Ultra Clean Holdings Inc. [NASDAQ:UCTT] prices rallied 7.79% on Friday.
With a current price of $25.88, UCTT is active in the Semiconductor Equipment & Materials industry and it looks to be on-track for a five-day run of 1.49%.
In addition, UCTT’s high over the last year is $31.10 and the low is $11.20. Over the last two 52 weeks, the company is trading 117.66%, while the S&P 500 is trading 0.67%.
The Price is right
Holding a Market Cap of $969.98 million, Ultra Clean Holdings Inc. has seen a trading range over the last year of $11.20-$31.10.
For the last five days, UCTT is up from its last closing price. The average shares trading hands each day is 483.47K, with average 10-day volume coming in at 0.57 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for UCTT. When we apply the Elder Force Index to Ultra Clean Holdings Inc., we are seeing an Elder Force Indicator number of 2657451.39.
The recent performance of the stock is another area that can tell traders how to proceed. UCTT is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 9.82. Moreover, the company’s enterprise value has gone from $1.08B to $723.18M quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, UCTT made a profit of 73.9 million. Ultra Clean Holdings Inc. also saw quarter revenue growth year over year of -2.77%. In addition, the company has operating cash flow of $86.2 million.
Looking at popular technical indicators, the company’s 5-day moving average is 25.38 compared to the 50-day moving average of 26.28. So, traders might want to tread carefully if they are going to bid.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. UCTT currently holds a 9-day RSI of 46.20%, while 100-day RSI stands at 53.23%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. UCTT’s 9-day MACD is -0.82 and the company’s 100-day MACD stands at 3.08.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 3.25% by insiders and 95.53% by institutions. Regarding institutional holdings, Blackrock Inc. owns 14.77%, while the second top holder, Vanguard Group, Inc. (The), currently owns 6.72%.
Over the last six months, insiders have sold 3,413 with the most recent transaction from Siu Chris, Chief Accounting Officer & SVP, with a sell at price 30.00 per share.
Overall, the recommended rating for UCTT is Moderate Buy. Currently, the company has 5 analysts watching the stock, and the average quarterly earnings estimate is 0.65. Quarterly revenue estimates are averaging 339.89M with the high estimate reaching 340.61M and the low at 338.55M.
To review, the current 1-year target estimate is sitting at 33.60, while the current price 25.88. Based on this, we expect the stock to rise considering the aforementioned fundamentals.