Spok Holdings, Inc. (SPOK): what caused a melt-up today?

An interesting stock that came up in some of our conversations today is Spok Holdings, Inc. (NASDAQ:SPOK). At current price of $12.35, the shares have already added 0.71 points (6.1% higher) from its previous close of $11.64. Should you buy or avoid them? The stock sets an active trading volume day with a reported 169741 contracts so far this session. SPOK shares had a relatively better volume day versus average trading capacity of 144.37 thousand shares, but with a 18.83 million float and a -4.9% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for SPOK stock indicates that the average analyst price target is $7 per share. This means the stock has a potential decrease of -43.32% from where the SPOK share price has been trading recently which is between $11.475 and $11.76.

The shorts are running away from Spok Holdings, Inc. (SPOK) stock. The latest set of short interest data was released on 31 July 2019, and the numbers show a drop in short interest in SPOK shares. While short interest still represents only 3.25% of SPOK’s float, the number of shares shorted have fallen by -105624. The number of shares shorted fell to 507283 shares, down from 612907 shares during the preceding fortnight. With average daily trading volumes at 117819 shares, days to cover decreased to about 10.57101 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Spok Holdings, Inc. (SPOK) Q2 2019 Earnings Call Transcript” and dated August 02, 2019.

During the recent trading session for Spok Holdings, Inc. (NASDAQ:SPOK), the company witnessed their stock rise $0.1 over a week and tumble down $-2.61 from the price 20 days ago. When compared to their established 52-week high of $17.25, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 05/20/19. The recent low of $11.43 stood for a -28.41% since 08/13/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0.39 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 Spok Holdings, Inc., the two-week RSI stands at 36.48. This figure suggests that SPOK 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 SPOK readings is similarly very revealing as it has a stochastic reading of 9.99% at this stage. This figure means that SPOK share price today is being overbought.

Technical chart claims that Spok Holdings, Inc. (SPOK) would settle between $11.78/share to $11.91/share level. However, if the stock price goes below the $11.49 mark, then the market for Spok Holdings, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $11.34 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.16. 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.

Moving on, SPOK stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/S ratio is 1.65 while for the average stock in the same group, the multiple is 1.45.