Why Iconix Brand Group, Inc. (ICON) shares are suddenly plunging -4.43% today

What just happened? Iconix Brand Group, Inc. (NASDAQ:ICON) stock value has plummeted by nearly -4.43% or (-0.05 points) to $1.08 from its previous close of $1.13. 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 180171 contracts so far this session. ICON shares had a relatively better volume day versus average trading capacity of 586.41 thousand shares, but with a 6.44 million float and a -26.62% run over a week, it’s definitely worth keeping an eye on. ICON share price has been trading recently between $1.106 and $1.18. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $8.

The shorts are running away from Iconix Brand Group, Inc. (ICON) stock. The latest set of short interest data was released on 30 April 2019, and the numbers show a drop in short interest in ICON shares. While short interest still represents only 18.91% of ICON’s float, the number of shares shorted have fallen by -113109. The number of shares shorted fell to 1103746 shares, down from 1216855 shares during the preceding fortnight. With average daily trading volumes at 1463136 shares, days to cover decreased to about 3.89045 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Edited Transcript of ICON earnings conference call or presentation 14-May-19 2:00pm GMT” and dated May 14, 2019.

During the recent trading session for Iconix Brand Group, Inc. (NASDAQ:ICON), the company witnessed their stock drop by $-0.25 over a week and tumble down $-0.82 from the price 20 days ago. When compared to their established 52-week high of $8.5, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 06/18/18. The recent low of $0.7 stood for a -87.3% since 12/31/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 2.33 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 Iconix Brand Group, Inc., the two-week RSI stands at 32.22. This figure suggests that ICON 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 ICON readings is similarly very revealing as it has a stochastic reading of 13.45% at this stage. This figure means that ICON share price today is being overbought.

Technical chart claims that Iconix Brand Group, Inc. (ICON) would settle between $1.17/share to $1.21/share level. However, if the stock price goes below the $1.1 mark, then the market for Iconix Brand Group, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $1.06 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.21. 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 ROTH Capital lowered their recommendation on shares of ICON from Buy to Neutral in their opinion released on October 31. FBR & Co. analysts have lowered their rating of Iconix Brand Group, Inc. (NASDAQ:ICON) stock from Buy to Neutral in a separate flash note issued to investors on October 30. Analysts at Sidoti, made their first call for the equity with a Neutral recommendation, according to a research note that dated back to September 19.

Moving on, ICON stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/S ratio is 0.06 while for the average stock in the same group, the multiple is 3.96.