MagneGas Applied Technology Solutions, Inc. (MNGA): Shuffling Back the Shorts

MagneGas Applied Technology Solutions, Inc. (NASDAQ:MNGA) short sellers believe it will rise in price. The most recent short interest data has been released for the December 31st settlement date, which shows a -2,015,448 share decrease in total short interest for MNGA, to 3,634,869, a retreat of 35.67% since December 14th. Average daily volume for MagneGas Applied Technology Solutions, Inc. at the December 31st settlement jumped to 9,875,353, as compared to 6,138,201 at the December 14th report. That brought days to cover to 1, a 0% decrease from the 1 days to cover recorded at the prior short interest data release. You could look at analyst ratings. The average analyst recommendations at 0 suggests selling these shares. But the opinions of a small number of people, though sometimes influential, doesn’t always speak for the hundreds of thousands of traders on Wall Street.

Investors will get their next glimpse of MNGA’s Q4 earnings on April 08. Analysts are forecasting revenue to climb 219.4 percent to $3.2M in the next fiscal quarter, while earnings are seen soaring by nearly -99.33 percent to -$0.02 per share. History has shown that shares in MagneGas Applied Technology Solutions, Inc. have gone down on 13 different earnings reaction days and are predicted to add 0.06 percent when the company reports upcoming earnings. In last reported earnings results, it earned -$0.1 per share, better than the -$0.15, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.6M, worse than the $3.4M analysts expected. Earnings are estimated to increase by 57.9 percent this year, 86.7 percent next year and continue to increase by 0 percent annually for the next 5 years.

MagneGas Applied Technology Solutions, Inc. (MNGA) will probably climb 689.47 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $1.5-month high price target. This represents a whopping 689.47 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $1.02, which represents a return potential of 436.84 percent when compared to the closing price of the stock of $0.19 on Friday, January 11. The lowest price target for the stock is $0.55 — slightly more than 189.47 percent from MNGA’s current share price.

The stock is currently hovering around the first support level of $0.15. Below this, the next support is placed in the zone of $0.12. Till the time, the MNGA stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 34.58 on daily chart, which may remain a cause for comfort. If the price breaks below $0.12 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $0.21 mark may result into a pull-back move towards $0.24 level.

On 11th of January, MagneGas Applied Technology Solutions, Inc. (NASDAQ:MNGA) shares ended lower after a volatile session. The shares dropped -0.04 points or -18.19 percent at $0.19 with a heavy trade volume of 69.285 million shares. After opening the session at $0.1797, the shares went as high as $0.2 and as low as $0.138, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $31.97 million and now has 168.42 million shares outstanding. MagneGas Applied Technology Solutions, Inc. (MNGA) stock has lost -30.22 percent of market value in 21 trading days.

MNGA stock has a trailing 3-year beta of -0.41, 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 -$6.8 a share in the trailing twelve months. The stock’s value has fallen -23.06 percent year to date (YTD) against a decline of -95.93 percent in 12 month’s time. The company’s shares still trade -96.49 percent away from its 1-year high of $5.40 and 44.89 percent up from 52-week low of $0.13. The average consensus rating on the company is 0, 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 MagneGas Applied Technology Solutions, Inc. (MNGA) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry MNGA operates in has an average P/E of 51.23. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 4.15 on the Price-to-Sales ratio. Compare this with the industry average P/S of 10.97. 35.4 percent is the gross profit margin for MagneGas Applied Technology Solutions, Inc. and operating margin sits at 0 percent. Along with this, the net profit margin is 0 percent.

Let’s take a look at some insider activity at MagneGas Applied Technology Solutions, Inc. (NASDAQ:MNGA) and see the pattern. The earliest insider trade took place on 01/12/2018. Santilli Carla parted with a total of 108.33 thousand shares of company at average share price of $0.31. The total for the sales was set at $33.58 thousand. After this transaction, the Director account balance stood at 306.87 thousand shares. The stock lost -38.71 percent since that insider sale. On 12/15/2017, Ingargiola Luisa, Director, purchased 50 thousand shares at a price per share of $0.29. This added 14.5 thousand shares to the insider’s fortune and the stock saw a -34.48 percent retreat in value since the news became public. This transaction left 129.29 thousand shares in the Director account.

On 12/15/2017, Director Huntington Christopher performed a purchase transaction worth $31.42 thousand. This purchase at $0.29 each has added 108.33 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -34.48 percent decrease since the transaction was reported. The insider now is left with 109.02 thousand shares remaining in the account. Staunton William W Iii, who performs the Director job, bought 108.33 thousand shares for $31.42 thousand. The acquisition occurred on 12/15/2017 was priced at $0.29 per share. The share price plunged -34.48 percent since the reporting date. Staunton William W Iii now left with a stake of 130.26 thousand MNGA stock worth $24.75 thousand after the insider buying.