What’s wrong with Avid Bioservices, Inc. (CDMO) today

Stay Ahead of Wall Street. Find out what is happening to Avid Bioservices, Inc. (NASDAQ:CDMO) stock today? Its price is nose-diving -0.17 points, trading at $3.55 levels, and is down -4.7% from its previous close of $3.72. The shares seem to have an active trading volume day with a reported 115504 contracts so far this session. CDMO shares had a relatively better volume day versus average trading capacity of 239.83 thousand shares, but with a 49.55 million float and a -0.27% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for CDMO stock indicates that the average analyst price target is $7.5 per share. This means the stock has a potential increase of 111.27% from where the CDMO share price has been trading recently which is between $3.465 and $3.74. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $5.

The shorts are running away from Avid Bioservices, Inc. (CDMO) stock. The latest set of short interest data was released on 30 April 2019, and the numbers show a drop in short interest in CDMO shares. While short interest still represents only 3.45% of CDMO’s float, the number of shares shorted have fallen by -61870. The number of shares shorted fell to 1648535 shares, down from 1710405 shares during the preceding fortnight. With average daily trading volumes at 162211 shares, days to cover decreased to about 10.85916 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Avid Bioservices Reaffirms Fiscal 2019 Guidance and Announces Upcoming Conference Participation” and dated May 09, 2019.

During the recent trading session for Avid Bioservices, Inc. (NASDAQ:CDMO), the company witnessed their stock drop by $-0.15 over a week and tumble down $-0.78 from the price 20 days ago. When compared to their established 52-week high of $8.44, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 09/11/18. The recent low of $3.05 stood for a -58% since 05/31/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 2.72 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 Avid Bioservices, Inc., the two-week RSI stands at 32.19. This figure suggests that CDMO 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 CDMO readings is similarly very revealing as it has a stochastic reading of 14.09% at this stage. This figure means that CDMO share price today is being overbought.

Technical chart claims that Avid Bioservices, Inc. (CDMO) would settle between $3.82/share to $3.92/share level. However, if the stock price goes below the $3.54 mark, then the market for Avid Bioservices, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $3.37 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.18. 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 Janney lowered their recommendation on shares of CDMO from Buy to Neutral in their opinion released on May 09.

CDMO equity has an average rating of 2.67, with the figure leaning towards a bullish end. 3 analysts who tracked the company were contacted by Reuters. Amongst them, 2 rated the stock as a hold while the remaining 1 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. 1 analysts rated Avid Bioservices, Inc. (NASDAQ:CDMO) 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, CDMO stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/S ratio is 4.8 while for the average stock in the same group, the multiple is 7.51.