The stock of The Michaels Companies, Inc. (NASDAQ:MIK) is now priced at $11.13 and the shares are 0.33 points up or 3.06% higher compared to its previous closing price of $10.8. MIK shares have a float of 93.7 million and although its performance was 14.51% over the week, it’s one to watch. Analysts have given the MIK stock a yearly average price target of $4.96 per share. It means the stock’s downside potential is -55.44% with the MIK share price recently placing at $10.67 to $11.16. However, some brokerage firms have priced the stock below the average, including one that has called $1.95.

The shorts are running away from the The Michaels Companies, Inc. stock, with the latest data on short interest released on August 14, 2020, showing that short interest numbers in the MIK shares have declined. Short interest in the stock represents just 26.83% of its float, but the volume has dropped by -484703. The volume of shorted shares dropped to 25.139 million from 25.623 million shares over the last two weeks. The average intraday trading volume has been 2.662 million shares, which means that days to cover moved to roughly 9.442364.

In the last trading session, The Michaels Companies, Inc. (NASDAQ:MIK) raised by $1.41 over the week and gained $3.95 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $11.43. The stock recorded its established 52-week high on 08/26/20.

Since 03/18/20, the stock has traded to a low of $1 at 1013%, 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 3. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.

Looking at current readings, The Michaels Companies, Inc.’s two-week RSI is 78.49. This suggests that the stock is oversold at the moment and that MIK shares’ price movement remains not stable. The stochastic readings are equally revealing at 88.28% meaning the MIK share price is currently in oversold territory.

The technical chart shows that the MIK stock will likely settle at between $11.3 and $11.48 per share. However, if the stock dips below $10.81, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $10.5.

Currently, the stock is trading in the green of MACD, with a reading of 0.85. 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 Telsey Advisory Group though dropped target price of MIK stock from $6 to $10 but maintained Market Perform recommendation in their August 21 review. JP Morgan analysts upgraded their recommendation of the stock from Neutral to Overweight while keeping its target price at $13 in a flash note released to investors on June 08. Guggenheim seeing the stock struggling downgraded it from Buy to Neutral on March 18.

The average rating for the MIK equity is 3 and is currently gathering a bullish momentum. Of 10 analysts tracking The Michaels Companies, Inc. polled by Reuters, 4 rated MIK as a hold. The remaining 6 analysts were split evenly. However, the split wasn’t equal as a majority (3) 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.

Elsewhere, the MIK stock price is 7.67X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 10 below the group’s average of 54.1. The Michaels Companies, Inc. has its P/E ratio at 0, which means that the stock is currently trading at a discount relative to the 7.2 industry average.