Latest evolution in the price of Helios and Matheson Analytics Inc. (NASDAQ:HMNY) stock has been one of the most talked about matter among the interested investors. Analysts often use price and volume data to predict future stock performance. In the case of HMNY, the chart has some interesting things to say about where the stock might be headed.
How has the stock performed recently?
Helios and Matheson Analytics Inc. (NASDAQ:HMNY) has been trading in a bullish manner, based on the relative positions of the stock’s 20 and 200 day moving averages. In the last month, the price of HMNY has increased +23.48%. Shares are now up over the past year, outperforming the broad market by -100% and outperformed a peer group of similar companies by 104%. After the latest session, which saw the stock close at a price of $7.73, HMNY sits below its 52-week high.
Of course, these surface-level price movements don’t tell us much about the direction that HMNY may be headed in the future. Fortunately, there is way to use the speed and magnitude of these price changes to predict future performance, thanks to what are known as momentum indicators. As momentum slows, it might be a sign that a support or resistance level has been reached, and that a trend is about to reverse. Two such indicators are the RSI (Relative Strength Index) and the Stochastic %k Oscillator, which fluctuate on a scale of 0 to 100. A reading above 70 indicates that a stock is overvalued, and a reading below 30 implies that it is undervalued. The 20-day RSI for HMNY is 47.28%, which suggests that the stock is not particularly expensive or cheap, and not predisposed to a reactive price movement based on this measure. The 20-day Stochastic %k measure, which sits at 55.19%, tells a similar story, and suggests that HMNY currently trades in neutral territory.
What do the trading volumes reveal?
Analysts use volume trends to assess the level of conviction behind a stock’s price changes. When volumes suddenly increase above normal levels, it can be a sign that investors feel very strongly in one way or the other about the future direction of a stock, or may even have access to inside information. Helios and Matheson Analytics Inc. (HMNY) average trading volume of 7,225,465 during the past month is 114.85% above its average volume over the past year, indicating that investors have been more active than usual in the stock in recent times.
What do the analysts think?
HMNY is currently undervalued by -69.08% relative to the average 1-year price target of $25.00 taken from a group of Wall Street Analysts. The average investment recommendation on a scale of 1 to 5 (1 being a strong buy, 3 a hold, and 5 a sell) is 2.00, which implies that analysts are generally neutral in their outlook for HMNY over the next year.
How risky is the stock?
Absolute price performance isn’t the only thing analysts consider when predicting future performance: volatility matters as well. Beta, which measures the stock’s volatility relative to the overall market, is a simple but effective metric for assessing risk.
Helios and Matheson Analytics Inc. (NASDAQ:HMNY) has a beta of 0.55, compared to a beta of 1 for the market, which implies that the stock’s price movements are less extreme than the market as a whole. HMNY therefore has an below average level of market risk. During the past couple of weeks, HMNY average daily volatility was 177.47%, which is 50.16 percentage points lower than the average volatility over the past 100 days.