An interesting stock that came up in some of our conversations today is The Michaels Companies, Inc. (NASDAQ:MIK). At current price of $9.12, the shares have already lost -0.62 points (-6.37% lower) from its previous close of $9.74. Should you buy or avoid them? The stock sets an active trading volume day with a reported 1715886 contracts so far this session. MIK shares had a relatively better volume day versus average trading capacity of 3.68 million shares, but with a 0.1 billion float and a 55.59% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for MIK stock indicates that the average analyst price target is $8.95 per share. This means the stock has a potential decrease of -1.86% from where the MIK share price has been trading recently which is between $9.4 and $10.265. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $4.
The shorts are climbing into The Michaels Companies, Inc. (MIK) stock. The latest set of short interest data was released on 15 August 2019, and the numbers show a rise in short interest in MIK shares. While short interest still represents only 23.92% of MIK’s float, the number of shares shorted have risen by 195690. The number of shares shorted advanced to 25058040 shares, up from 24862350 shares during the preceding fortnight. With average daily trading volumes at 2670369 shares, days to cover decreased to about 11.01388 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Edited Transcript of MIK earnings conference call or presentation 4-Sep-19 1:00pm GMT” and dated September 12, 2019.
During the recent trading session for The Michaels Companies, Inc. (NASDAQ:MIK), the company witnessed their stock rise $1.91 over a week and surge $3.61 from the price 20 days ago. When compared to their established 52-week high of $18.04, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 11/14/18. The recent low of $4.96 stood for a -49.45% since 08/15/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.11 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 Michaels Companies, Inc., the two-week RSI stands at 65.84. This figure suggests that MIK 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 MIK readings is similarly very revealing as it has a stochastic reading of 88.82% at this stage. This figure means that MIK share price today is being oversold.
Technical chart claims that The Michaels Companies, Inc. (MIK) would settle between $10.2/share to $10.67/share level. However, if the stock price goes below the $9.34 mark, then the market for The Michaels Companies, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $8.94 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 1.81. 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 lowered their recommendation on shares of MIK from Neutral to Underperform in their opinion released on July 19. Goldman, analysts launched coverage of The Michaels Companies, Inc. (NASDAQ:MIK) stock with a Neutral recommendation, according to their flash note issued to investors on July 11. Analysts at Telsey Advisory Group lowered the stock to a Market Perform call from its previous Outperform recommendation, in a research note that dated back to June 07.
MIK equity has an average rating of 2.89, with the figure leaning towards a bullish end. 9 analysts who tracked the company were contacted by Reuters. Amongst them, 5 rated the stock as a hold while the remaining 4 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 2 analysts rated The Michaels Companies, Inc. (NASDAQ:MIK) as a buy or a strong buy while 2 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, MIK stock price is currently trading at 3.96X forward 12-month Consensus EPS estimates, and its P/E ratio is 4.02 while for the average stock in the same group, the multiple is 12.64. The Michaels Companies, Inc. current P/B ratio of NA means it is trading at a premium against its industry’s 1.
The Michaels Companies, Inc. (MIK)’s current-quarter revenues are projected to climb by nearly -1.52% to hit $1.25 billion, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over -1.67% from $5.27 billion to a noteworthy $5.18 billion. At the other end of the current quarter income statement, The Michaels Companies, Inc. is expected to see its adjusted earnings surge by roughly 2.08% to hit $0.49 per share. For the fiscal year, MIK’s earnings are projected to climb by roughly 0.85% to hit $2.37 per share.