Applied Genetic Technologies Corporation (AGTC): what caused a meltdown today?

An interesting stock that came up in some of our conversations today is Applied Genetic Technologies Corporation (NASDAQ:AGTC). At current price of $3.41, the shares have already lost -0.27 points (-7.34% lower) from its previous close of $3.68. Should you buy or avoid them? The stock sets an active trading volume day with a reported 98731 contracts so far this session. AGTC shares had a relatively better volume day versus average trading capacity of 54.99 million shares, but with a 14.99 million float and a -5.88% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for AGTC stock indicates that the average analyst price target is $9.6 per share. This means the stock has a potential increase of 181.52% from where the AGTC share price has been trading recently which is between $3.67 and $3.85. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $5.

The shorts are running away from Applied Genetic Technologies Corporation (AGTC) stock. The latest set of short interest data was released on 31 July 2019, and the numbers show a drop in short interest in AGTC shares. While short interest still represents only 1.07% of AGTC’s float, the number of shares shorted have fallen by -128139. The number of shares shorted fell to 32986 shares, down from 161125 shares during the preceding fortnight. With average daily trading volumes at 89242 shares, days to cover decreased to about 3.712985 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “AGTC to Present at the Wedbush PacGrow Healthcare Conference on August 14, 2019” and dated August 07, 2019.

During the recent trading session for Applied Genetic Technologies Corporation (NASDAQ:AGTC), the company witnessed their stock drop by $-0.48 over a week and tumble down $-0.42 from the price 20 days ago. When compared to their established 52-week high of $7.5, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 01/10/18. The recent low of $2.26 stood for a -54.53% since 12/21/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 2.45 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 Applied Genetic Technologies Corporation, the two-week RSI stands at 24.95. This figure suggests that AGTC stock, for now, is overbought, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current AGTC readings is similarly very revealing as it has a stochastic reading of 11.62% at this stage. This figure means that AGTC share price today is being overbought.

Technical chart claims that Applied Genetic Technologies Corporation (AGTC) would settle between $3.8/share to $3.91/share level. However, if the stock price goes below the $3.62 mark, then the market for Applied Genetic Technologies Corporation becomes much weaker. If that happens, the stock price might even plunge as low as $3.55 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 Stifel lifted target price for shares of AGTC but were stick to Buy recommendation for the stock in their opinion released on September 14. The price target has been raised from $15 to $12. Stifel analysts again handed out a Buy recommendation to Applied Genetic Technologies Corporation (NASDAQ:AGTC) stock but they lifted target price for the shares in a flash note issued to investors on May 11. The target price has been raised from $18 to $15. Analysts at Rodman & Renshaw, made their first call for the equity with a Buy recommendation, according to a research note that dated back to March 15.

AGTC equity has an average rating of 1.75, with the figure leaning towards a bullish end. 4 analysts who tracked the company were contacted by Reuters. Amongst them, 1 rated the stock as a hold while the remaining 3 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. 3 analysts rated Applied Genetic Technologies Corporation (NASDAQ:AGTC) 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, AGTC stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/S ratio is 1.83 while for the average stock in the same group, the multiple is 49.47. Applied Genetic Technologies Corporation current P/E ratio of 241.25 means it is trading at a premium against its industry’s 69.41. In the past 5 years, this ratio for the stock has been fluctuating between 230.35 and 230.35.