Short Interest Indicates Workhorse Group Inc. (WKHS) Will Rise

In the latest fortnight, short interest in Workhorse Group Inc. (NASDAQ:WKHS) stock reduced by 13.91%, indicating a significant rise in bullish sentiment. When it comes to determining how a name is viewed by investors, short interest is often a useful tool. The average analyst recommendations at 0 suggests selling these shares. Between January 15 and January 31, the total number of shorted shares amounted to 2.21 million shares. That was 357,403 less shares than the total of 2.57 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go up. Average daily volume for WKHS at the January 31st settlement jumped to 373,058, as compared to 276,519 at the January 15th report. That brought days to cover to 5.927129, a 36.19% decrease from the 9.288931 days to cover recorded at the prior short interest data release.

Investors will get their next glimpse of WKHS’s Q4 earnings on March 13. Analysts are forecasting revenue to suffer decline of -96.6 percent to $190M in the next fiscal quarter, while earnings are seen soaring by nearly -53.85 percent to -$0.12 per share. History has shown that shares in Workhorse Group Inc. have gone down on 6 different earnings reaction days and are predicted to add 0.05 percent when the company reports upcoming earnings. In last reported earnings results, it earned -$0.15 per share, better than the -$0.16, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $10000, worse than the $2.25M analysts expected. Earnings are estimated to increase by 2.1 percent this year, 22.4 percent next year and continue to increase by 0 percent annually for the next 5 years.

Workhorse Group Inc. (WKHS) will probably climb 225 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $4 price as 12-month high target. This represents a whopping 300 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $3.25, which represents a return potential of 225 percent when compared to the closing price of the stock of $1 on Wednesday, February 13. The lowest price target for the stock is $2.5 — slightly more than 150 percent from WKHS’s current share price.

The stock is currently hovering around the first support level of $0.93. Below this, the next support is placed in the zone of $0.87. Till the time, the WKHS stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 64.33 on daily chart, which may remain a cause for concern. If the price breaks below $0.87 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $1.06 mark may result into a pull-back move towards $1.12 level.

On 13th of February, Workhorse Group Inc. (NASDAQ:WKHS) shares ended higher after a volatile session. The shares accumulated 0.07 points or 7.15 percent at $1 with a light trade volume of 1.672 million shares. After opening the session at $0.93, the shares went as high as $1.05 and as low as $0.9254, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $55.55 million and now has 55.68 million shares outstanding. Workhorse Group Inc. (WKHS) stock has gained 29.44 percent of market value in 21 trading days.

WKHS stock has a trailing 3-year beta of 1.2, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.56 a share in the trailing twelve months. The stock’s value has surged 88.94 percent year to date (YTD) against a decline of -64.5 percent in 12 month’s time. The company’s shares still trade -69.86 percent away from its 1-year high of $3.31 and 169.62 percent up from 52-week low of $0.37. 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 Workhorse Group Inc. (WKHS) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry WKHS operates in has an average P/E of 15.91. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 8.82 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.53. 0 percent is the gross profit margin for Workhorse Group 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 Workhorse Group Inc. (NASDAQ:WKHS) and see the pattern. The earliest insider trade took place on 02/11/2019. Budde Gerald B. gathered a total of 26.31 thousand shares of company at average share price of $0.95. The total for the purchase was set at $24.99 thousand. After this transaction, the Director account balance stood at 119.69 thousand shares. The stock grew 5.26 percent since that insider purchase. On 02/11/2019, Samuels H. Benjamin, Director, purchased 841.93 thousand shares at a price per share of $0.95. This added 799.84 thousand shares to the insider’s fortune and the stock saw a 5.26 percent rally in value since the news became public. This transaction left 1.62 million shares in the Director account.

On 04/27/2018, Director Samuels H. Benjamin performed a purchase transaction worth $50 thousand. This purchase at $2.72 each has added 18.38 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -63.24 percent decrease since the transaction was reported. The insider now is left with 780.91 thousand shares remaining in the account. Burns Stephen S., who performs the CEO job, bought 36.77 thousand shares for $100 thousand. The acquisition occurred on 04/26/2018 was priced at $2.72 per share. The share price plunged -63.24 percent since the reporting date. Burns Stephen S. now left with a stake of 854.1 thousand WKHS stock worth $854.1 thousand after the insider buying.