DouYu International Holdings Limited (NASDAQ:DOYU) is among the top losers of the stock market today, sinking -4.06% or (-0.31 points) to $7.2 from its previous close of $7.51. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 1074684 contracts so far this session. DOYU shares had a relatively better volume day versus average trading capacity of 1.14 million shares, but with a 0 million float and a -1.05% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for DOYU stock indicates that the average analyst price target is $75.3 per share. This means the stock has a potential increase of 945.83% from where the DOYU share price has been trading recently which is between $7.17 and $7.64. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $¥56.36. Flipping the other side of the coin, an analyst who is fully bullish set a price target as high as $¥84.39.
Looking at the current readings for DouYu International Holdings Limited, the two-week RSI stands at 40.05. This figure suggests that DOYU 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 DOYU readings is similarly very revealing as it has a stochastic reading of 32.47% at this stage. This figure means that DOYU share price today is being neutral.
Technical chart claims that DouYu International Holdings Limited (DOYU) would settle between $7.71/share to $7.91/share level. However, if the stock price goes below the $7.24 mark, then the market for DouYu International Holdings Limited becomes much weaker. If that happens, the stock price might even plunge as low as $6.97 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.12. 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 JP Morgan lowered their recommendation on shares of DOYU from Overweight to Neutral in their opinion released on December 03. Morgan Stanley analysts have lowered their rating of DouYu International Holdings Limited (NASDAQ:DOYU) stock from Overweight to Equal-Weight in a separate flash note issued to investors on December 02. Analysts at HSBC Securities, made their first call for the equity with a Hold recommendation, according to a research note that dated back to September 16.
DOYU equity has an average rating of 1.75, with the figure leaning towards a bullish end. 4 analysts who tracked the company were contacted by Reuters. Amongst them, 1 rated the stock as a hold while the remaining 3 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. 3 analysts rated DouYu International Holdings Limited (NASDAQ:DOYU) 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, DOYU stock price is currently trading at 16.22X 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 33.3. DouYu International Holdings Limited current P/B ratio of 2.3 means it is trading at a discount against its industry’s 4.9.