Why Shares of MediciNova, Inc. (MNOV) Plunged Today

MediciNova, Inc. (NASDAQ:MNOV) is among the top losers of the stock market today, sinking -5.27% or (-0.51 points) to $9.07 from its previous close of $9.58. 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 161012 contracts so far this session. MNOV shares had a relatively better volume day versus average trading capacity of 118.83 thousand shares, but with a 38.72 million float and a -4.96% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for MNOV stock indicates that the average analyst price target is $20 per share. This means the stock has a potential increase of 120.51% from where the MNOV share price has been trading recently which is between $9.41 and $9.7. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $18.

The shorts are climbing into MediciNova, Inc. (MNOV) stock. The latest set of short interest data was released on 15 May 2019, and the numbers show a rise in short interest in MNOV shares. While short interest still represents only 9.62% of MNOV’s float, the number of shares shorted have risen by 120320. The number of shares shorted advanced to 3725329 shares, up from 3605009 shares during the preceding fortnight. With average daily trading volumes at 136461 shares, days to cover increased to about 20.65494 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “MediciNova Announces Kick-off Meeting to Officially Launch Phase 3 Trial of MN 166 (ibudilast) in ALS” and dated June 05, 2019.

During the recent trading session for MediciNova, Inc. (NASDAQ:MNOV), the company witnessed their stock drop by $-1.13 over a week and tumble down $-3.64 from the price 20 days ago. When compared to their established 52-week high of $13.37, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 05/16/19. The recent low of $6.68 stood for a -32.12% since 02/14/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.28 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 MediciNova, Inc., the two-week RSI stands at 33.42. This figure suggests that MNOV 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 MNOV readings is similarly very revealing as it has a stochastic reading of 13.62% at this stage. This figure means that MNOV share price today is being overbought.

Technical chart claims that MediciNova, Inc. (MNOV) would settle between $9.72/share to $9.85/share level. However, if the stock price goes below the $9.43 mark, then the market for MediciNova, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $9.27 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.52. 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 B. Riley FBR, assumed coverage of MNOV assigning Buy rating, according to their opinion released on March 25. B. Riley FBR, Inc., analysts launched coverage of MediciNova, Inc. (NASDAQ:MNOV) stock with a Buy recommendation, according to their flash note issued to investors on March 28. Analysts at Credit Suisse, made their first call for the equity with a Outperform recommendation, according to a research note that dated back to April 18.