Sonos (SONO) stock price move to $16.72 with percentage change of -2.56% during Thursday trading session. Along recent reduction drift, stock price presented -29.15% down comparing value from it 52-week high point and showed 7.80% up in value from its 52-week low point. The stock price performed -8.18% in the past week.
Sonos traded 2247069 shares at hands when compared with its average volume of 3952.56K shares. Volume is an extremely useful tool, and as you can see, there are many ways to use it. There are basic guidelines that can be used to assess market strength or weakness, as well as to check if volume is confirming a price move or signaling a reversal. Indicators can be used to help in the decision process. In short, volume is a not a precise entry and exit tool – however, with the help of indicators, entry and exit signals can be created by looking at price action, volume and a volume indicator. Technical analysts closely watch volume to see when reversals are likely to occur, which means that volume changes can be a precursor to price changes. If volume is decreasing in an uptrend, it could signal that the uptrend is coming to a close and a reversal may be likely.
Noticing profitability, the Company attains gross profit margin of 44.60% . While to figure out more clear vision, firm’s returns on investment calculated as -33.50%; it gives answer about efficiency of different investments in different securities.
Ticker has Quick Ratio of 1.2 which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 1.1 sometimes it remain same with long term debt to equity ratio.
Analysts assigned consensus rating of 2.5. This rating scale created between 1 and 5. Analyst’s suggestion with a score of 3 would be a mark of a Hold views. A rating of 1 or 2 would be indicating a Buy recommendation. A rating of 4 or 5 represents a Sell idea.
Sonos has noticeable recent volatility credentials; price volatility of stock was 8.53% for a week and 7.61% for a month. Volatility is a rate at which the price of a security increases or decreases for a given set of returns. Volatility is measured by calculating the standard deviation of the annualized returns over a given period of time. It shows the range to which the price of a security may increase or decrease.
Volatility is the friend of short-term trader but can be the enemy of the long-term investor. Long-term buy-and-hold investors need to be aware of the many potential pitfalls of investing in volatile stocks. Certainly, if pricing volatility turns out to be a temporary factor, buying a volatile stock is good opportunity to cherry-pick valuable companies at a low price. That said, before taking the deep dive in volatile stocks, investors need to examine the business model, market dependencies and competitive landscape of any company in which they’re considering investing.
Average true range (ATR) as a Volatility indicator
The average true range (ATR) is a measure of volatility introduced by Welles Wilder in his book, New Concepts in Technical Trading Systems. The true range indicator is the greatest of the following: current high less the current low, the absolute value of the current high less the previous close and the absolute value of the current low less the previous close. The average true range is a moving average, generally 14 days, of the true ranges. Average true range (ATR) is often used as a volatility indicator. It doesn’t necessarily predict anything, but extremes in activity can indicate a change in a stock’s movement; higher ATRs can mean a stock is trending, and lower ATRs could indicate a consolidation in price. Its Average True Range (ATR) shows a figure of 1.65.
Explanation of Popular Simple Moving Averages:
The -12.51% negative depiction highlighted by the trends created around 20 day SMA. The established trader’s sentiment toward the stock has created a trading environment which can appropriately be designated as pessimistic.
There has been negative change grasped around 50 day SMA. The stock price is showing -11.67% distance below 50 SMA. On the surface, it seems as the higher the 50-day moving average goes, the more bullish the market is (and the lower it goes, the more bearish). In practice, however, the reverse is true. The 50-day moving average is perceived to be the dividing line between a stock that is technically healthy and one that is not. Furthermore, the percentage of stocks above their 50-day moving average helps determine the overall health of the market. Many market traders also use moving averages to determine profitable entry and exit points into specific securities.
Sonos (SONO) stock price recognized negative trend built on latest movement of 200 SMA with -11.67% during the course of recent market activity. This trend discloses recent direction. The up-to-date direction of 200 SMA is downward. When the price over the last 200 days is moving with increasing trend, look for buy opportunities and when it shows decreasing trend the price is below the last 200 days, look for sell opportunities.
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