Is Athersys, Inc. (NASDAQ:ATHX) Stock Overbought?

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Athersys, Inc. (NASDAQ:ATHX) has reached an overbought level with an RSI(14) at 86.86.

The Relative Strength Index (RSI) is one of the most widely used technical indicators used to evaluate strengthening and weakening momentum in price action. An RSI above 70 is considered overbought and under 30 is considered oversold. Overbought is a condition that occurs when price momentum is considered too high and susceptible to a decline.

Volatility

Athersys, Inc. has a beta of -0.20 so it is less volatile than the market as a whole. Stocks with beta’s lower than 1 are less risky than the market while those with a higher beta are more risky than the market over the long haul.

The stock’s Average True Range (ATR) is sitting at 0.14. The ATR is a short term indicator of volatility. A high or low ATR doesn’t tell you which way a stock will move but is a signal that it is likely to move.

The stock is trading at $2.53 which is well above $1.77, the 50 day moving average and impressively higher than the 200 day moving average of $1.54. The 50 day moving average moved up $0.76 whereas the 200 day average was up by +63.79%.

Short Interest

Investors are feeling more bearish on shares of Athersys, Inc. lately as indicated by the increase in short interest. The firm had a rise in short interest of 6.18% between August 15, 2017 and August 31, 2017. Short interest increased from 7,590,331 to 8,059,609 over that period. Days to cover increased 3.0 to 12.0 and the percentage of shorted shares was 0.07% on August 31.

In the last earnings report the EPS was $-0.26 and is projected to be $-0.24 for the current year with 113,911,000 shares currently outstanding. Next quarter’s EPS is estimated at $-0.07 and the next full year EPS is projected to be $-0.30.

Company Information

Athersys, Inc., launched on June 7, 2005, is an international biotechnology company that is focused primarily in the field of regenerative medicine. The Business’s MultiStem cell therapy, an allogeneic stem cell product, is its lead platform product and is in later-stage clinical development. Its operations consist primarily of research and product development activities. Its clinical development programs are focused on treating neurological conditions, cardiovascular disease, inflammatory and immune disorders, certain pulmonary conditions and other conditions where the standard of care is limited or inadequate for many patients. MultiStem treatment enhances tissue repair and healing in multiple ways, including reducing inflammatory damage, protecting tissue that is at risk following acute or ischemic injury, and promoting formation of new blood vessels in regions of ischemic injury. These cells appear to be responsive to the environment in which they are administered, by homing to sites of injury and/or organs involved in injury response, and providing active disease response, while producing proteins that may provide benefit in both acute and chronic conditions..