Why Aurora Mobile Limited (JG) Stock Suddenly Retreated Today

Big changes are happening at Aurora Mobile Limited (NASDAQ:JG), which makes the stock worth watching today. The company is among the top losers of the stock market today, sinking -5.18% or (-0.28 points) to $5.13 from its previous close of $5.41. 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 136672 contracts so far this session. JG shares had a relatively better volume day versus average trading capacity of 89.94 million shares, but with a 69.33 million float and a -23.26% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for JG stock indicates that the average analyst price target is $10.67 per share. This means the stock has a potential increase of 107.99% from where the JG share price has been trading recently which is between $5.4 and $6.2955. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $8.1.

The shorts are climbing into Aurora Mobile Limited (JG) stock. The latest set of short interest data was released on 15 May 2019, and the numbers show a rise in short interest in JG shares. While short interest still represents only 0.41% of JG’s float, the number of shares shorted have risen by 432. The number of shares shorted advanced to 284138 shares, up from 283706 shares during the preceding fortnight. With average daily trading volumes at 44578 shares, days to cover increased to about 4.622878 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Aurora Mobile Limited Announces First Quarter 2019 Unaudited Financial Results” and dated June 06, 2019.

Looking at the current readings for Aurora Mobile Limited, the two-week RSI stands at 22.31. This figure suggests that JG 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 JG readings is similarly very revealing as it has a stochastic reading of 7.97% at this stage. This figure means that JG share price today is being overbought.

Technical chart claims that Aurora Mobile Limited (JG) would settle between $6/share to $6.6/share level. However, if the stock price goes below the $5.11 mark, then the market for Aurora Mobile Limited becomes much weaker. If that happens, the stock price might even plunge as low as $4.81 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -1.03. 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 Goldman lowered their recommendation on shares of JG from Buy to Neutral in their opinion released on March 06.

JG equity has an average rating of 2, with the figure leaning towards a bullish end. 3 analysts who tracked the company were contacted by Reuters. Amongst them, 1 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 Aurora Mobile Limited (NASDAQ:JG) 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, JG stock price is currently trading at 12X forward 12-month Consensus EPS estimates, and its P/S ratio is 6.02 while for the average stock in the same group, the multiple is 363.76.