The stock of 2U, Inc. (NASDAQ:TWOU) is now priced at $44.04 and the shares are 2.65 points up or 6.4% higher compared to its previous closing price of $41.39. The stock had 1.71 million contracts set over the past session. TWOU shares’ daily volume is compared to its average trading volume at 1.674 million shares. However, it has a float of 58.06 million and although its performance was 14.3% over the week, it’s one to watch. Analysts have given the TWOU stock a yearly average price target of $50.75 per share. It means the stock’s upside potential is 15.24% with the TWOU share price recently placing at $41.31 to $44.42. However, some brokerage firms have priced the stock below the average, including one that has called $40.
The shorts are running away from the 2U, Inc. stock, with the latest data on short interest released on August 14, 2020, showing that short interest numbers in the TWOU shares have declined. Short interest in the stock represents just 18.52% of its float, but the volume has dropped by -334402. The volume of shorted shares dropped to 10.751 million from 11.086 million shares over the last two weeks. The average intraday trading volume has been 2.346 million shares, which means that days to cover moved to roughly 4.582953.
In the last trading session, 2U, Inc. (NASDAQ:TWOU) raised by $5.51 over the week and lost -$3.11 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $49.46. The stock recorded its established 52-week high on 08/05/20.
Since 03/18/20, the stock has traded to a low of $11.51 at 282.62%, 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 0.8. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, 2U, Inc.’s two-week RSI is 61.04. This suggests that the stock is neutral at the moment and that TWOU shares’ price movement remains stable. The stochastic readings are equally revealing at 93.53% meaning the TWOU share price is currently in oversold territory.
The technical chart shows that the TWOU stock will likely settle at between $45.2 and $46.37 per share. However, if the stock dips below $42.09, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $40.15.
Currently, the stock is trading in the green of MACD, with a reading of 2.11. 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 Credit Suisse raised their recommendation for TWOU from Neutral to Outperform in July 31 review while maintain their target price of $48. Jefferies analysts see the stock as a Buy with a target price of $50 in a flash note released to investors on July 16 initiating covering the stock. KeyBanc Capital Markets analysts see the stock as Sector Weight when the analysts initiated the share price coverage on June 30.
The average rating for the TWOU equity is 2.07 and is currently gathering a bullish momentum. Of 15 analysts tracking 2U, Inc. polled by Reuters, 5 rated TWOU as a hold. The remaining 10 analysts were split evenly. However, the split wasn’t equal as a majority (10) 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 2U, Inc. (NASDAQ:TWOU) will decrease by about -99.9%, which will see them reach $189 million. The company’s full-year revenues are, however, expected to increase by about 29.37%, up from $575 million to $743 million. TWOU’s expected adjusted earnings should drop almost -39.02% to end up at -$0.25 per share, while for the fiscal year, analysts project the company’s earnings to drop by about -15.38% to record -$0.99/share.