Why ShockWave Medical, Inc. (SWAV) Is Getting Lifted Today

ShockWave Medical, Inc. (NASDAQ:SWAV) is among the top gainers of the stock market today, skyrocketing 5.04% or (2.07 points) to $43.11 from its previous close of $41.04. 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 133829 contracts so far this session. SWAV shares had a relatively better volume day versus average trading capacity of 398.63 thousand shares, but with a 20.01 million float and a -11.11% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for SWAV stock indicates that the average analyst price target is $51.75 per share. This means the stock has a potential increase of 20.04% from where the SWAV share price has been trading recently which is between $40.54 and $44.671. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $32.

The shorts are climbing into ShockWave Medical, Inc. (SWAV) stock. The latest set of short interest data was released on 31 July 2019, and the numbers show a rise in short interest in SWAV shares. While short interest still represents only 13.35% of SWAV’s float, the number of shares shorted have risen by 121617. The number of shares shorted advanced to 2793692 shares, up from 2672075 shares during the preceding fortnight. With average daily trading volumes at 211822 shares, days to cover increased to about 7.831381 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “ShockWave Medical Boosts Guidance After Another Strong Quarter” and dated August 06, 2019.

Looking at the current readings for ShockWave Medical, Inc., the two-week RSI stands at 35.21. This figure suggests that SWAV 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 SWAV readings is similarly very revealing as it has a stochastic reading of 19.12% at this stage. This figure means that SWAV share price today is being overbought.

Technical chart claims that ShockWave Medical, Inc. (SWAV) would settle between $43.63/share to $46.21/share level. However, if the stock price goes below the $39.5 mark, then the market for ShockWave Medical, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $37.95 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -1.48. 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 BofA/Merrill lifted target price for shares of SWAV but were stick to Neutral recommendation for the stock in their opinion released on June 13. The price target has been raised from $44 to $64. Wells Fargo, analysts launched coverage of ShockWave Medical, Inc. (NASDAQ:SWAV) stock with a Market Perform recommendation, according to their flash note issued to investors on April 01. Analysts at Morgan Stanley, made their first call for the equity with a Equal-Weight recommendation, according to a research note that dated back to April 01.

SWAV equity has an average rating of 2.5, with the figure leaning towards a bullish end. 4 analysts who tracked the company were contacted by Reuters. Amongst them, 3 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 ShockWave Medical, Inc. (NASDAQ:SWAV) 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.