The Dixie Group, Inc. (NASDAQ:DXYN) is among the top gainers of the stock market today, skyrocketing 13.86% or (0.11 points) to $0.89 from its previous close of $0.78. Does this growth mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 138040 contracts so far this session. DXYN shares had a relatively better volume day versus average trading capacity of 63.45 million shares, but with a 13.73 million float and a 36.77% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for DXYN stock indicates that the average analyst price target is $5 per share. This means the stock has a potential increase of 461.8% from where the DXYN share price has been trading recently which is between $0.64 and $0.805.
The shorts are running away from The Dixie Group, Inc. (DXYN) stock. The latest set of short interest data was released on 31 July 2019, and the numbers show a drop in short interest in DXYN shares. While short interest still represents only 0.91% of DXYN’s float, the number of shares shorted have fallen by -14207. The number of shares shorted fell to 110692 shares, down from 124899 shares during the preceding fortnight. With average daily trading volumes at 23252 shares, days to cover decreased to about 7.653594 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “The Dixie Group Announces Letter of Intent to Sell and Lease Santa Ana Facility” and dated August 09, 2019.
During the recent trading session for The Dixie Group, Inc. (NASDAQ:DXYN), the company witnessed their stock rise $0.29 over a week and surge $0.3 from the price 20 days ago. When compared to their established 52-week high of $2.15, 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 $0.34 stood for a -58.69% since 06/06/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.27 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 The Dixie Group, Inc., the two-week RSI stands at 78.29. This figure suggests that DXYN 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 DXYN readings is similarly very revealing as it has a stochastic reading of 86.22% at this stage. This figure means that DXYN share price today is being oversold.
Technical chart claims that The Dixie Group, Inc. (DXYN) would settle between $0.84/share to $0.91/share level. However, if the stock price goes below the $0.68 mark, then the market for The Dixie Group, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $0.58 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.14. 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 Nicolaus lowered their recommendation on shares of DXYN from Buy to Hold in their opinion released on May 01.
Moving on, DXYN stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/S ratio is 0.02 while for the average stock in the same group, the multiple is 1.19.