Nikola Corporation [NKLA] is -29.08% lower this YTD. Is it still time to buy?


Nikola Corporation [NASDAQ: NKLA] traded at a low on 05/02/22, posting a -2.51 loss after which it closed the day’ session at $7.00. The company report on May 2, 2022 that Nikola Announces $200 Million Convertible Senior Notes Investment.

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Nikola Corporation (NASDAQ: NKLA) (“Nikola”, or the “Company”), a global leader in zero-emissions transportation and energy infrastructure solutions, today announced that an institutional investor has agreed to make a $200 million investment in Nikola through the purchase of Convertible Senior Notes.

Funds advised by Antara Capital LP have agreed to purchase $200 million aggregate amount of 8.00% / 11.00% Convertible Senior Notes due 2026 (the “Notes”). The Notes will bear interest at a rate of 8.00% if paid in cash, or at a rate of 11.00% through the issuance of additional Notes, at the Company’s election.

The results of the trading session contributed to over 20848579 shares changing hands. Over the past one week, the price volatility of Nikola Corporation stands at 7.60% while the volatility over the past one month is 7.06%.

The market cap for NKLA stock reached $3.03 billion, with 407.55 million shares outstanding and 239.12 million shares in the current float. Compared to the average trading volume of 12.41M shares, NKLA reached a trading volume of 20848579 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Nikola Corporation [NKLA]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for NKLA shares is $12.88 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on NKLA stock is a recommendation set at 2.80. 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.

RBC Capital Mkts have made an estimate for Nikola Corporation shares, keeping their opinion on the stock as Sector Perform, with their previous recommendation back on February 25, 2022. While these analysts kept the previous recommendation, JP Morgan dropped their target price from $12 to $10. The new note on the price target was released on February 25, 2022, representing the official price target for Nikola Corporation stock. Previously, the target price had yet another drop from $19 to $11, while Deutsche Bank kept a Hold rating on NKLA stock. On February 25, 2022, analysts decreased their price target for NKLA shares from 25 to 15.

The Average True Range (ATR) for Nikola Corporation is set at 0.62, with the Price to Sales ratio for NKLA stock in the period of the last 12 months amounting to 3032540.00. The Price to Book ratio for the last quarter was 4.12, with the Price to Cash per share for the same quarter was set at 1.15.

How has NKLA stock performed recently?

Nikola Corporation [NKLA] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -12.17. With this latest performance, NKLA shares dropped by -34.64% in over the last four-week period, additionally sinking by -40.68% over the last 6 months – not to mention a drop of -36.36% 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 NKLA stock in for the last two-week period is set at 34.37, with the RSI for the last a single of trading hit 27.32, and the three-weeks RSI is set at 38.95 for Nikola Corporation [NKLA]. The present Moving Average for the last 50 days of trading for this stock 8.33, while it was recorded at 7.34 for the last single week of trading, and 9.96 for the last 200 days.

Nikola Corporation [NKLA]: Deeper insight into the fundamentals

Return on Equity for this stock declined to -82.14, with Return on Assets sitting at -67.18.

Earnings analysis for Nikola Corporation [NKLA]

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for NKLA. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Nikola Corporation go to 20.59%.

Insider trade positions for Nikola Corporation [NKLA]

There are presently around $767 million, or 27.60% of NKLA stock, in the hands of institutional investors. The top three institutional holders of NKLA stocks are: VANGUARD GROUP INC with ownership of 18,761,608, which is approximately 1.786% of the company’s market cap and around 0.20% of the total institutional ownership; NORGES BANK, holding 17,038,863 shares of the stock with an approximate value of $119.27 million in NKLA stocks shares; and BLACKROCK INC., currently with $103.2 million in NKLA stock with ownership of nearly 8.068% of the company’s market capitalization.

Positions in Nikola Corporation stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 134 institutional holders increased their position in Nikola Corporation [NASDAQ:NKLA] by around 13,253,375 shares. Additionally, 104 investors decreased positions by around 7,520,990 shares, while 77 investors held positions by with 88,845,427 shares. The mentioned changes placed institutional holdings at 109,619,792 shares, according to the latest SEC report filing. NKLA stock had 60 new institutional investments in for a total of 7,710,128 shares, while 41 institutional investors sold positions of 1,909,634 shares during the same period.