The stock of Check-Cap Ltd. (NASDAQ:CHEK) is now priced at $0.38 and the shares are -0.02 points down or -2.53% lower compared to its previous closing price of $0.4. The stock had 1.162 million contracts set over the past session. CHEK shares’ daily volume is compared to its average trading volume at 4.747 million shares. However, it has a float of 42.69 million and although its performance was -11.6% over the week, it’s one to watch. It means the stock’s downside potential is -100% with the CHEK share price recently placing at $0.385 to $0.402. However, some brokerage firms have priced the stock below the average, including one that has called $2.
The shorts are running away from the Check-Cap Ltd. stock, with the latest data on short interest released on August 14, 2020, showing that short interest numbers in the CHEK shares have declined. Short interest in the stock represents just 1.24% of its float, but the volume has dropped by -107409. The volume of shorted shares dropped to 530863 from 638272 shares over the last two weeks. The average intraday trading volume has been 4.988 million shares, which means that days to cover moved to roughly 1.
In the last trading session, Check-Cap Ltd. (NASDAQ:CHEK) dropped by -$0.0505 over the week and lost -$0.2033 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $2.37. The stock recorded its established 52-week high on 01/09/20.
Since 08/24/20, the stock has traded to a low of $0.35 at 10%, 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 0.07. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, Check-Cap Ltd.’s two-week RSI is 29.01. This suggests that the stock is overbought at the moment and that CHEK shares’ price movement remains not stable. The stochastic readings are equally revealing at 15.29% meaning the CHEK share price is currently in overbought territory.
The technical chart shows that the CHEK stock will likely settle at between $0.3963 and $0.4077 per share. However, if the stock dips below $0.3793, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $0.3737.
Currently, the stock is trading in the red of MACD, with a reading of -0.0259. 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 CHEK a rating of Buy in their intiating review released on December 05. H.C. Wainwright analysts see the stock as a Buy, but they also raised the share’s target price from $5.50 to $6 in a flash note released to investors on January 11. H.C. Wainwright analysts see the stock as Buy. Nonetheless, the analysts revised the share prices down on November 28, placing it at $5.50 from $7.
The average rating for the CHEK equity is 2 and is currently gathering a bullish momentum. Of 2 analysts tracking Check-Cap Ltd. polled by Reuters, 0 rated CHEK as a hold. The remaining 2 analysts were split evenly. However, the split wasn’t equal as a majority (2) 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 64.6. Check-Cap Ltd. has its P/E ratio at 1.2, which means that the stock is currently trading at a discount relative to the 5.8 industry average.