Gut Call On Coda Octopus Group, Inc. (CODA): Now It’s Really Down Too Much

Coda Octopus Group, Inc. (NASDAQ:CODA) is one of the hottest stocks trading today on the U.S. Markets as the company shares are 5.59% or 0.6 points lower from last closing price of $10.74, reaching $10.14 at last check. Any clue why there is so much of action in the CODA stock? The share price has dropped in 4 of the last 5 days and is down -25.49% over the past week. It will be exciting to see whether the stock manages to continue decreasing or take a minor break for the next few days. The move came on solid volume too with far more shares changing hands than in a normal session. Trading activity as of this writing strengthened by 19,939 shares, and in total 77239 shares valued at $783203 were seen changing hands compared with 57300 shares valued at $615402 recorded at the previous session. You should take into consideration that a greater volume on lower prices causes the situation where nobody wants to continue with their long position and wants to exit from the CODA stock.

Coda Octopus Group, Inc. (CODA) shares have notched a 3-month decline of about -25.49%, but has still advanced 89.86% year to date. By comparison, the stock added 139.18% over the past 12 months, while it slipped -8.75% over the 1 month. The company’s market cap is around $120.33M, with its short interest ratio standing at 1.79%.

In the current trading session for CODA, the stock witnessed two major price actions, it rose to a high of $10.83 and was down as much as $10.09 at one point. The high recorded is very low when compared to their 52-week high which is $3.91. The 52-week high is now at -47.4 distance from current price. Their recent low of $19.2 represents a 158.31% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for CODA is $18, this is below the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.

The stock of Coda Octopus Group, Inc. earned $0.8 per share in the trailing 12 months and has a P/E ratio of 12.68. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 23.84 and lower compared to the sector’s average of 15.87. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. CODA also has P/S multiple of 4.6. This is smaller versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 358.51x.

The company recorded an interesting insider sale transaction by the Director on Jul 25, 2019. A Securities and Exchanges Commission filings show that G Tyler Runnels sold a total of 4,864 CODA shares that day for a sum of around $63,475. Coda Octopus Group, Inc. (CODA) insiders have acquired no shares in the stock within the past three months. In total, individual insiders traded 186,864 shares in the business, which makes up 9.198% of 2,031,549 shares that were traded over a year. In the past 12 months, insiders have purchased 220,965 shares while the seller parted with 1,810,584 shares.

CODA‘s last price was up 5.34% as compared to the average trading price of 50 days recorded at $9.63 while enlarging the period to 200 trading days, the average closing price was $12.41. At present, there are 10.89 million in the total number of common shares owned by the public and among those 4.09 million shares have been available to trade. The percentage of shares being held by the company management was 14.5% while institutions stake was 8.5%. The company has generated positive returns on equity over the last 12 months (33.8%). It managed to keep its gross profit margin at 67.7% over the past 12 months.

When assessing the full upside of the CODA stock, there is another set of technicals that should be looked into and considered. Its -15.82% decline from moving average of $12.05 has brought about a negative sentiment when calculated over the last 20 days. The market has allocated a beta of 1.78 to the stock. With the beta been greater than one, this implies that the company shares are theoretically more volatile than the market, something that the traders definitely are keeping an eye on.

In the last five years, the EPS of the company has been roughly -9.3%. Though the percentage looks disappointing, extra headwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will decrease annually by 0%. The revenue of the company has retreated at an average annualized rate of about -4.2 over the last five years. The company recently recorded an increase of 94.3%, but this figure is rather attractive.