Big changes are happening at Luckin Coffee Inc. (NASDAQ:LK), which makes the stock worth watching today. The company is among the top gainers of the stock market today, skyrocketing 3.11% or (0.94 points) to $31.18 from its previous close of $30.24. 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 3875261 contracts so far this session. LK shares had a relatively better volume day versus average trading capacity of 4.63 million shares, but with a 6.76 million float and a 1.31% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for LK stock indicates that the average analyst price target is $28.66 per share. This means the stock has a potential decrease of -8.08% from where the LK share price has been trading recently which is between $29.06 and $30.85. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $26. Flipping the other side of the coin, an analyst who is fully bullish set a price target as high as $38.
Looking at the current readings for Luckin Coffee Inc., the two-week RSI stands at 72.91. This figure suggests that LK stock, for now, is oversold, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current LK readings is similarly very revealing as it has a stochastic reading of 79.37% at this stage. This figure means that LK share price today is being oversold.
Technical chart claims that Luckin Coffee Inc. (LK) would settle between $31.04/share to $31.84/share level. However, if the stock price goes below the $29.25 mark, then the market for Luckin Coffee Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $28.26 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.4. 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 Needham, assumed coverage of LK assigning Buy rating, according to their opinion released on June 11. Morgan Stanley, analysts launched coverage of Luckin Coffee Inc. (NASDAQ:LK) stock with a Equal-Weight recommendation, according to their flash note issued to investors on June 11. Analysts at KeyBanc Capital Markets, made their first call for the equity with a Overweight recommendation, according to a research note that dated back to June 11.
LK equity has an average rating of 2, with the figure leaning towards a bullish end. 6 analysts who tracked the company were contacted by Reuters. Amongst them, 0 rated the stock as a hold while the remaining 6 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. 6 analysts rated Luckin Coffee Inc. (NASDAQ:LK) 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, LK stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/E ratio is 0 while for the average stock in the same group, the multiple is 28.5.