Why Shares of Navios Maritime Holdings Inc. (NM) Surged Today

Navios Maritime Holdings Inc. (NYSE:NM) is among the top gainers of the stock market today, skyrocketing 11.16% or (0.51 points) to $5.08 from its previous close of $4.57. 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 131171 contracts so far this session. NM shares had a relatively better volume day versus average trading capacity of 127.71 thousand shares, but with a 9.43 million float and a -4.19% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for NM stock indicates that the average analyst price target is $5 per share. This means the stock has a potential decrease of -1.57% from where the NM share price has been trading recently which is between $3.88 and $4.64. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $20. Flipping the other side of the coin, an analyst who is fully bullish set a price target as high as $20.

During the recent trading session for Navios Maritime Holdings Inc. (NYSE:NM), the company witnessed their stock rise $0.41 over a week and surge $0.16 from the price 20 days ago. When compared to their established 52-week high of $8.1, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 07/23/19. The recent low of $1.69 stood for a -37.28% since 07/03/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 2.81 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. At the moment, the median target price for NM is set at $20, a figure which is above the recent 1-year high the stock witnessed.

Looking at the current readings for Navios Maritime Holdings Inc., the two-week RSI stands at 56.11. This figure suggests that NM 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 NM readings is similarly very revealing as it has a stochastic reading of 54.96% at this stage. This figure means that NM share price today is being neutral.

Technical chart claims that Navios Maritime Holdings Inc. (NM) would settle between $4.85/share to $5.12/share level. However, if the stock price goes below the $4.09 mark, then the market for Navios Maritime Holdings Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $3.6 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.05. 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 Citigroup lowered their recommendation on shares of NM from Neutral to Sell in their opinion released on April 27. JP Morgan analysts have lowered their rating of Navios Maritime Holdings Inc. (NYSE:NM) stock from Overweight to Neutral in a separate flash note issued to investors on January 26. Analysts at Stifel lowered the stock to a Sell call from its previous Hold recommendation, in a research note that dated back to January 07.