NewAge Inc. [NASDAQ:NBEV] prices rallied 12.57% on Friday.
With a current price of $2.15, NBEV is active in the Beverages – Non-Alcoholic industry and it looks to be on-track for a five-day run of 22.86%.
In addition, NBEV’s high over the last year is $3.59 and the low is $0.98. Over the last two 52 weeks, the company is trading -20.07%, while the S&P 500 is trading 0.87%.
The Price is right
Holding a Market Cap of $186.60 million, NewAge Inc. has seen a trading range over the last year of $0.98-$3.59.
For the last five days, NBEV is up from its last closing price. The average shares trading hands each day is 2.88M, with average 10-day volume coming in at 1.76 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for NBEV. When we apply the Elder Force Index to NewAge Inc., we are seeing an Elder Force Indicator number of 1043301.12.
The recent performance of the stock is another area that can tell traders how to proceed. NBEV is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 9.77. Moreover, the company’s enterprise value has gone from $177.68M to $119.95M 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, NBEV made a profit of 38.08 million. NewAge Inc. also saw quarter revenue growth year over year of 386.40%. In addition, the company has operating cash flow of -$40.66 million.
Looking at popular technical indicators, the company’s 5-day moving average is 1.91 compared to the 50-day moving average of 1.8847. 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. NBEV currently holds a 9-day RSI of 78.17%, while 100-day RSI stands at 51.02%.
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. NBEV’s 9-day MACD is 0.15 and the company’s 100-day MACD stands at 0.14.
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 11.95% by insiders and 20.32% by institutions.
Over the last six months, insiders have sold 15,000 with the most recent transaction from Kapteyn Reginald, Director, with a sell at price 1.71 per share.
Overall, the recommended rating for NBEV is Moderate Buy. Currently, the company has 2 analysts watching the stock, and the average quarterly earnings estimate is -0.06. Quarterly revenue estimates are averaging 70.69M with the high estimate reaching 71.37M and the low at 70M.