for the stock has been fluctuating between 18.01 and 24.03.

II-VI Incorporated (IIVI)’s current-quarter revenues are projected to climb by nearly 8.77% to hit $349240, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over 16.26% from $1.16 billion to a noteworthy $1.35 billion. At the other end of the current quarter income statement, II-VI Incorporated is expected to see its adjusted earnings surge by roughly 28.85% to hit $0.67 per share. For the fiscal year, IIVI’s earnings are projected to climb by roughly 25.62% to hit $2.55 per share.