The stock of Dada Nexus Limited (NASDAQ:DADA) is now priced at $25.7 and the shares are -0.52 points down or -1.98% lower compared to its previous closing price of $26.22. The stock had 1.282 million contracts set over the past session. DADA shares’ daily volume is compared to its average trading volume at 1.41 million shares. However, it has a float of 220 million and although its performance was -12.17% over the week, it’s one to watch. Analysts have given the DADA stock a yearly average price target of $32 per share. It means the stock’s upside potential is 24.51% with the DADA share price recently placing at $24.7 to $26.48. However, some brokerage firms have priced the stock below the average, including one that has called $¥137.83.
The shorts are running away from the Dada Nexus Limited stock, with the latest data on short interest released on August 14, 2020, showing that short interest numbers in the DADA shares have declined. Short interest in the stock represents just 0.69% of its float, but the volume has dropped by -201799. The volume of shorted shares dropped to 1.516 million from 1.718 million shares over the last two weeks. The average intraday trading volume has been 482754 shares, which means that days to cover moved to roughly 3.139972.
Looking at current readings, Dada Nexus Limited’s two-week RSI is 49.04. This suggests that the stock is neutral at the moment and that DADA shares’ price movement remains stable. The stochastic readings are equally revealing at 30.88% meaning the DADA share price is currently in neutral territory.
The technical chart shows that the DADA stock will likely settle at between $26.55 and $27.41 per share. However, if the stock dips below $24.77, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $23.85.
Currently, the stock is trading in the red of MACD, with a reading of -1.11. 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 Maxim Group assigned DADA a rating of Neutral in their intiating review released on June 30.
The average rating for the DADA equity is 2 and is currently gathering a bullish momentum. Of 4 analysts tracking Dada Nexus Limited polled by Reuters, 1 rated DADA as a hold. The remaining 3 analysts were split evenly. However, the split wasn’t equal as a majority (3) rated it as a buy or strong buy. 0 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 69.3. Dada Nexus Limited has its P/E ratio at 7.6, which means that the stock is currently trading at a discount relative to the 15.2 industry average.