Has Resonant Inc. [RESN] Completely Outpaced Other Companies in the Technology This Year?

With a current price of $2.75, Resonant Inc. [NASDAQ:RESN] is active in the Semiconductors industry, with a 5-day price swing of 10.59%.

For the year, the stock is trading 7.85%, while, as a point of reference, the S&P 500 is trading 1.11% YTD. Other data to note on this name is a price per sales number of 81.17.

The Price is right

Holding a Market Cap of $137.99 million, Resonant Inc. has seen a trading range over the last year of $0.95-$3.29.

For the last five days, RESN is up from its last closing price. The average shares trading hands each day is 1.00M, with average 10-day volume coming in at 1.41 million.

Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for RESN. When we apply the Elder Force Index to Resonant Inc., we are seeing an Elder Force Indicator number of 92216.6.

Recent Performance

The company’s enterprise value has gone from $96.69M to $69.98M 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, RESN made a profit of 7.82 million. Resonant Inc. also saw quarter revenue growth year over year of 40.27%. In addition, the company has operating cash flow of -$21.89 million.

Technical Analysis

Looking at popular technical indicators, the company’s 5-day moving average is 2.59 compared to the 50-day moving average of 2.4535. 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. RESN currently holds a 9-day RSI of 65.62%, while 100-day RSI stands at 52.06%.

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. RESN’s 9-day MACD is 0.14 and the company’s 100-day MACD stands at 0.17.

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 13.29% by insiders and 18.99% by institutions. Regarding institutional holdings, AWM Investment Company, Inc. owns 7.82%, while the second top holder, Select Equity Group, Inc., currently owns 7.50%.

Over the last six months, insiders have sold 3,278 with the most recent transaction from MCDERMUT MARTIN S, Chief Financial Officer, with a sell at price 2.48 per share.

Conclusion

Overall, the recommended rating for RESN is Strong Buy. Currently, the company has 5 analysts watching the stock, and the average quarterly earnings estimate is -0.1. Quarterly revenue estimates are averaging 1.16M with the high estimate reaching 1.4M and the low at 800k.

To review, the current 1-year target estimate is sitting at 3.90, while the current price 2.75. Based on this, we expect the stock to rise considering the aforementioned fundamentals.