The9 Limited [NCTY] moved up 9.16: Why It’s Important

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The9 Limited [NASDAQ: NCTY] gained 9.16% or 0.23 points to close at $2.74 with a heavy trading volume of 1176039 shares. The company report on October 5, 2020 that The9 Announces Closing of US$8.7 Million Underwritten Offering.

The9 Limited (Nasdaq: NCTY) (“The9” or the “Company”), an established Internet company, announced the completion of an underwritten offering of 23,500,000 American depositary shares (the “ADSs”) and warrants (the “Warrants”) to purchase 23,500,000 ADSs at a combined offering price of US$0.37 for one ADS and one Warrant to purchase one ADS. The ADSs and the Warrants were issued and sold to investors in a combination of one ADS and one Warrant to purchase one ADS, and are immediately separated upon issuance. Each Warrant is immediately exercisable for one ADS at an exercise price of US$0.37 per ADS and will expire three years from issuance.

Maxim Group LLC acted as sole book-running manager in connection with the offering.

It opened the trading session at $2.475, the shares rose to $2.81 and dropped to $2.41, the range by which the price of stock traded the whole day. The daily chart for NCTY points out that the company has recorded -55.08% loss over the past six months. However, it is still -34.31% lower than its most recent low trading price.

If we look at the average trading volume of 514.68K shares, NCTY reached to a volume of 1176039 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about The9 Limited [NCTY]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for NCTY shares is $3.50 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on NCTY stock is a recommendation set at 4.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

JP Morgan have made an estimate for The9 Limited shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on November 13, 2009. The new note on the price target was released on June 18, 2009, representing the official price target for The9 Limited stock. Previously, the target price had yet another drop from $17 to $11, while Roth Capital kept a Hold rating on NCTY stock. On January 27, 2009, analysts increased their price target for NCTY shares from 16 to 20.

The Average True Range (ATR) for The9 Limited is set at 0.30

Trading performance analysis for NCTY stock

The9 Limited [NCTY] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 15.13. With this latest performance, NCTY shares dropped by -13.84% in over the last four-week period, additionally sinking by -55.08% over the last 6 months – not to mention a drop of -70.38% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for NCTY stock in for the last two-week period is set at 44.60, with the RSI for the last a single of trading hit 60.78, and the three-weeks RSI is set at 43.41 for The9 Limited [NCTY]. The present Moving Average for the last 50 days of trading for this stock 3.99, while it was recorded at 2.46 for the last single week of trading, and 5.94 for the last 200 days.

The9 Limited [NCTY]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and The9 Limited [NCTY] shares currently have an operating margin of -38089.23 and a Gross Margin at -835.53. The9 Limited’s Net Margin is presently recorded at -55820.08.

Reflecting on the efficiency of the workforce at the company, The9 Limited [NCTY] managed to generate an average of -$452,247 per employee. Receivables Turnover for the company is 0.04 with a Total Asset Turnover recorded at a value of 0.00.The9 Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.10 and a Current Ratio set at 0.10.

An analysis of insider ownership at The9 Limited [NCTY]

There are presently around $0 million, or 0.60% of NCTY stock, in the hands of institutional investors. The top three institutional holders of NCTY stocks are: HRT FINANCIAL LLC with ownership of 11,464, which is approximately New of the company’s market cap and around 45.10% of the total institutional ownership; JANE STREET GROUP, LLC, holding 9,482 shares of the stock with an approximate value of $26000.0 in NCTY stocks shares; and CITADEL ADVISORS LLC, currently with $11000.0 in NCTY stock with ownership of nearly New of the company’s market capitalization.

Positions in The9 Limited stocks held by institutional investors increased at the end of September and at the time of the September reporting period, where 4 institutional holders increased their position in The9 Limited [NASDAQ:NCTY] by around 28,492 shares. Additionally, 4 investors decreased positions by around 16,461 shares, while 2 investors held positions by with 14,059 shares. The mentioned changes placed institutional holdings at 30,894 shares, according to the latest SEC report filing. NCTY stock had 4 new institutional investments in for a total of 28,492 shares, while 4 institutional investors sold positions of 16,461 shares during the same period.

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