Allena Pharmaceuticals, Inc. has moved higher as of late, but there could definitely be trouble on the horizon for this company. That is because ALNA is now in overbought territory with an RSI value of 79.67.
What is RSI?
RSI stands for ‘Relative Strength Index’ and it is a popular indicator used by technically focused investors. It compares the average of gains in days that closed up to the average of losses in days that closed down; readings above 70 suggest an asset is overbought, while an RSI below 30 suggests undervalued conditions are present.
Other Factors
Yet ALNA’s high RSI value isn’t the only reason for investors to be concerned, as there has been some decidedly negative earnings estimate revisions in Allena Pharmaceuticals’ stock as of late. This is especially true when investors dive into some of these revisions in order to get a better picture of ALNA’s prospects for the near term.
Over the past two months, investors have witnessed 2 earnings estimate revision lower compared to none higher for the current year. The consensus estimate for ALNA has also been on a downward trend over the same time period too, as the estimate has fallen from -$1.38/share two months ago to just -$1.68/share today.
If this wasn’t enough, Allena Pharmaceuticals also has a Zacks Rank #4 (Sell)which puts it into unfortunate company among its peers. So, given all of these factors, investors may want to consider exiting this stock now before it falls back to Earth.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Image: Bigstock
Allena Pharmaceuticals (ALNA) Enters Overbought Territory
Allena Pharmaceuticals, Inc. has moved higher as of late, but there could definitely be trouble on the horizon for this company. That is because ALNA is now in overbought territory with an RSI value of 79.67.
What is RSI?
RSI stands for ‘Relative Strength Index’ and it is a popular indicator used by technically focused investors. It compares the average of gains in days that closed up to the average of losses in days that closed down; readings above 70 suggest an asset is overbought, while an RSI below 30 suggests undervalued conditions are present.
Other Factors
Yet ALNA’s high RSI value isn’t the only reason for investors to be concerned, as there has been some decidedly negative earnings estimate revisions in Allena Pharmaceuticals’ stock as of late. This is especially true when investors dive into some of these revisions in order to get a better picture of ALNA’s prospects for the near term.
Over the past two months, investors have witnessed 2 earnings estimate revision lower compared to none higher for the current year. The consensus estimate for ALNA has also been on a downward trend over the same time period too, as the estimate has fallen from -$1.38/share two months ago to just -$1.68/share today.
If this wasn’t enough, Allena Pharmaceuticals also has a Zacks Rank #4 (Sell)which puts it into unfortunate company among its peers. So, given all of these factors, investors may want to consider exiting this stock now before it falls back to Earth.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>