An interesting stock that came up in some of our conversations today is Jumia Technologies AG (NYSE:JMIA). At current price of $5.54, the shares have already added 0.21 points (3.96% higher) from its previous close of $5.33. Should you buy or avoid them? The stock sets an active trading volume day with a reported 1939271 contracts so far this session. JMIA shares had a relatively better volume day versus average trading capacity of 2.21 million shares, but with a 6.75 million float and a -2.56% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for JMIA stock indicates that the average analyst price target is $11.69 per share. This means the stock has a potential increase of 111.01% from where the JMIA share price has been trading recently.
Looking at the current readings for Jumia Technologies AG, the two-week RSI stands at 43.73. This figure suggests that JMIA 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 JMIA readings is similarly very revealing as it has a stochastic reading of 8.85% at this stage. This figure means that JMIA share price today is being overbought.
Technical chart claims that Jumia Technologies AG (JMIA) would settle between $5.51/share to $5.69/share level. However, if the stock price goes below the $5.22 mark, then the market for Jumia Technologies AG becomes much weaker. If that happens, the stock price might even plunge as low as $5.11 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.03. 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 RBC Capital Mkts raised their recommendation on shares of JMIA from Sector Perform to Outperform in their opinion released on August 22. Morgan Stanley analysts bumped their rating on Jumia Technologies AG (NYSE:JMIA) stock from Underweight to Equal-Weight in a separate flash note issued to investors on August 20. Analysts at Raymond James released an upgrade from Mkt Perform to Outperform for the stock, in a research note that dated back to May 14.
JMIA equity has an average rating of 2.5, with the figure leaning towards a bullish end. 8 analysts who tracked the company were contacted by Reuters. Amongst them, 3 rated the stock as a hold while the remaining 5 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 4 analysts rated Jumia Technologies AG (NYSE:JMIA) as a buy or a strong buy while 1 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, JMIA 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 58. Jumia Technologies AG current P/B ratio of 1.6 means it is trading at a discount against its industry’s 11.9.