During early morning trading today, Organovo Holdings Inc. (NASDAQ:$ONVO) stock traded down -1.36% to a low of $2.19. The company had a total trade volume of 116,202 shares. This compares poorly to the average daily volume of 814,590 shares. Trading volume is often used by investors as an indicator of a trend or trend reversal. It can also illustrate possible exit or entry points.
Investors can also figure out whether they should sell a security because of low activity by looking at the trading volume. A possible reversal or weak trend can be predicted if there is no relationship between the trading volume and the price of a stock.
A Look at the Indicators
Currently, the company reports its market cap as $230.30 million with 104.74 million shares outstanding. These shares refer to stock that is presently held by shareholders. This also includes restricted shares owned by the company’s insiders and blocks owned by institutions.
Institutional investors currently control 25.20% of Organovo’s shares, with that number changing by 5.14% over the past three months. This contrasts with the relatively small insider ownership of 1.90% which has not changed at all in the past 6 months.
Now let’s look at the Price/Earnings Ratio.
Price/Earnings Ratio
The PE ratio is a commonly used tool by investors that is reached by dividing the current market price of the stock by its Earnings Per Share. As mentioned above, the current market price of the stock is $2.19. The company currently has an EPS of $-0.40 according to most recent reports. This works out to a P/E ratio of 0.00, which hints that the stock may be a good bargain due to its untapped and unknown growth potential.
The Relative Strength Index is another tool we can look at. It is a momentum oscillator that monitors price movement changes and speeds. The RSI moves between 0 and 100, with anything below 30 being oversold and anything over 70 indicating an overbought situation. It can also be used to identify general trends, divergences, failure swings, and centerline crossovers. Organovo currently sits at an RSI of 54.62 according to finviz.com.
What are Analysts Suggesting?
With a mean recommendation of 1.30, where the scale ranges from a 1 or ‘Strong-Buy’ and 5 or ‘Strong-Sell’, indicating that the stock is sitting at a ‘Strong-Buy’. The aggregate target price is set at $4.67.
Featured Image: twitter
