Is Forward Pharma A/S – American D (NASDAQ:FWP) Stock Oversold?


Forward Pharma A/S – American D (NASDAQ:FWP) has reached an oversold level with a 14-day RSI of 14.60.

The Relative Strength Index (RSI) is one of the most widely used technical indicators used to assess the strength and weakness of momentum in stock price. RSI levels 70 and above are considered overbought and under 30 is considered oversold. Oversold is a condition that occurs when price momentum is considered too low and the stock may be ready to turn upword.

The stock’s Average True Range (ATR) is sitting at 1.97. The ATR is a short term measure of volatility. It doesn’t indicate the likely direction of the stock price, just the likelihood that the stock will move.

Company shares are trading at $5.73 which is significantly lower than $22.04, the stock’s 50 day moving average and which is significantly below the 200 day moving average of $21.76. The 50 day moving average was down $-16.31 whereas the 200 day moving average was down $-16.03 or -73.67%.

Short Interest

Investors are more bullish on the company recently if you look at the decrease in short interest. The stock experienced a fall in short interest of -67.91% as of the latest report on August 31, 2017. Short interest fell from 113,576 to 36,448 over that timeframe. The short-interest ratio decreased to 1.0 and the percentage of shorted shares is 0.00% as of August 31. In the last earnings report the EPS was $-3.55 and is estimated to be $8.79 for the current year with 9,436,000 shares presently outstanding. Next quarter’s EPS is forecasted to be $-0.34 with next year’s EPS anticipated to be $-0.75.

Company Information

Forward Pharma A/S, launched on July 1, 2005, is a clinical-stage biopharmaceutical company. The Company is involved in the development of FP187, a formulation of dimethyl fumarate (DMF) for the treatment of several inflammatory and neurological indications, including multiple sclerosis (MS). The Business’s clinical candidate, FP187, is under development for the treatment of relapsing remitting MS (RRMS) and other immune disorders, such as psoriasis..