Why Gridsum Holding Inc. (GSUM) Stock Plunged Today

Gridsum Holding Inc. (NASDAQ:GSUM) is one of the worst performers on the stock market today. At current price of $2.98, the shares have already lost -0.27 points (-8.31% lower) from its previous close of $3.25. Should you buy or avoid them? The stock sets an active trading volume day with a reported 115392 contracts so far this session. GSUM shares had a relatively better volume day versus average trading capacity of 74.03 million shares, but with a 28.42 million float and a -3.56% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for GSUM stock indicates that the average analyst price target is $19.83 per share. This means the stock has a potential increase of 565.44% from where the GSUM share price has been trading recently which is between $3.25 and $3.42.

The shorts are running away from Gridsum Holding Inc. (GSUM) stock. The latest set of short interest data was released on 15 May 2019, and the numbers show a drop in short interest in GSUM shares. While short interest still represents only 2.98% of GSUM’s float, the number of shares shorted have fallen by -87714. The number of shares shorted fell to 759975 shares, down from 847689 shares during the preceding fortnight. With average daily trading volumes at 35240 shares, days to cover increased to about 14.00375 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Gridsum Enters into Strategic Alliance with ShineWing to Intelligentize Professional Services” and dated April 29, 2019.

During the recent trading session for Gridsum Holding Inc. (NASDAQ:GSUM), the company witnessed their stock drop by $-0.44 over a week and tumble down $-0.61 from the price 20 days ago. When compared to their established 52-week high of $7, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 07/03/18. The recent low of $1.29 stood for a -57.43% since 01/10/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0 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 Gridsum Holding Inc., the two-week RSI stands at 34.74. This figure suggests that GSUM 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 GSUM readings is similarly very revealing as it has a stochastic reading of 37.44% at this stage. This figure means that GSUM share price today is being neutral.

Technical chart claims that Gridsum Holding Inc. (GSUM) would settle between $3.36/share to $3.48/share level. However, if the stock price goes below the $3.19 mark, then the market for Gridsum Holding Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $3.14 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.14. 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.

Moving on, GSUM stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/S ratio is 4.25 while for the average stock in the same group, the multiple is 5.2.