Cardlytics (NASDAQ: CDLX) shares extended their current negative trend on Wednesday, November 9, dropping by more than 10% as bears continued to pull the stock lower.
Notably, on November 7, corporate director Scott Grimes sold 9,002 shares alongside director Lynne Laube, who sold 6,430 shares on the same day; such insider trades might have sparked significant price losses.
Meanwhile, a filing made with the Securities and Exchange Commission (SEC) on November 9 showed that Cardlytics director John V. Balen had purchased 3,000 shares of the company’s stock. The transaction came to a total of $11,400, with each share costing an average of $3.80, with the director now the owner of 61,798 shares of the company’s stock.
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However, recently increased adjustments to CDLX’s profit estimates might be considered a fundamentally favorable sign. This is due to the fact that an upward trend in profit estimate revisions often results in a near-term price increase.
This year’s consensus earnings per share forecast is up 7.1% from 30 days ago. Most CDLX-following analysts on Wall Street now expect the business to post higher quarterly profits than they originally anticipated.
CDLX chart and analysis
In the last month, CDLX has been trading between $3.50 – $10.31, which is quite broad. It is currently trading near the lows of this range.
At the same time, the volume has been considerably higher in the last couple of days, in combination with the strong move down. Given that prices have been falling firmly lately, it is better to avoid new long positions here.
According to technical analysis, CDLX does not provide a decent setup right now since prices have been prolonged to the downside, and the stock is trading below all of its daily moving averages. Traders seeking a reliable entry point would be wise to wait for the market to consolidate.
On a weekly timeframe, the stock’s technical analysis indicators provide varied outcomes. The moving averages indicate a strong sell at 14, with no buyers, and the weekly summary gauge is in the ‘sell’ zone at 15. There is still no movement from the ‘neutral’ level of the weekly oscillators, which sits at 8.
Analysts on CDLX stock
On Wall Street, opinions are divided; three analysts have given conflicting recommendations for the stock, with one recommending a ‘buy,’ another a ‘hold,’ and the third a ‘sell.’
Based on analyst stock evaluations for Cardlytics over the last three months, the average price forecast for the next year is $11.33. Compared to the current price of $3.67, the target indicates a gain of 208.72%. Interestingly, even the lowest price objective for CDLX shares, $10, is higher than where the stock is now trading.
CDLX short interest
During the last month, the proportion of Cardlytics shares that have been sold short has increased. While this does not necessarily imply that the stock price will drop in the near future, investors should be aware that a greater number of shares are being sold short.
Since the previous month, Cardlytics’ short percent of float has increased by 4.14%. The business has disclosed that it had 4.53 million of its regular shares sold short; the percentage of shares shorted is now 13.66%. According to the amount of its activity, it would take market participants an average of 8.7 days to cover their short positions.
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