Buy or Sell on Surface Oncology Inc. [SURF] as the Price Moves to $6.89?

Surface Oncology Inc. [NASDAQ:SURF] price is worthing noting Wednesday. The current price is $7.69 with a high of $7.90 and $6.89. Analysts see the the current price target is $10.80.

To ground this price against the rest of the market, over the last two 52 weeks, the company is trading 525.20%, while the S&P 500 is trading 1.71%. Traders should note that the company’s next earning date is 11/17/2020. The company has price per sales of 7.94.

The Price is right

Holding a Market Cap of $312.68 million, Surface Oncology Inc. has seen a trading range over the last year of $1.20-$7.75.

For the last five days, SURF is up from its last closing price. The average shares trading hands each day is 815.98K.

Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for SURF. When we apply the Elder Force Index to Surface Oncology Inc., we are seeing an Elder Force Indicator number of 824728.0.

Recent Performance

In the last quarter, SURF made a profit of 14.54 million. Surface Oncology Inc. also saw quarter revenue growth year over year of -74.15%.

Technical Analysis

Looking at popular technical indicators, the company’s 5-day moving average is 7.13 compared to the 50-day moving average of 1.32%. So, we are clearly seeing an upward trajectory here.

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. SURF currently holds a 9-day RSI of 67.42%, while 100-day RSI stands at 56.30%.

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. SURF’s 9-day MACD is 0.39 and the company’s 100-day MACD stands at 1.55.

Inside Moves

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 16.76% by insiders and 62.75% by institutions.

Over the last six months, insiders have sold 332,780 with the most recent transaction from EcoR1 Capital, LLC, 10% Owner, with a sell at price 7.14 per share.

Conclusion

Overall, the recommended rating for SURF is Strong Buy. Currently, the company has 5 analysts watching the stock, and the average quarterly earnings estimate is -0.39.

To review, the current 1-year target estimate is sitting at 10.80, while the current price 7.69. Based on this, we expect the stock to rise considering the aforementioned fundamentals.