Overstock.com Inc. [NASDAQ:OSTK] shares were trading 8.23% to $84.65 on Wednesday. Comparativley, The S&P 500 is trading at 1.71%. For the year, the stock is trading 1100.71% and the five-day change stands at 16.52%.
OSTK’s next earning date is 11/17/2020. Currently, the company is booking earnings per share of -1.15 with the price-to-cash-flow at 28.86.
The company is also reporting -1.15 earnings per share.
The Price is right
Holding a Market Cap of $3.87 billion, Overstock.com Inc. has seen a trading range over the last year of $2.53-$128.50.
For the last five days, OSTK is up from its last closing price. The average shares trading hands each day is 7.06M.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for OSTK. When we apply the Elder Force Index to Overstock.com Inc., we are seeing an Elder Force Indicator number of 27559226.52.
Recent Performance
The recent performance of the stock is another area that can tell traders how to proceed. OSTK is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 307.82.
In the last quarter, OSTK made a profit of 179.88 million. Overstock.com Inc. also saw quarter revenue growth year over year of -19.88%.
Technical Analysis
Looking at popular technical indicators, the company’s 5-day moving average is 81.08 compared to the 50-day moving average of 12.93%. 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. OSTK currently holds a 9-day RSI of 59.24%, while 100-day RSI stands at 57.44%.
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. OSTK’s 9-day MACD is 3.46 and the company’s 100-day MACD stands at 22.47.
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 1.67% by insiders and 44.95% by institutions. Regarding institutional holdings, Morgan Stanley owns 12.40%, while the second top holder, Blackrock Inc., currently owns 7.41%.
Over the last six months, insiders have sold 10,000 with the most recent transaction from Lee Carter Paul, Chief Administrative Officer, with a sell at price 75.00 per share.
Conclusion
Overall, the recommended rating for OSTK is Moderate Buy. Currently, the company has 2 analysts watching the stock, and the average quarterly earnings estimate is -0.23. Quarterly revenue estimates are averaging 579.89M with the high estimate reaching 747.2M and the low at 489.13M.
To review, the current 1-year target estimate is sitting at 100.00, while the current price 84.65. Based on this, we expect the stock to rise considering the aforementioned fundamentals.
