Perficient, Inc. (PRFT): what caused a meltdown today?

An interesting stock that came up in some of our conversations today is Perficient, Inc. (NASDAQ:PRFT). At current price of $37.38, the shares have already lost -1.97 points (-4.99% lower) from its previous close of $39.35. Should you buy or avoid them? The stock sets an active trading volume day with a reported 242101 contracts so far this session. PRFT shares had a relatively better volume day versus average trading capacity of 316.67 thousand shares, but with a 31.83 million float and a 6.81% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for PRFT stock indicates that the average analyst price target is $43.5 per share. This means the stock has a potential increase of 16.37% from where the PRFT share price has been trading recently which is between $37.76 and $39.74. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $42.

The shorts are running away from Perficient, Inc. (PRFT) stock. The latest set of short interest data was released on 15 August 2019, and the numbers show a drop in short interest in PRFT shares. While short interest still represents only 6.7% of PRFT’s float, the number of shares shorted have fallen by -8295. The number of shares shorted fell to 2131416 shares, down from 2139711 shares during the preceding fortnight. With average daily trading volumes at 416031 shares, days to cover decreased to about 9.11124 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “The Zacks Analyst Blog Highlights: Perficient, Chegg, CyberArk, OSI and Itron” and dated September 06, 2019.

During the recent trading session for Perficient, Inc. (NASDAQ:PRFT), the company witnessed their stock rise $0.58 over a week and surge $2.77 from the price 20 days ago. When compared to their established 52-week high of $39.74, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 09/09/19. The recent low of $20.92 stood for a -5.93% since 12/24/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0.81 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 Perficient, Inc., the two-week RSI stands at 54.53. This figure suggests that PRFT 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 PRFT readings is similarly very revealing as it has a stochastic reading of 70.56% at this stage. This figure means that PRFT share price today is being oversold.

Technical chart claims that Perficient, Inc. (PRFT) would settle between $40.14/share to $40.93/share level. However, if the stock price goes below the $38.16 mark, then the market for Perficient, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $36.97 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.73. 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 William Blair, assumed coverage of PRFT assigning Outperform rating, according to their opinion released on September 09. Barrington Research analysts again handed out a Outperform recommendation to Perficient, Inc. (NASDAQ:PRFT) stock but they lifted target price for the shares in a flash note issued to investors on August 02. The target price has been raised from $37 to $44. Analysts at Nomura, made their first call for the equity with a Buy recommendation, according to a research note that dated back to June 21.

PRFT equity has an average rating of 1, with the figure leaning towards a bullish end. 5 analysts who tracked the company were contacted by Reuters. Amongst them, 0 rated the stock as a hold while the remaining 5 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. 5 analysts rated Perficient, Inc. (NASDAQ:PRFT) 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, PRFT stock price is currently trading at 17.96X forward 12-month Consensus EPS estimates, and its P/E ratio is 21.5 while for the average stock in the same group, the multiple is 3.41. Perficient, Inc. current P/B ratio of 3.6 means it is trading at a premium against its industry’s 2.03.

Perficient, Inc. (PRFT)’s current-quarter revenues are projected to climb by nearly 15.21% to hit $142790, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over 13.04% from $498380 to a noteworthy $563380. At the other end of the current quarter income statement, Perficient, Inc. is expected to see its adjusted earnings surge by roughly 24.39% to hit $0.51 per share. For the fiscal year, PRFT’s earnings are projected to climb by roughly 26.42% to hit $2.01 per share.