The Reason For Today’s -4.37% Weakness in PhaseBio Pharmaceuticals, Inc. (PHAS) Shares

PhaseBio Pharmaceuticals, Inc. (NASDAQ:PHAS) is among the top losers of the stock market today, sinking -4.37% or (-0.51 points) to $11.15 from its previous close of $11.66. 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 150260 contracts so far this session. PHAS shares had a relatively better volume day versus average trading capacity of 262.73 thousand shares, but with a 22.91 million float and a -15.2% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for PHAS stock indicates that the average analyst price target is $22.33 per share. This means the stock has a potential increase of 100.27% from where the PHAS share price has been trading recently which is between $11.15 and $12.22. 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 climbing into PhaseBio Pharmaceuticals, Inc. (PHAS) stock. The latest set of short interest data was released on 28 June 2019, and the numbers show a rise in short interest in PHAS shares. While short interest still represents only 1.93% of PHAS’s float, the number of shares shorted have risen by 128695. The number of shares shorted advanced to 571524 shares, up from 442829 shares during the preceding fortnight. With average daily trading volumes at 369654 shares, days to cover decreased to about 4.770939 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “PhaseBio Added to Russell 2000® and 3000® Indexes” and dated July 01, 2019.

Looking at the current readings for PhaseBio Pharmaceuticals, Inc., the two-week RSI stands at 39.38. This figure suggests that PHAS 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 PHAS readings is similarly very revealing as it has a stochastic reading of 15.68% at this stage. This figure means that PHAS share price today is being overbought.

Technical chart claims that PhaseBio Pharmaceuticals, Inc. (PHAS) would settle between $12.2/share to $12.75/share level. However, if the stock price goes below the $11.13 mark, then the market for PhaseBio Pharmaceuticals, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $10.61 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -1.11. 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 Needham, assumed coverage of PHAS assigning Buy rating, according to their opinion released on November 13. Stifel, analysts launched coverage of PhaseBio Pharmaceuticals, Inc. (NASDAQ:PHAS) stock with a Buy recommendation, according to their flash note issued to investors on November 12. Analysts at Citigroup, made their first call for the equity with a Buy recommendation, according to a research note that dated back to November 12.

PHAS equity has an average rating of 1.5, with the figure leaning towards a bullish end. 4 analysts who tracked the company were contacted by Reuters. Amongst them, 0 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 PhaseBio Pharmaceuticals, Inc. (NASDAQ:PHAS) 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, PHAS stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/S ratio is 252.68 while for the average stock in the same group, the multiple is 0.7. PhaseBio Pharmaceuticals, Inc. current P/E ratio of 2.58 means it is trading at a discount against its industry’s 10.97. In the past 5 years, this ratio for the stock has been fluctuating between 0 and 0.