Bitauto Holdings Limited Americ (NYSE:BITA) Overbought but Is That a Sell Indicator?

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Bitauto Holdings Limited Americ (NYSE:BITA) is at an overbought level with an RSI(14) at 80.89.

The Relative Strength Index (RSI) is a recognized technical indicator used to assess the strength and weakness of momentum in stock movements. RSI levels above 70 are considered overbought with RSI’s under 30 indicating oversold. Overbought is a technical condition that occurs when prices are considered too high and susceptible to a decline.

Volatility

(NYSE:BITA) currently has a beta of 3.07 meaning it is more volatile than the overall market which definitionaly has a beta of 1. Stocks with a beta lower than the market are less risky than the market while those with a higher beta may be more risky than the market.

The stock’s Average True Range (ATR) is sitting at 2.09. The ATR is an indicator of volatility. It doesn’t indicate the likely direction of the stock price, just the likelihood that the stock will move.

The stock is trading at $47.13 impressively higher than the 50 day moving average of $37.59 and a great deal higher than the 200 day moving average of $30.30. The 50 day moving average went up by +25.37% and the 200 day average went up by +55.54%.

Short Interest

Investors are more bullish on shares of the company if you evaluate the decrease in short interest. The firm experienced a fall in short interest from August 15, 2017 to August 31, 2017 of -11.25%. Short interest decreased from 4,045,060 to 3,590,190 over that period. With short interest at 3,590,190 and short average daily volume at 1,230,783, the short-interest ratio is 3.0 and the percentage of shorted shares was 0.05% on August 31.

Recent Analyst Ratings

On September 1, 2017 the stock rating was changed to “Buy” by CLSA up from the previous “Outperform” rating.

In the latest earnings report the EPS was $-1.32 and is projected to be $1.15 for the current year with 69,810,000 shares currently outstanding. Analysts expect next quarter’s EPS will be $0.32 with next year’s EPS projected to be $1.97.

Company Information

Bitauto Holdings Limited (Bitauto), launched on October 21, 2005, is a provider of Internet content and marketing services for China’s automotive industry. The Business’s bitauto.com and taoche.com Websites provide consumers with information on new and used automobile pricing, and promotional information, specifications, reviews and consumer feedback. The Company operates through three segments: advertising business, EP platform business and digital marketing solutions business. The advertising business offers a range of advertising services mainly to automakers through its Websites, as well as mobile applications. The EP platform business provides Web-based and mobile-based integrated digital marketing solutions to automobile customers in China. The platform enables dealer subscribers to create their own online showrooms, list pricing and promotional information, provide dealer contact information, place advertisements and manage customer relationships to help them reach a set of purchase-minded customers and market their automobiles to consumers online. The digital marketing solutions business provides automakers with digital marketing solutions, including Website creation and maintenance, online public relations, online marketing campaigns and advertising agent services..