Many investors are viewing shares of Cenveo, Inc. (NYSE:CVO) to be “oversold” as the equity reached $0.87 on a recent check. From a technical standpoint, “oversold” can simply mean that the stock is having a Relative Strength Index (RSI) under 30. Cenveo, Inc. (NYSE:CVO) RSI currently stands at 18.20.
RSI was a creation of market researcher J. Welles Wilder Jr. who explained concept in his book, “New Concepts in Technical Trading Systems,” published in 1978.
When looking at companies that are considered to be oversold, it is important to consider the moving averages of the security. We see here that the stock is -34.21% away from the 20-Day Simple Moving Average. Their 50-Day Simple Moving Average is a difference of -66.04% from current levels. Further back, their 200-Day Simple Moving Average is -81.11% difference from today’s price. Currently, the stock is -78.78% from its 50-Day High and -4.41% from the 50-day low.
Based on the stock’s volatility for the week, which is a statistical measure of the dispersion of returns for a given stock and represents average daily high/low percentage range of 29.77% and month of 20.22%.
So are analysts giving the Buy signal at this juncture? Sell-side firms currently have a consensus recommendation of 2.00 on the shares. This is based on a 1 to 5 formula where 1 indicates a Strong Buy and 5 a Strong Sell. Analysts are projecting the stock to trade at $9.50 within the next 12-18 months.