The9 Limited [NASDAQ: NCTY] stock went on a downward path that fall over -8.75% on Thursday, amounting to a one-week price decrease of less than -13.67%. The company report on May 14, 2021 that The9 Signed Chia Cryptocurrency Mining Machine Purchase and Cloud Service Leasing Agreements.
The9 Limited (Nasdaq: NCTY) (“The9”), an established Internet company, announced that it signed three Chia (XCH) cryptocurrency mining machine purchase and cloud service leasing agreements with three unrelated vendors, with the total contract sum of more than US$5.7 million. Upon the executions of these agreements, The9 is going to obtain approximately 130 Pebibytes Netspace, and to join the ecological construction of Chia cryptocurrency, also known as the “Green Bitcoin Alternative”. The9 had previously invested in Bitcoin and Filecoin mining machines. Chia is the third type of cryptocurrency mining implemented by The9.
Chia was created by Bram Cohen, the inventor of BitTorrent and a network protocol engineer. It was developed through Chialisp, a powerful, easy-to-audit and secured new intelligent transaction programming language. Unlike Bitcoin, which uses proof of work (POW), Chia uses proof of space and time (POST) consensus algorithm. Anyone can use the remaining hard disk space in the storage device to verify transactions without the need of consuming a lot of computing power and electricity to maintain the Chia network. Therefore Chia is considered to be a more green and environmentally friendly blockchain technology. Chia’s main network went live on March 19, 2021. On May 4, 2021, Chia was opened for the exchange of its cryptocurrency XCH with other cryptocurrencies, and XCH is currently listed for trading on exchanges such as Huobi and OKEx.
Over the last 12 months, NCTY stock rose by 101.80%. The one-year The9 Limited stock forecast points to a potential downside of -251.71. The average equity rating for NCTY stock is currently 4.00, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $224.66 million, with 18.25 million shares outstanding and 8.28 million shares in the current float. Compared to the average trading volume of 2.17M shares, NCTY stock reached a trading volume of 2124308 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on 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 1.98, with the Price to Sales ratio for NCTY stock in the period of the last 12 months amounting to 359.17.
NCTY Stock Performance Analysis:
The9 Limited [NCTY] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -13.67. With this latest performance, NCTY shares dropped by -52.25% in over the last four-week period, additionally plugging by 219.33% over the last 6 months – not to mention a rise of 101.80% 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 34.86, with the RSI for the last a single of trading hit 32.63, and the three-weeks RSI is set at 37.84 for The9 Limited [NCTY]. The present Moving Average for the last 50 days of trading for this stock 23.91, while it was recorded at 12.74 for the last single week of trading, and 16.35 for the last 200 days.
Insight into The9 Limited Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and The9 Limited [NCTY] shares currently have an operating margin of -17909.40 and a Gross Margin at -30.16. The9 Limited’s Net Margin is presently recorded at +63421.40.
Reflecting on the efficiency of the workforce at the company, The9 Limited [NCTY] managed to generate an average of $1,222,833 per employee. Receivables Turnover for the company is 0.08 with a Total Asset Turnover recorded at a value of 0.01.The9 Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.10 and a Current Ratio set at 0.10.
The9 Limited [NCTY] Insider Position Details
There are presently around $10 million, or 5.00% of NCTY stock, in the hands of institutional investors. The top three institutional holders of NCTY stocks are: CVI HOLDINGS, LLC with ownership of 223,913, which is approximately New of the company’s market cap and around 45.10% of the total institutional ownership; HUDSON BAY CAPITAL MANAGEMENT LP, holding 131,000 shares of the stock with an approximate value of $1.77 million in NCTY stocks shares; and SUSQUEHANNA INTERNATIONAL GROUP, LLP, currently with $1.38 million 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 June and at the time of the June reporting period, where 20 institutional holders increased their position in The9 Limited [NASDAQ:NCTY] by around 780,112 shares. Additionally, 4 investors decreased positions by around 91,735 shares, while 0 investors held positions by with 91,735 shares. The mentioned changes placed institutional holdings at 780,112 shares, according to the latest SEC report filing. NCTY stock had 20 new institutional investments in for a total of 780,112 shares, while 4 institutional investors sold positions of 91,735 shares during the same period.