The stock of Houghton Mifflin Harcourt Company (NASDAQ:HMHC) is now priced at $2.83 and the shares are -0.12 points down or -4.07% lower compared to its previous closing price of $2.95. The stock had 3.753 million contracts set over the past session. HMHC shares’ daily volume is compared to its average trading volume at 4.533 million shares. However, it has a float of 124 million and although its performance was -4.39% over the week, it’s one to watch. Analysts have given the HMHC stock a yearly average price target of $2.78 per share. It means the stock’s downside potential is -1.77% with the HMHC share price recently placing at $2.74 to $2.89. However, some brokerage firms have priced the stock below the average, including one that has called $1.
The shorts are climbing into the Houghton Mifflin Harcourt Company stock, with the latest data on short interest released on July 15, 2020, showing that short interest numbers in the HMHC shares have risen. Short interest in the stock represents just 2.8% of its float, but the volume has raised by 73957. The volume of shorted shares rised to 3.481 million from 3.407 million shares over the last two weeks. The average intraday trading volume has been 1.003 million shares, which means that days to cover moved to roughly 3.468841.
In the last trading session, Houghton Mifflin Harcourt Company (NASDAQ:HMHC) dropped by -$0.13 over the week and gained $1.23 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $6.85. The stock recorded its established 52-week high on 02/20/20.
Since 05/14/20, the stock has traded to a low of $1.03 at 174.76%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 1.44. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, Houghton Mifflin Harcourt Company’s two-week RSI is 56.69. This suggests that the stock is neutral at the moment and that HMHC shares’ price movement remains stable. The stochastic readings are equally revealing at 63.74% meaning the HMHC share price is currently in neutral territory.
The technical chart shows that the HMHC stock will likely settle at between $2.9 and $2.97 per share. However, if the stock dips below $2.75, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $2.67.
Currently, the stock is trading in the green of MACD, with a reading of 0.15. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at BMO Capital Markets cut their recommendation for HMHC from Outperform to Market Perform in April 07 review while maintai their target price of $7 to $3. Citigroup analysts downgraded their recommendation of the stock from Buy to Sell while keeping its target price at $7.50 to $1 in a flash note released to investors on April 03. Goldman seeing the improvements upgraded the stock from Sell to Neutral on March 10.
The average rating for the HMHC equity is 3.17 and is currently gathering a bearish momentum. Of 6 analysts tracking Houghton Mifflin Harcourt Company polled by Reuters, 4 rated HMHC as a hold. The remaining 2 analysts were split evenly. However, the split wasn’t equal as a majority (1) rated it as a buy or strong buy. 1 analyst advised investors against buying the stock or to sell if they own any of the stock.
The stocks P/S ratio currently stands below the group’s average of 680. Houghton Mifflin Harcourt Company has its P/E ratio at 1.9, which means that the stock is currently trading at a discount relative to the 6.6 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Houghton Mifflin Harcourt Company (NASDAQ:HMHC) will decrease by about -99.78%, which will see them reach $555 million. The company’s full-year revenues are, however, expected to diminish by about -10.07%, down from $1390 million to $1250 million. HMHC’s expected adjusted earnings should drop almost -12.73% to end up at $0.48 per share, while for the fiscal year, analysts project the company’s earnings to grow by about 100.62% to record -$3.23/share.