Why Workhorse Group Inc. (WKHS) Stock is Down Almost -4.76% Today

What just happened? Workhorse Group Inc. (NASDAQ:WKHS) stock value has plummeted by nearly -4.76% or (-0.19 points) to $3.7 from its previous close of $3.89. 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 830024 contracts so far this session. WKHS shares had a relatively better volume day versus average trading capacity of 4.93 million shares, but with a 51.34 million float and a 36.97% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for WKHS stock indicates that the average analyst price target is $2 per share. This means the stock has a potential decrease of -45.95% from where the WKHS share price has been trading recently which is between $3.4 and $4.14. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $2.

The shorts are climbing into Workhorse Group Inc. (WKHS) stock. The latest set of short interest data was released on 28 June 2019, and the numbers show a rise in short interest in WKHS shares. While short interest still represents only 8.54% of WKHS’s float, the number of shares shorted have risen by 570180. The number of shares shorted advanced to 4384843 shares, up from 3814663 shares during the preceding fortnight. With average daily trading volumes at 3385484 shares, days to cover increased to about 1 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Why Workhorse Group Shares Soared Monday” and dated July 15, 2019.

During the recent trading session for Workhorse Group Inc. (NASDAQ:WKHS), the company witnessed their stock rise $0.71 over a week and surge $1.29 from the price 20 days ago. When compared to their established 52-week high of $4.14, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 07/15/19. The recent low of $0.37 stood for a -10.51% since 12/18/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.24 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 Workhorse Group Inc., the two-week RSI stands at 71.51. This figure suggests that WKHS stock, for now, is oversold, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current WKHS readings is similarly very revealing as it has a stochastic reading of 81.6% at this stage. This figure means that WKHS share price today is being oversold.

Technical chart claims that Workhorse Group Inc. (WKHS) would settle between $4.22/share to $4.55/share level. However, if the stock price goes below the $3.48 mark, then the market for Workhorse Group Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $3.07 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.47. 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 Maxim Group lifted target price for shares of WKHS but were stick to Buy recommendation for the stock in their opinion released on January 24. The price target has been raised from $5 to $6. Maxim Group analysts again handed out a Buy recommendation to Workhorse Group Inc. (NASDAQ:WKHS) stock but they lifted target price for the shares in a flash note issued to investors on May 10. The target price has been raised from $7 to $5. Analysts at Maxim Group are sticking to their Buy stance. However, on March 14, they lifted price target for these shares to $7 from $11.

WKHS equity has an average rating of 2, with the figure leaning towards a bullish end. 1 analysts who tracked the company were contacted by Reuters. Amongst them, 0 rated the stock as a hold while the remaining 1 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. 1 analysts rated Workhorse Group Inc. (NASDAQ:WKHS) 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, WKHS stock price is currently trading at 77.8X forward 12-month Consensus EPS estimates, and its P/S ratio is 448.97 while for the average stock in the same group, the multiple is 0.98.