Searching For iQIYI, Inc. (IQ) Direction: Watch This Indicator

A handful of technical analysis tools are suggesting that iQIYI, Inc. (NASDAQ:IQ) overall gets 80% Sell rating. The stock is also flashing a Sell from the Barchart TrendSpotter trading system. Traders hoping to speculate on the IQ’s short-term trajectory should know that short terms indicators for the stock averaged 60% Sell with an average daily trading volume over the past 20 days at 8586675 shares. IQ stock has overall a 0.75% Sell signal considering medium term indicators and the 50-day average daily volume remained almost 9417286 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was 13415873 shares, is 100% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $19.64. Below this, the next support is placed in the zone of $19.42. Till the time, the IQ stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 41.26 on daily chart, which may remain a cause for concern. If the price breaks below $19.42 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $20.19 mark may result into a pull-back move towards $20.52 level.

iQIYI, Inc. (IQ) is projected to climb by 39.56 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $34.4-month high price target. This represents a whopping 73.13 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $30, which represents a return potential of 50.98 percent when compared to the closing price of the stock of $19.87 on Tuesday, November 27. The lowest price target for the stock is $22 — slightly more than 10.72 percent from IQ’s current share price.

Here’s a rundown of insider trading activity for sense of iQIYI, Inc. (NASDAQ:IQ).

IQ shares dropped -0.26 points or -1.29 percent on Tuesday to $19.87 with a light trade volume of 4.772 million shares. After opening the session at $19.89, the shares went as high as $20.29 and as low as $19.74, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $14.9 billion and now has 750.19 million shares outstanding. iQIYI, Inc. (IQ) stock has lost -9.93 percent of market value in 21 trading days.

Analysts at Credit Suisse upped their rating on shares of iQIYI, Inc. (NASDAQ:IQ) from Neutral to Outperform in their opinion released on October 31. Analysts at Goldman downgraded the stock to a Neutral call from its previous Buy stance, in a research note that dated back to August 02.

IQ stock has a trailing 3-year beta of 0, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.33 a share in the trailing twelve months. The stock’s value has surged 27.78 percent year to date (YTD) against a decline of 0 percent in 12 month’s time. The company’s shares still trade -57.02 percent away from its 1-year high of $46.23 and 29.87 percent up from 52-week low of $15.30. The average consensus rating on the company is 1.9, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of iQIYI, Inc. (IQ) are trading at a P/E ratio of 8.65 times earnings reported for the past 12 months. The industry IQ operates in has an average P/E of 25.47. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 4.54 on the Price-to-Sales ratio. Compare this with the industry average P/S of 5.62. -1.6 percent is the gross profit margin for iQIYI, Inc. and operating margin sits at -25.6 percent. Along with this, the net profit margin is 41.2 percent.