The stock of Novan, Inc. (NASDAQ:NOVN) is now priced at $0.46 and the shares are -0.03 points down or -6.65% lower compared to its previous closing price of $0.49. The stock had 8.12 million contracts set over the past session. NOVN shares’ daily volume is compared to its average trading volume at 28.851 million shares. However, it has a float of 125 million and although its performance was 1.42% over the week, it’s one to watch. It means the stock’s downside potential is -100% with the NOVN share price recently placing at $0.45 to $0.52. However, some brokerage firms have priced the stock below the average, including one that has called $1.5.

The shorts are climbing into the Novan, Inc. stock, with the latest data on short interest released on August 14, 2020, showing that short interest numbers in the NOVN shares have risen. Short interest in the stock represents just 4.52% of its float, but the volume has raised by 1583297. The volume of shorted shares rised to 5.637 million from 4.054 million shares over the last two weeks. The average intraday trading volume has been 10.807 million shares, which means that days to cover moved to roughly 1.

In the last trading session, Novan, Inc. (NASDAQ:NOVN) raised by $0.0064 over the week and lost -$0.1635 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $3.72. The stock recorded its established 52-week high on 12/26/19.

Since 02/28/20, the stock has traded to a low of $0.215 at 112.33%, 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 -0.23. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.

Looking at current readings, Novan, Inc.’s two-week RSI is 41.25. This suggests that the stock is neutral at the moment and that NOVN shares’ price movement remains stable. The stochastic readings are equally revealing at 19.72% meaning the NOVN share price is currently in overbought territory.

The technical chart shows that the NOVN stock will likely settle at between $0.501 and $0.5455 per share. However, if the stock dips below $0.431, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $0.4055.

Currently, the stock is trading in the green of MACD, with a reading of 0.0018. 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 Piper Jaffray cut their recommendation for NOVN from Overweight to Neutral in January 06 review.

The average rating for the NOVN equity is 2.5 and is currently gathering a bullish momentum. Of 2 analysts tracking Novan, Inc. polled by Reuters, 1 rated NOVN as a hold. The remaining 1 analysts were split evenly. However, the split wasn’t equal as a majority (1) 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.

Zacks Consensus Estimate forecasts that the current-quarter revenues for Novan, Inc. (NASDAQ:NOVN) will decrease by about -99.92%, which will see them reach $1.09 million. The company’s full-year revenues are, however, expected to diminish by about -0.61%, down from $4.9 million to $4.87 million. NOVN’s expected adjusted earnings should drop almost -84.38% to end up at -$0.05 per share, while for the fiscal year, analysts project the company’s earnings to drop by about -74.36% to record -$0.3/share.