Why Myriad Genetics, Inc. (MYGN) Stock is Downtrending Strong (-4.15%) Today

What just happened? Myriad Genetics, Inc. (NASDAQ:MYGN) stock value has plummeted by nearly -4.15% or (-1.1 points) to $25.43 from its previous close of $26.53. 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 231808 contracts so far this session. MYGN shares had a relatively better volume day versus average trading capacity of 1 million shares, but with a 72.51 million float and a -5.08% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for MYGN stock indicates that the average analyst price target is $33.73 per share. This means the stock has a potential increase of 32.64% from where the MYGN share price has been trading recently which is between $26.48 and $26.85. 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 running away from Myriad Genetics, Inc. (MYGN) stock. The latest set of short interest data was released on 28 June 2019, and the numbers show a drop in short interest in MYGN shares. While short interest still represents only 19.68% of MYGN’s float, the number of shares shorted have fallen by -386066. The number of shares shorted fell to 13884535 shares, down from 14270601 shares during the preceding fortnight. With average daily trading volumes at 1502546 shares, days to cover decreased to about 17.17851 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Myriad Genetics Stock Is Falling as Enthusiasm Wanes” and dated July 09, 2019.

During the recent trading session for Myriad Genetics, Inc. (NASDAQ:MYGN), the company witnessed their stock drop by $-2.44 over a week and surge $1.08 from the price 20 days ago. When compared to their established 52-week high of $50.44, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 04/09/18. The recent low of $22.07 stood for a -49.58% since 06/26/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0.79 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 Myriad Genetics, Inc., the two-week RSI stands at 46.21. This figure suggests that MYGN 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 MYGN readings is similarly very revealing as it has a stochastic reading of 66.48% at this stage. This figure means that MYGN share price today is being neutral.

Technical chart claims that Myriad Genetics, Inc. (MYGN) would settle between $26.76/share to $26.99/share level. However, if the stock price goes below the $26.39 mark, then the market for Myriad Genetics, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $26.25 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.95. 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 Cowen lowered their recommendation on shares of MYGN from Outperform to Market Perform in their opinion released on July 09. Needham analysts again handed out a Strong Buy recommendation to Myriad Genetics, Inc. (NASDAQ:MYGN) stock but they lifted target price for the shares in a flash note issued to investors on March 12. The target price has been raised from $37 to $41. Analysts at Needham, made their first call for the equity with a Strong Buy recommendation, according to a research note that dated back to January 03.

MYGN equity has an average rating of 2.82, with the figure leaning towards a bullish end. 11 analysts who tracked the company were contacted by Reuters. Amongst them, 5 rated the stock as a hold while the remaining 6 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 3 analysts rated Myriad Genetics, Inc. (NASDAQ:MYGN) as a buy or a strong buy while 3 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, MYGN stock price is currently trading at 14.07X forward 12-month Consensus EPS estimates, and its P/S ratio is 2.34 while for the average stock in the same group, the multiple is 21.71. Myriad Genetics, Inc. current P/E ratio of 146.58 means it is trading at a premium against its industry’s 105.1. In the past 5 years, this ratio for the stock has been fluctuating between 17.27 and 81.55.