The stock of SmileDirectClub, Inc. (NASDAQ:SDC) is now priced at $8.93 and the shares are -0.12 points down or -1.33% lower compared to its previous closing price of $9.05. The stock had 4.377 million contracts set over the past session. SDC shares’ daily volume is compared to its average trading volume at 6.262 million shares. However, it has a float of 81.26 million and although its performance was 4.69% over the week, it’s one to watch. Analysts have given the SDC stock a yearly average price target of $9.36 per share. It means the stock’s upside potential is 4.82% with the SDC share price recently placing at $8.9 to $9.4181.
The shorts are running away from the SmileDirectClub, Inc. stock, with the latest data on short interest released on July 15, 2020, showing that short interest numbers in the SDC shares have declined. Short interest in the stock represents just 30.19% of its float, but the volume has dropped by -6038741. The volume of shorted shares dropped to 24.528 million from 30.567 million shares over the last two weeks. The average intraday trading volume has been 3.794 million shares, which means that days to cover moved to roughly 6.464533.
Looking at current readings, SmileDirectClub, Inc.’s two-week RSI is 56.43. This suggests that the stock is neutral at the moment and that SDC shares’ price movement remains stable. The stochastic readings are equally revealing at 42.63% meaning the SDC share price is currently in neutral territory.
The technical chart shows that the SDC stock will likely settle at between $9.27 and $9.6 per share. However, if the stock dips below $8.75, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $8.56.
Currently, the stock is trading in the green of MACD, with a reading of 0.18. 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 Stifel though dropped target price of SDC stock from $9 to $11 but maintained Buy recommendation in their July 13 review. Stephens analysts see the stock as a Overweight with a target price of $11 in a flash note released to investors on June 25 initiating covering the stock. BofA/Merrill seeing the stock struggling downgraded it from Buy to Underperform on May 14 placing it at $10 to $7.
The average rating for the SDC equity is 2.5 and is currently gathering a bullish momentum. Of 13 analysts tracking SmileDirectClub, Inc. polled by Reuters, 2 rated SDC as a hold. The remaining 11 analysts were split evenly. However, the split wasn’t equal as a majority (8) rated it as a buy or strong buy. 3 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 43. SmileDirectClub, Inc. has its P/E ratio at 10.8, which means that the stock is currently trading at a premium relative to the 4.6 industry average.