Ituran Location and Control Ltd (NASDAQ:ITRN) Overbought, but Is It Time to Sell?

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Ituran Location and Control Ltd (NASDAQ:ITRN) is at an overbought level with an RSI(14) at 84.96.

The Relative Strength Index (RSI) is a recognized technical indicator used to ascertain strengthening and weakening momentum in stock price. An RSI above 70 is considered overbought with RSI’s under 30 indicating oversold. Overbought is a technical condition that occurs when price momentum is considered too high and may be susceptible to a decline.

Volatility

Ituran Location and Control Ltd’s beta is at 0.79 meaning it is less 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 currently 0.77. The ATR is a short term measure 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.

Company shares last traded at $36.20 much higher than $32.60, the 50 day moving average and which is significantly higher than the 200 day moving average of $31.38. The 50 day moving average was up by +11.03% and the 200 day average went up $4.82 or +15.37%.

Short Interest

Traders are more bullish of late looking at the fall in short interest. The firm experienced a fall in short interest between August 15, 2017 and August 31, 2017 of -11.97%. Short shares decreased from 54,103 to 47,629 over that period. Days to cover decreased -1.0 to 1.0 and the percentage of shorted shares is 0.00% as of August 31.

The company also declared a dividend to be paid on Tuesday the 10th of October 2017. The dividend payment will be $0.240 per share for the quarter which is $0.96 annualized. This dividend amount will represent a yield of $2.82. The ex-dividend date will be on Friday June 23rd, 2017.

Ituran Location and Control Ltd’s P/E ratio is 18.61 and market capitalization is 759.04M.

Company Information

Ituran Location and Control Ltd., together with its subsidiaries, provides location-based services and wireless communication products in Israel, Brazil, Argentina, and the United States. The company’s Location-Based Services segment provides stolen vehicle recovery and tracking services, which enable to locate, track, and recover stolen vehicles for its subscribers; fleet management services that enable corporate and individual customers to track and manage their vehicles in real time; and personal locator services that allow customers to protect valuable merchandise and equipment. This segment also offers on-demand navigation guidance, information, and assistance to its customers, such as the provision of traffic reports, help with directions, and information on the location of gas stations, car repair shops, post offices, hospitals, and other facilities. This segment provides its services to insurance companies and agents, car manufacturers, dealers and importers, cooperative sales channels, and private subscribers. The company’s Wireless Communications Products segment provides Base Site, a radio receiver, which includes a processor and a data computation unit to collect and send data to and from transponders, as well as send that data to control centers; Control Center, a center consisting of software used to collect data from various base sites, conduct location calculations, and transmit location data to various customers and law enforcement agencies; GPS/GPRS-based products, such as navigation and tracking devices installed in vehicles; and SMART, a portable transmitter installed in vehicles that sends a signal to the base site enabling the location of vehicles, equipment, or an individual. Ituran Location and Control Ltd. was founded in 1994 and is headquartered in Azour, Israel..