Many investors are viewing shares of Opko Health, Inc. (NYSE:OPK) to be “oversold” as the equity reached $4.61 on a recent check. From a technical standpoint, “oversold” can simply mean that the stock is having a Relative Strength Index (RSI) under 30. Opko Health, Inc. (NYSE:OPK) RSI currently stands at 19.36.
The Relative Strength Index is a technical analysis oscillator which shows price strength when comparing and contrasting downward and upward movements. It can indicate oversold and overbought price levels for a given stock.
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 -29.09% away from the 20-Day Simple Moving Average. Their 50-Day Simple Moving Average is a difference of -29.79% from current levels. Further back, their 200-Day Simple Moving Average is -34.01% difference from today’s price. Currently, the stock is -36.33% from its 50-Day High and -12.19% 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 6.88% and month of 3.95%. 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 12.75 within the next 12-18 months.