The Reason For Today’s -6.11% Weakness in Qiwi plc (QIWI) Shares

Qiwi plc (NASDAQ:QIWI) is among the top losers of the stock market today, sinking -6.11% or (-1.06 points) to $16.28 from its previous close of $17.34. 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 376576 contracts so far this session. QIWI shares had a relatively better volume day versus average trading capacity of 164.1 thousand shares, but with a 11.88 million float and a 27.13% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for QIWI stock indicates that the average analyst price target is $24.39 per share. This means the stock has a potential increase of 49.82% from where the QIWI share price has been trading recently which is between $16.61 and $17.44. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $20.

The shorts are running away from Qiwi plc (QIWI) stock. The latest set of short interest data was released on 30 April 2019, and the numbers show a drop in short interest in QIWI shares. While short interest still represents only 1.09% of QIWI’s float, the number of shares shorted have fallen by -10163. The number of shares shorted fell to 129542 shares, down from 139705 shares during the preceding fortnight. With average daily trading volumes at 113790 shares, days to cover decreased to about 1.371674 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Qiwi plc (QIWI) Shares March Higher, Can It Continue?” and dated May 23, 2019.

During the recent trading session for Qiwi plc (NASDAQ:QIWI), the company witnessed their stock rise $0.22 over a week and surge $2.31 from the price 20 days ago. When compared to their established 52-week high of $18.38, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 05/24/18. The recent low of $11.61 stood for a -15.6% since 10/10/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.27 is also allocated to the stock. Since the beta is greater 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 Qiwi plc, the two-week RSI stands at 63.23. This figure suggests that QIWI 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 QIWI readings is similarly very revealing as it has a stochastic reading of 89.35% at this stage. This figure means that QIWI share price today is being oversold.

Technical chart claims that Qiwi plc (QIWI) would settle between $17.65/share to $17.96/share level. However, if the stock price goes below the $16.82 mark, then the market for Qiwi plc becomes much weaker. If that happens, the stock price might even plunge as low as $16.3 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 1.4. 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 raised their recommendation on shares of QIWI from Neutral to Overweight in their opinion released on May 16. JP Morgan analysts have lowered their rating of Qiwi plc (NASDAQ:QIWI) stock from Overweight to Neutral in a separate flash note issued to investors on February 13. Analysts at Credit Suisse lowered the stock to a Underperform call from its previous Neutral recommendation, in a research note that dated back to May 29.

QIWI equity has an average rating of 1.71, with the figure leaning towards a bullish end. 7 analysts who tracked the company were contacted by Reuters. Amongst them, 1 rated the stock as a hold while the remaining 6 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. 6 analysts rated Qiwi plc (NASDAQ:QIWI) 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, QIWI stock price is currently trading at 7.96X forward 12-month Consensus EPS estimates, and its P/S ratio is 3.07 while for the average stock in the same group, the multiple is 1116.12. Qiwi plc current P/E ratio of 21.26 means it is trading at a premium against its industry’s 20.13. In the past 5 years, this ratio for the stock has been fluctuating between 12.64 and 51.59.