Here’s Why Malibu Boats, Inc. (MBUU) is up Big Today

The biggest gainers of the session on the Wall Street include Malibu Boats, Inc. (NASDAQ:MBUU), which rose 1.62 points or 3.3% to trade at $50.77 as last check. The stock closed last session at $49.15 and sets an active trading volume day with a reported 134161 contracts so far this session. MBUU shares had a relatively better volume day versus average trading capacity of 154.26 thousand shares, but with a 19.88 million float and a 5.34% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for MBUU stock indicates that the average analyst price target is $51.67 per share. This means the stock has a potential increase of 1.77% from where the MBUU share price has been trading recently.

During the recent trading session for Malibu Boats, Inc. (NASDAQ:MBUU), the company witnessed their stock rise $1.81 over a week and surge $9.04 from the price 20 days ago. When compared to their established 52-week high of $51.45, the high they recorded in their recent session happens to be higher. Their established 52-week high was attained by the company on 06/02/20. The recent low of $24.79 stood for a -1.32% since 08/20/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 2.09 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 Malibu Boats, Inc., the two-week RSI stands at 80.54. This figure suggests that MBUU 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 MBUU readings is similarly very revealing as it has a stochastic reading of 71.38% at this stage. This figure means that MBUU share price today is being oversold.

Technical chart claims that Malibu Boats, Inc. (MBUU) would settle between $49.79/share to $50.43/share level. However, if the stock price goes below the $48.01 mark, then the market for Malibu Boats, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $46.87 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 1.74. 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 Berenberg, assumed coverage of MBUU assigning Buy rating, according to their opinion released on January 15. B. Riley FBR analysts again handed out a Buy recommendation to Malibu Boats, Inc. (NASDAQ:MBUU) stock but they lifted target price for the shares in a flash note issued to investors on August 27. The target price has been raised from $62 to $52. Analysts at Raymond James lowered the stock to a Mkt Perform call from its previous Strong Buy recommendation, in a research note that dated back to July 22.

MBUU equity has an average rating of 2.17, with the figure leaning towards a bullish end. 7 analysts who tracked the company were contacted by Reuters. Amongst them, 1 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 Malibu Boats, Inc. (NASDAQ:MBUU) 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, MBUU stock price is currently trading at 11.2X forward 12-month Consensus EPS estimates, and its P/E ratio is 14 while for the average stock in the same group, the multiple is 20.8. Malibu Boats, Inc. current P/B ratio of 4.5 means it is trading at a discount against its industry’s 4.8.