Why Aeterna Zentaris Inc. (AEZS) Shares Are Crashing -3.94 Percent Today

Aeterna Zentaris Inc. (NASDAQ:AEZS) is one of the worst performers on the stock market today. At current price of $1.95, the shares have already lost -0.08 points (-3.94% lower) from its previous close of $2.03. Should you buy or avoid them? The stock sets an active trading volume day with a reported 106780 contracts so far this session. AEZS shares had a relatively better volume day versus average trading capacity of 102.03 thousand shares, but with a 16.54 million float and a -3.33% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for AEZS stock indicates that the average analyst price target is $5.5 per share. This means the stock has a potential increase of 182.05% from where the AEZS share price has been trading recently which is between $2.01 and $2.1. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $5.5.

The shorts are climbing into Aeterna Zentaris Inc. (AEZS) stock. The latest set of short interest data was released on 15 August 2019, and the numbers show a rise in short interest in AEZS shares. While short interest still represents only 2.43% of AEZS’s float, the number of shares shorted have risen by 4046. The number of shares shorted advanced to 405773 shares, up from 401727 shares during the preceding fortnight. With average daily trading volumes at 88404 shares, days to cover decreased to about 5.797596 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Aeterna Zentaris Announces Director Change” and dated August 20, 2019.

During the recent trading session for Aeterna Zentaris Inc. (NASDAQ:AEZS), the company witnessed their stock drop by $-0.17 over a week and tumble down $-0.56 from the price 20 days ago. When compared to their established 52-week high of $5.57, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 04/05/19. The recent low of $1.29 stood for a -64.99% since 10/30/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.2 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 Aeterna Zentaris Inc., the two-week RSI stands at 32.81. This figure suggests that AEZS 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 AEZS readings is similarly very revealing as it has a stochastic reading of 6.84% at this stage. This figure means that AEZS share price today is being overbought.

Technical chart claims that Aeterna Zentaris Inc. (AEZS) would settle between $2.08/share to $2.14/share level. However, if the stock price goes below the $1.99 mark, then the market for Aeterna Zentaris Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $1.96 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.06. 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 AEZS but were stick to Buy recommendation for the stock in their opinion released on July 19. The price target has been raised from $2 to $4. H.C. Wainwright analysts again handed out a Buy recommendation to Aeterna Zentaris Inc. (NASDAQ:AEZS) 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 $7.50 to $3. Analysts at Maxim Group are sticking to their Buy stance. However, on May 01, they lifted price target for these shares to $2 from $11.

AEZS 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 Aeterna Zentaris Inc. (NASDAQ:AEZS) 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, AEZS stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/S ratio is 18.02 while for the average stock in the same group, the multiple is 42.65.