why Nikola Corporation [NKLA] is a Good Choice for Investors After New Price Target of $4.43

Nikola Corporation [NASDAQ: NKLA] gained 1.38% on the last trading session, reaching $0.92 price per share at the time. The company report on April 13, 2023 at 4:05 PM that Nikola Corporation Announces Upcoming Change to Board of Directors.

Nikola Corporation (Nasdaq: NKLA), a global leader in zero-emission transportation and energy supply and infrastructure solutions, today announced that Gerrit Marx, Lynn Forester de Rothschild and Mark Russell are retiring from Nikola’s Board of Directors at this year’s annual meeting to be held on June 7, 2023.

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“Nikola is focused on delivering results in our core business units of zero-emission trucking and energy infrastructure solutions,” said Steve Girsky, chairman, Nikola Board of Directors. “As the Company evolves, the size and composition of the Board will as well. We are grateful for the many contributions that Gerrit, Lynn and Mark have made to Nikola over the years and wish them well.”.

Nikola Corporation represents 488.05 million in outstanding shares, while the company has a total market value of $547.77 million with the latest information. NKLA stock price has been found in the range of $0.8709 to $0.9226.

If compared to the average trading volume of 18.15M shares, NKLA reached a trading volume of 27443660 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 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 $4.43 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.

BTIG Research have made an estimate for Nikola Corporation shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on March 31, 2023. While these analysts kept the previous recommendation, Morgan Stanley raised their target price to Equal-Weight. The new note on the price target was released on March 13, 2023, representing the official price target for Nikola Corporation stock. Previously, the target price had yet another drop from $7 to $5, while BTIG Research kept a Buy rating on NKLA stock.

The Average True Range (ATR) for Nikola Corporation is set at 0.11, with the Price to Sales ratio for NKLA stock in the period of the last 12 months amounting to 10.78. The Price to Book ratio for the last quarter was 0.85, with the Price to Cash per share for the same quarter was set at 0.39.

Trading performance analysis for NKLA stock

Nikola Corporation [NKLA] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 12.51. With this latest performance, NKLA shares dropped by -38.90% in over the last four-week period, additionally sinking by -68.19% over the last 6 months – not to mention a drop of -88.23% 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 30.67, with the RSI for the last a single of trading hit 31.96, and the three-weeks RSI is set at 31.44 for Nikola Corporation [NKLA]. The present Moving Average for the last 50 days of trading for this stock 1.6959, while it was recorded at 0.9259 for the last single week of trading, and 3.3578 for the last 200 days.

Nikola Corporation [NKLA]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Nikola Corporation [NKLA] shares currently have an operating margin of -1427.45 and a Gross Margin at -251.96. Nikola Corporation’s Net Margin is presently recorded at -1543.02.

Return on Total Capital for NKLA is now -88.99, given the latest momentum, and Return on Invested Capital for the company is -100.08. Return on Equity for this stock declined to -128.56, with Return on Assets sitting at -69.50. When it comes to the capital structure of this company, Nikola Corporation [NKLA] has a Total Debt to Total Equity ratio set at 72.74. Additionally, NKLA Total Debt to Total Capital is recorded at 42.11, with Total Debt to Total Assets ending up at 30.30. Long-Term Debt to Equity for the company is recorded at 60.75, with the Long-Term Debt to Total Capital now at 35.17.

Reflecting on the efficiency of the workforce at the company, Nikola Corporation [NKLA] managed to generate an average of -$522,825 per employee. Receivables Turnover for the company is 2.06 with a Total Asset Turnover recorded at a value of 0.05.

Nikola Corporation [NKLA]: An earnings per share (EPS) analysis

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%.

An analysis of insider ownership at Nikola Corporation [NKLA]

There are presently around $132 million, or 25.80% of NKLA stock, in the hands of institutional investors. The top three institutional holders of NKLA stocks are: NORGES BANK with ownership of 33,581,371, which is approximately 97.087% of the company’s market cap and around 0.90% of the total institutional ownership; VANGUARD GROUP INC, holding 31,513,851 shares of the stock with an approximate value of $29.09 million in NKLA stocks shares; and BLACKROCK INC., currently with $21.73 million in NKLA stock with ownership of nearly 24.336% of the company’s market capitalization.

Positions in Nikola Corporation stocks held by institutional investors increased at the end of Tuesday and at the time of the Tuesday reporting period, where 128 institutional holders increased their position in Nikola Corporation [NASDAQ:NKLA] by around 39,674,627 shares. Additionally, 132 investors decreased positions by around 16,913,128 shares, while 70 investors held positions by with 86,777,342 shares. The mentioned changes placed institutional holdings at 143,365,097 shares, according to the latest SEC report filing. NKLA stock had 46 new institutional investments in for a total of 1,990,918 shares, while 70 institutional investors sold positions of 7,464,578 shares during the same period.


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