Natus Medical Inc. (Nasdaq:BABY) shares have climbed today, but that may not actually be good news for the healthcare company as its RSI is over 70 – putting it into ‘overbought’ territory.
Located in Pleasanton, California, Natus Medical Inc. is a provider of products and services that are used in the screening, detection, treatment, monitoring, and tracking of common medical ailments. The predominant focus is newborn care, hearing impairment, neurological dysfunction, neurosurgery, epilepsy, sleep disorders, and balance and mobility disorders.
Companies that are considered to be overbought generally have a higher chance of having stock prices reverse and dive. This situation places Natus Medical in a vulnerable position. Since there is no predicted date as to when stock prices could reverse, the company should also be more aware of its shares.
The market closed at $35.80 USD yesterday, a relatively higher closing number than what the company had been seeing within the past month.
Reports have already surfaced suggesting that investors should watch Natus Medical with care, as earnings estimates at the moment are also not looking very well.
The company announced in February that it would be implementing a share repurchase program of its common stock, totalling $30 million.
According the announcement, Natus planned to use cash on hand, cash generated from operations, existing credit facilities or other financing in order to fund the program. The expiration date for the repurchase program is set for February 26, 2019.
Just before noon (PST) today, shares for Natus Medical had reached $35.95 USD and had gone up approximately 1.13% since the market opened.
There is no telling when, or if, shares of Natus Medical will begin to dive, but they have been steadily climbing this past week and look to continue this trend today.
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