What just happened? Companhia Energetica de Minas Gerais (NYSE:CIG) stock value has climbed by nearly 4.49% or (0.15 points) to $3.49 from its previous close of $3.34. 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 1469188 contracts so far this session. CIG shares had a relatively better volume day versus average trading capacity of 3.39 million shares, but with a 1.13 billion float and a 0.49% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for CIG stock indicates that the average analyst price target is $3.98 per share. This means the stock has a potential increase of 14.04% from where the CIG share price has been trading recently.
During the recent trading session for Companhia Energetica de Minas Gerais (NYSE:CIG), the company witnessed their stock rise $0.03 over a week and surge $0.39 from the price 20 days ago. When compared to their established 52-week high of $4.11, the high they recorded in their recent session happens to be higher. Their established 52-week high was attained by the company on 11/07/19. The recent low of $2.85 stood for a -13.39% since 11/21/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0.1 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 Companhia Energetica de Minas Gerais, the two-week RSI stands at 73.8. This figure suggests that CIG 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 CIG readings is similarly very revealing as it has a stochastic reading of 72.99% at this stage. This figure means that CIG share price today is being oversold.
Technical chart claims that Companhia Energetica de Minas Gerais (CIG) would settle between $3.37/share to $3.41/share level. However, if the stock price goes below the $3.31 mark, then the market for Companhia Energetica de Minas Gerais becomes much weaker. If that happens, the stock price might even plunge as low as $3.29 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.01. 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 Goldman, assumed coverage of CIG assigning Buy rating, according to their opinion released on November 14. JP Morgan analysts bumped their rating on Companhia Energetica de Minas Gerais (NYSE:CIG) stock from Neutral to Overweight in a separate flash note issued to investors on April 10. Analysts at Citigroup lowered the stock to a Sell call from its previous Neutral recommendation, in a research note that dated back to January 16.
Moving on, CIG stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/E ratio is 11.5 while for the average stock in the same group, the multiple is 26.2. Companhia Energetica de Minas Gerais current P/B ratio of 1.1 means it is trading at a discount against its industry’s 2.2.