The Reason For Today’s -4.94% Weakness in NN, Inc. (NNBR) Shares

NN, Inc. (NASDAQ:NNBR) is among the top losers of the stock market today, sinking -4.94% or (-0.39 points) to $7.61 from its previous close of $8. 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 140512 contracts so far this session. NNBR shares had a relatively better volume day versus average trading capacity of 343.77 thousand shares, but with a 41.59 million float and a -6.76% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for NNBR stock indicates that the average analyst price target is $16.6 per share. This means the stock has a potential increase of 118.13% from where the NNBR share price has been trading recently which is between $7.951 and $8.21. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $9.

The shorts are climbing into NN, Inc. (NNBR) stock. The latest set of short interest data was released on 31 May 2019, and the numbers show a rise in short interest in NNBR shares. While short interest still represents only 9.99% of NNBR’s float, the number of shares shorted have risen by 193097. The number of shares shorted advanced to 4348609 shares, up from 4155512 shares during the preceding fortnight. With average daily trading volumes at 255963 shares, days to cover increased to about 10.59439 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “NN, Inc. Announces Quarterly Dividend” and dated June 11, 2019.

During the recent trading session for NN, Inc. (NASDAQ:NNBR), the company witnessed their stock drop by $-0.66 over a week and tumble down $-1.6 from the price 20 days ago. When compared to their established 52-week high of $22.15, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 08/07/18. The recent low of $5.55 stood for a -65.67% 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 1.41 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 NN, Inc., the two-week RSI stands at 34.57. This figure suggests that NNBR 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 NNBR readings is similarly very revealing as it has a stochastic reading of 22.74% at this stage. This figure means that NNBR share price today is being overbought.

Technical chart claims that NN, Inc. (NNBR) would settle between $8.16/share to $8.31/share level. However, if the stock price goes below the $7.9 mark, then the market for NN, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $7.79 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.17. 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, assumed coverage of NNBR assigning Overweight rating, according to their opinion released on January 07. Stifel analysts again handed out a Hold recommendation to NN, Inc. (NASDAQ:NNBR) stock but they lifted target price for the shares in a flash note issued to investors on August 13. The target price has been raised from $26 to $23. Analysts at SunTrust, made their first call for the equity with a Buy recommendation, according to a research note that dated back to June 16.

NNBR equity has an average rating of 2.33, with the figure leaning towards a bullish end. 6 analysts who tracked the company were contacted by Reuters. Amongst them, 2 rated the stock as a hold while the remaining 4 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. 4 analysts rated NN, Inc. (NASDAQ:NNBR) 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, NNBR stock price is currently trading at 5.45X forward 12-month Consensus EPS estimates, and its P/S ratio is 0.95 while for the average stock in the same group, the multiple is 4.27.

NN, Inc. (NNBR)’s current-quarter revenues are projected to climb by nearly 11.02% to hit $218000, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over 13.31% from $770660 to a noteworthy $873200. At the other end of the current quarter income statement, NN, Inc. is expected to see its adjusted earnings surge by roughly -26.32% to hit $0.28 per share. For the fiscal year, NNBR’s earnings are projected to climb by roughly -0.85% to hit $1.16 per share.