Is Uxin Limited (UXIN) Stock Set to Sail or Sink?

Bulls have made their way to Uxin Limited (NASDAQ:UXIN) as short interest on UXIN stock has fallen by 228,185 shares during the most recent reporting period. The most recent short interest data has been released for the January 31st settlement date, which shows a decrease in total short interest for UXIN, to 5,610,697, a retreat of 3.91% since January 15th. Average daily volume for Uxin Limited at the January 31st settlement plunged to 5,377,382, as compared to 7,015,812 at the January 15th report. That brought days to cover to 1.043388, a 4.34% increase from the 1 days to cover recorded at the prior short interest data release.

Uxin Limited (UXIN) will probably climb 206.07 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $14 price as 12-month high target. This represents a whopping 269.39 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $9.3, which represents a return potential of 145.38 percent when compared to the closing price of the stock of $3.79 on Wednesday, February 13. The lowest price target for the stock is $7 — slightly more than 84.7 percent from UXIN’s current share price.

The stock is currently hovering around the first support level of $3.45. Below this, the next support is placed in the zone of $3.11. Till the time, the UXIN stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 48.31 on daily chart, which may remain a cause for concern. If the price breaks below $3.11 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $4 mark may result into a pull-back move towards $4.22 level.

On 13th of February, Uxin Limited (NASDAQ:UXIN) shares ended higher after a volatile session. The shares accumulated 0.5 points or 15.2 percent at $3.79 with a heavy trade volume of 10.218 million shares. After opening the session at $3.35, the shares went as high as $3.875 and as low as $3.32, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $1.14 billion and now has 299.81 million shares outstanding. Uxin Limited (UXIN) stock has gained 14.85 percent of market value in 21 trading days.

UXIN 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 -$1.74 a share in the trailing twelve months. The stock’s value has fallen -22.02 percent year to date (YTD) against a decline of 0 percent in 12 month’s time. The company’s shares still trade -63.87 percent away from its 1-year high of $10.49 and 34.88 percent up from 52-week low of $2.81. The average consensus rating on the company is 2.3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Uxin Limited (UXIN) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry UXIN operates in has an average P/E of 21.28. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 2.66 on the Price-to-Sales ratio. Compare this with the industry average P/S of 4.27. 64.2 percent is the gross profit margin for Uxin Limited and operating margin sits at -96.6 percent. Along with this, the net profit margin is 0 percent.

Let’s take a look at some insider activity at Uxin Limited (NASDAQ:UXIN) and see the pattern.